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In: Economics
Suppose a monopolist faces consumer demand given by P=500-5Q with a constant marginal cost of $20...
Suppose a monopolist faces consumer demand given by P=500-5Q with a constant marginal cost of $20 per unit (where marginal cost equals average total cost. assume the firm has no fixed costs). If the monopoly can only charge a single price, then it will earn profits of?
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
Suppose a monopolist faces consumer demand given by P=300?11Q with a constant marginal cost of ?$100...
Suppose a monopolist faces consumer demand given by
P=300?11Q
with a constant marginal cost of ?$100 per unit? (where marginal
cost equals average total cost. assume the firm has no fixed?
costs).
If the monopoly can only charge a single? price, then it will
earn profits of ?$__. ?(Enter your response rounded as a whole?
number.) ?
Correspondingly, consumer surplus is ?$__. ?
However, if the firm were to practice price discrimination such
that consumer surplus becomes? profit, then, holding...
Suppose a monopolist faces a market demand curve Q = 50 - p. If marginal cost...
Suppose a monopolist faces a market demand curve Q = 50 - p. If
marginal cost is constant and
equal to zero, what is the magnitude of the welfare loss? If
marginal cost increases to MC = 10, does welfare loss increase or
decrease? Use a graph to explain your answer
A monopolist faces a demand of P = -3Q + 400. The monopolist’s marginal cost is...
A monopolist faces a demand of P = -3Q + 400. The monopolist’s
marginal cost is MC = 2Q + 80. The total cost for the monopolist is
TC = Q2 + 80Q + 6000
a) Find the profit-maximizing quantity, price, and profit of the
monopolist.
b) A regulatory agency tries to force the monopoly to produce
the same quantity as a competitive firm. Show what this price and
quantity is and why the firm will eventually shut down rather...
41. A monopolist has a constant marginal and average cost of $10 and faces a demand...
41. A monopolist has a constant marginal and average cost of $10
and faces a demand curve of QD = 1000 – 10P.
Marginal revenue is given by MR = 100 – 1/5Q.
a. Calculate the monopolist’s profit-maximizing quantity, price,
and profit.
b. Now suppose that the monopolist fears entry, but thinks that
other firms could produce the product at a cost of $14
per unit (constant marginal and average cost) and that many firms
could potentially enter. How could...
A monopolist has a marginal revenue curve given by MR = 500 - 5Q, and a...
A monopolist has a marginal revenue curve given by MR = 500 -
5Q, and a total cost curve given by TC = 1000 + 100Q. The
monopolist has constant marginal cost of 100. What is the
monopolist's demand curve? Calculate the monopolist's profit
maximizing price and quantity. What is the monopolist's profit (or
loss)? Show your work to the best of your ability.
A monopolist with marginal cost of MC=Q faces a demand curve of QD = 20 -...
A monopolist with marginal cost of MC=Q faces a demand curve of
QD = 20 - 2P. This implies that P = 10 - (1/2)Q and that the
marginal revenue is MR = 10 - Q. a. Sketch demand, marginal
revenue, and marginal cost curves. b. What quantity and price will
the monopolist set? c. What quantity and price would the monopolist
set if it produced at the efficient market outcome where P=MC? d.
Identify the CS, PS and DWL...
A monopolist faces an inverse demand of P(Q) = 250−2Q and constant marginal costs. a) Calculate...
A monopolist faces an inverse demand of P(Q) = 250−2Q and
constant marginal costs.
a) Calculate the optimal price, quantity and total revenues, for
MC = 10 and MC = 30.
b) Repeat question a) under perfect competition with constant
marginal costs for MC = 10 and MC = 30.
c) Discuss how the marginal cost increase from 10 to 30 affects
revenue in the monopoly case vs perfect competition. Relate your
answer to the price elasticity of demand
d)...
A monopolist with constant average and marginal cost equal to 8 faces demand Q = 100...
A monopolist with constant average and marginal cost equal to 8
faces demand Q = 100 - P, implying that its marginal revenue is MR
= 100 - 2Q. (Wrong question Its profit maximizing quantity is ...
should be deadwieght loss) the deadweight loss is Select one:
a. 1058
b. 966
c. none of the answers.
d. 3680
Suppose the demand for a product faces by a monopolist firm is given by P= 120...
Suppose the demand for a product faces by a monopolist firm is
given by P= 120 - 2Q. If the marginal cost of producing the product
is $20, what is the profit maximization price the firm should
charge for the product? What are the firm's profits? Show the
work.
5. A monopolist faces inverse demand P= 30−4Q and has constant marginal cost MC= 6. Currently...
5. A monopolist faces inverse demand P= 30−4Q and has constant
marginal cost MC= 6. Currently the government provides a per-unit
subsidys to the firm.
i. What is the quantity provided by the monopolist as a function
of subsidys?What price does the monopolist charge?
ii. What is the size of the per unit subsidys for which the
monopolist will produce the socially efficient quantity? How much
deadweight loss is saved by this subsidy?
What is the total payment that the...
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