A monopolist with the cost function C(q) = q faces the
market demand curve
p =...
A monopolist with the cost function C(q) = q faces the
market demand curve p = 101 -2q. What is the maximum amount the monopolist is
willing to pay for advertising that shifts its demand curve to
p = 101-q?
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A monopolist faces a market demand curve of q=100-p. The
monopolist’s cost function is given by (q) = 3000 + 20q.
a) If the monopolist can perfectly price discriminate, how many
units will be sold?
b) If the monopolist can perfectly price discriminate, how much
consumer surplus will there be?
c) If the monopolist cannot price discriminate, how much consumer
surplus will there be? (For this question, think long run.)
A monopolist faces a market demand: P = 200 – Q. The monopolist
has cost function as C = 1000 + Q2, and marginal cost MC = 2Q.
(
1) Solve for Marginal Revenue (MR) function.
(2) Find the profit-maximizing quantity? Profit?
(3) Suppose the monopolist decides to practice 3rd degree price
discrimination. Without solving for the 3rd degree price
discrimination, can you compare the new profit earned by the
monopolist with the old profit?
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 market (inverse) demand curve P = 50 − Q .
Its total cost is C = 100 + 10Q + Q2 .
a. (1 point) What is the competitive equilibrium benchmark in
this market? What profit does the firm earn if it produces at this
point?
b. (2 points) What is the monopoly equilibrium price and
quantity? What profit does the firm earn if it produces at this
point?
c. (2 points) What is the deadweight...
A monopolist faces a single market with the following demand
curve and total cost
P = 180 – 2.5Q and TC = 2Q2
i. Determine the quantity of output that it should produce and
the price it should charge to maximize profit. Then, calculate the
profit.
A monopolist faces a demand curve of Q = 164 – P, where P is
price and Q is the output produced by the monopolist. What choice
of output will maximize revenue?
Group of answer choices
70
74
82
86
if monopolist produces good X and faces a demand curve X = 112 -
2P, where P is price. What is the monopolist's marginal revenue as
a function of good X?
Group of answer choices
44 - X
56 -...
A monopoly faces market demand Q = 30−P and has a cost
function C(Q) = Q^2
(a) Find the profit maximizing price and quantity and the
resulting profit to the monopoly.
(b) What is the socially optimal price? Calculate the
deadweight loss (DWL) due to the monopolist behavior of this firm.
Calculate consumer surplus (CS) and producer surplus (PS) given the
profit maximizing price.
(c) Assume that the government puts a price ceiling on the
monopolist at P =22. How...
A monopolist faces a demand curve of P = 120 – Q, and has costs
of C = 50 + 20Q. The monopolist sets a uniform price to maximize
profits.
Group of answer choices
a) All of the answers are correct.
b)The profit-maximizing price is 70.
c)Deadweight loss is 1250.
d) Producer surplus is 2500.
Suppose a monopolist faces a market demand curve Q= 120 - 2p. a.
If marginal cost is constant and equal to zero, what is the
magnitude of the welfare loss? b. If marginal cost increases to MC=
10, does welfare loss increase or decrease? Use a graph to explain
your answer.
A monopolist has a marginal cost curve MC=Q and a home market
demand P=30-Q. The monopolist can also sell in a foreign market at
a price pf Pf=12. Find and graph the quantity produced, quantity
sold at home, and quantity sold in the foreign market, as well as
the price charged at-home market. Explain why the monopolist's
profits would fall if it were to produce the same quantity but sell
more in the home market.