Question
In: Economics
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
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
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...
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...
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)...
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
Suppose a monopolist faces a market demand curve Q= 120 - 2p. a. If marginal cost...
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.
3. A monopolist producing with a constant marginal cost of $8 has the following demand for...
3. A monopolist producing with a constant marginal cost of $8
has the following demand for its product. Price $20 $18 $16 $14 $12
$10 $8 Quantity 1 2 3 4 5 6 7 Find the optimal output, price and
calculate the resulting monopoly profit.
3. A monopolist producing with a constant marginal cost of $8 has the following demand for...
3. A monopolist producing with a constant marginal cost of $8
has the following demand for its product. Price $20 $18 $16 $14 $12
$10 $8 Quantity 1 2 3 4 5 6 7 Find the optimal output, price and
calculate the resulting monopoly profit.
Suppose a monopolist has constant (average and marginal cost of AC = MC = 8) and...
Suppose a monopolist has constant (average and marginal cost of
AC = MC = 8) and faces demand such that QD = 100 -
P.
Derive MR curve
(hint: you can calculate TR with
Demand curve, then you can drive MR from TR)
Calculate a monopolist’s profit-maximizing Quantity and
Price
Calculate the equilibrium Price and Quantity in the
perfectly competitive market
Draw all curves (Demand, MR, and MC
curves)
Calculate Monopoly Profit and Dead Weight Loss
(DWL).
Comparing the profit-maximizing...
A monopolist can produce a constant average (and marginal) cost of AC=MC=$5. It faces a market...
A monopolist can produce a constant average (and marginal) cost
of AC=MC=$5. It faces a market demand curve given by Q=53-P.
A)
Consider Problem 2 in the Homework 12
Supplement. Suppose a second firm enters the market. Let
Q1 be the output of the first firm and Q2 be the output of the
second. Market demand is now given by Q1+Q2 = 53-P. Assuming that
this second firm has the same costs as the first, how much will
each firm produce...
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