Market demand is p=100-3x. The cost function of the monopolist is given by C(x)=150+5x. To reduce...

Market demand is p=100-3x. The cost function of the monopolist is given by C(x)=150+5x. To reduce DWL, the regulator is considering imposing a price ceiling to maximize efficiency. Which one will have a higher DWL (alternatively, which one will be LESS effective as lowering the DWL of monopoly)?

Expert Solution

Rahul Sunny answered 1 year ago

A monopolist faces a market demand curve of q=100-p. The monopolist’s cost function is given by...

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 with the cost function C(q) = q faces the market demand curve p =...

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The market demand function for a monopolist is p=58-2Q and its cost is C(Q)=10Q. a) Determine...

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A monopolist has a cost function given by c(?)=?2 and faces a demand curve given by...

A monopolist has a cost function given by c(?)=?2 and faces a demand curve given by P(?)=120−y. (a)What is its profit-maximizing level of output? What price will the monopolist charge? (b)Calculate the deadweight loss imposed by the monopolist. Show also the deadweight loss in a graph (c)If you put a lump sum tax of $100 on this monopolist, what would its output be? (d)Suppose that you put a specific tax on the monopolist of $20 per unit output. What would...

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1. Assume the market demand function is D(P)=100 – P and the firm cost function is...

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Acme is a monopolist who faces inverse market demand function P (Q, y) = 100 -...

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The cost function C and the price-demand function p are given. Assume that the value of...

The cost function C and the price-demand function p are given. Assume that the value of C(x) and p(x) are in dollars. Complete the following. C(x) = x2 100 + 7x + 2000; p(x) = − x 40 + 5 (a) Determine the revenue function R and the profit function P. R(x) = P(x) = (b) Determine the marginal cost function MC and the marginal profit function MP. MC(x) = MP(x) = Here is a picture of the problem: https://gyazo.com/6ce694b737f7dd4cfb20fbb9d1917420

The market demand is given as; P = 100 – Q Marginal cost of production is...

The market demand is given as; P = 100 – Q Marginal cost of production is given as; MC = 10 Calculate the level at which market decides to produce and market price Total Revenue ( TR) and Total Cost (TC) Economic Profit (π) Identify the market structure; either perfect competition or monopoly?

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