A monopolist sells in two markets. The inverse demand curves in the two markets are, respectively, p1 = 306-592. The monopolist has no fixed costs and a constant marginal cost of 6. The profit maximising quantities are: 122 29₁ and P2 = O O 91 = 39 and q2 = 28 29 and 92 91 91 = 91 91 = 58 and q2 = 32 = = 50 and 92 49 and 92 = = 30 = = = 29 = = 40

A monopolist sells in two markets. The inverse demand curves in the two markets are, respectively, p1 = 306-592. The monopolist has no fixed costs and a constant marginal cost of 6. The profit maximising quantities are: 122 29₁ and P2 = O O 91 = 39 and q2 = 28 29 and 92 91 91 = 91 91 = 58 and q2 = 32 = = 50 and 92 49 and 92 = = 30 = = = 29 = = 40

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

A monopolist has the following production function Q-L0505 where Lis the number of units of labour and K is the number of units of capital used in the production process. Suppose that the cost per unit of labour is $4 and the cost per unit of capital is $16 and the monopolist takes the input prices as given. Assume the market demand is P-24-Q. If the monopolist is going to maximise the profit, how much output will they produce? How many units of labour and capital is the firm going to employ? How much profit is the firm going to earn?
3. Consider a monopolist who faces the following demand: Demand: P= 100 – 10Q MC= 50+20 a) Find the price quantity combination that maximizes profit for the monopolist. b) Is the firm making positive, negative or zero profits? (100,100) Kareem chooses (60, 105) (500, 400) Saleem chooses Kareem chooses (50,420) 4. Calculate the SPNE/SPNES for the game stated above.
Title Suppose there are two classes of buyers in a market served by a monopolist. Description Suppose there are two classes of buyers in a market served by a monopolist. At this point the two classes are lumped together and the monopolist is currently producing the profit maximizing quantity based upon being a single price monopolist. Suppose that the monopolist perceives that its relevant market demand curve is given by the equation P = (40/3) – (2/3)Q and its MC = ATC = 4. a. Suppose this monopolist acts as a single price monopolist. Calculate the monopolist’s price, quantity, and profit given the above information. Now, suppose that the monopolist realizes that the two classes of buyers have different demand curves and that the first class of buyers demand curve is given by the equation P = 10 – Q while the second class of buyers demand curve is given by the equation P = 20 – 2Q. Assume for the rest of this problem that this monopolist will practice third degree price…
Mustapha maintains a monopoly in the holographic TV market because of its patent, but it is about to expire. The market demand and Mustapha's production cost are given by: P = 100 -0.50 and TC = 100+ 0.5Q² The market price is decimal place). The market quantity is or decimal place). The monopoly profit is sign, comma or decimal place). (please put your answer in numerical values without any dollar sign, comma or (please put your answer in numerical values without any comma (please put your answer in numerical values without any dollar
The figure at right shows the demand line, marginal revenue line, and cost curves for a single-price monopolist. Now suppose the monopolist is able to charge a different price on each different unit sold. 200- The profit-maximizing quantity for the monopolist is 400. (Round your response to the nearest whole number.) 180 160- MC The price charged for the last unit sold by this monopolist is s450 (Round your 140- response to the nearest dollar) 2 120, ATC The monopolist's profit is $ 50. (Round your response to the nearest dollar.) 100- 80 60- 40- 20- MR D- 76 150 225 300 375 450 525 600 675 750 Quantity Price (S)
Consider the relationship between monopoly pricing and the price elasticity of demand. If demand is inelastic and a monopolist raises its price, quantity would fall by a percentage than the rise in price, causing profit to Therefore, a monopolist will produce a quantity at which the demand curve is elastic. Use the purple segment (diamond symbols) to indicate the portion of the demand curve that is inelastic. (Hint: The answer is related to the marginal- revenue (MR) curve.) Then use the black point (plus symbol) to show the quantity and price that maximizes total revenue (TR). (? 10 Demand Inelastic Demand 6 5 Max TR 3 2 1 -1 -2 Marginal Revenue -3 -4 1 2 3 4 5 7 8 9 10 Quantity
Suppose a monopolist faces consumer demand given by P400 - 20 with a constant marginal cost of $40 per unit (where marginal cost equals average total cost. assume the firm has no fixed costa). If the monopoly can only charge a single price, then it will eam profits of S (Enter your response rounded an a whole number) Correspondingly, consumer surplus is $. However, if the fierm were to practice price discrimination such that consumer surplus becomes profi, then, holding output constant at 90, the monopoly would have profits of $
Suppose that the monopolist from Question 4 is now forced to charge the same price in both markets. Using thedemand functions and cost function from Question 4, what is the total inverse demand in this case? What is theprofit-maximizing price? What is the monopolist’s profit? (Question 4 = A monopolist is operating in two separate markets. The inverse demand functions for the two markets are P1 = 35 – 2.5Q_1 and P2 = 30 – 2Q_2. The monopolist’s total cost function is TC(Q) = 8 + 5(Q_1 + Q_2). Q_1 means Q subscript 1
Consider the case where there is a consumer in the market with a demand of P = 60 - 2q. A monopolist has variable costs of VC = 2q² where Pis price and q the quantity sold. The monopolist engages in first degree price discrimination using a two-part tariff, what is the fixed fee (F) and per-unit fee charged (p)? OF=200, p = 20 OF=150, p = 20 OF=100, p = 40 OF=400, p = 40 Hide
10 8 7 5678 Price = 10, Quantity = 5 Price = 3, Quantity = 5 MC Price = 8, Quantity = 7 Q If the monopolist depicted in the above figure is maximizing profits, the correct price/output combination will be: Price = 6, Quantity = 6 ATC D
Columns 1 and 2 make up a portion of a monopolist's production function for a single variable input, labor. Columns 2 and 3 represent the demand function facing the monopolist over this range of output: (1) (2) Units of Labor Units of Output 3 370 4 490 5 570 6 600 620 7 (3) Price $10 9 8 7 6 If an increase in consumers' income increases product price by $2 at each level of output, how many units of labor will the firm employ at a wage rate of $300?
Assume a single-price monopolist has an inverse market demand curve given by P(Q)=300-0.5Q, and has a cost curve: C(Q)=125+20Q+0.5Q2. We already know that Monopolist will provide 140 units, Economic profit is 19475, and Economic Rent is 190. If the impact of a 35% ad valorem tax imposed on the consumers in the market. Then: Q1: What is the equilibrium quantity will be sold in the after-tax equilibrium? Q2: What are the economic rents of the monopolist?