A monopoly sells 30 units of output when price is GH¢12 and 40 units when price is GH¢10. If its demand schedule is linear, what is the specific form of the actual demand function? Use this function to predict quantity sold when price is GH¢8. What domain restrictions would you put on this demand function?
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when price is GH¢10. If its demand schedule is linear, what is the specific
form of the actual demand function? Use this function to predict
quantity sold when price is GH¢8. What domain restrictions would you
put on this demand function?
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- A monopoly sells 30 units of output when price Ksh 12 and 40 units when price is Ksh 10. If its demand schedule is linear, what is the specific form of the actual demand function? Use this function to predict quantity sold when price is Ksh 8. What domain restrictions would you put on this demand function?The market demand function for Pierogi in Pittsburgh Pennsylvania has a constant elasticity of -3. More precisely the actual daily demand was estimated to be Q=34560p3, where p is the price per pound. Each pound costs c-$8 to produce. Pittsburgh is served by a local monopoly producer. Compute the monopoly's profit-maximizing price and the monopoly's profit level. Show your computations.Lynch Enterprises has a monopoly in the production of dehumidifiers. Its factory is located in Spanish Town. There is no other industry in Spanish Town, and the labor supply equation there is W=10+0.1L, where W is the daily wage and L is the number of person-days of work performed. Dehumidifiers are produced with a production function, Q=10L, where L is daily labor supply and Q is daily output. The demand curve for dehumidifiers is P=41−Q/1,000, where P is the price and Q is the number of sales per day. What is the price of dehumidifiers? Select one: a. 31 b. 11 c. 10 d. 100
- 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 ▼. Therefore, a monopolist will 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). Price 10 9 CO 7 6 S E 2 0 -2 Demand Search percentage than the rise in price, causing profit to produce a quantity at which the demand curve is elastic. Marginal Revenue 86 Inelastic Demand e + Max TR C ? (CC Speaker/Headph ASuppose a certain city has a monopoly cable-television company. This company has total costs TC = 0.25Q2 + 30Q + 70. (Hint: using calculus, this means MC = 0.5Q+ 30since MC is the derivative of TC with respect to output.) The demand in the community is approximated by the equationQd = 60- P/2(alternatively, you can write the demand equation as Qd = 60–0.5P). Graphically depict the demand curve as well as the marginal cost (MC) curve. If the cable company is free to choose its own pricePm and quantityQm, graphically depictthe monopoly equilibrium price and quantity. Add any other curve(s) to your diagram that may be required to obtain this outcome. Compute and state the exact monopolist equilibrium pricePm and quantityQm that you depicted graphically.If a monopoly faces an inverse demand curve of p=450-Q, has a constant marginal and average cost of $30, and can perfectly price discriminate, what is its profit? What are the consumer surplus, welfare, and deadweight loss? How would these results change if the firm were a single-price monopoly? Profit from perfect price discrimination () is $88200. (Enter your response as a whole number.) Corresponding consumer surplus is (enter your response as whole numbers): welfare is and deadweight loss is Profit from single-price profit-maximization is = $44100. (Enter your response as a whole number.) Corresponding consumer surplus is (enter your response as whole numbers): welfare is and deadweight loss is CS = $0 W = $ 88200 DWL = $0. CS = $ 22050 W = $ 66150 DWL = $ 22050
- 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 QuantityIf a monopoly faces an inverse demand curve of p=330-Q, has a constant marginal and average cost of $90, and can perfectly price discriminate, what is its profit? What are the consumer surplus, welfare, and deadweight loss? How would these results change if the firm were a single-price monopoly? Profit from perfect price discrimination () is $ 28800. (Enter your response as a whole number.) Corresponding consumer surplus is (enter your response as whole numbers): welfare is and deadweight loss is CS=$ W = $ DWL = $ AYou are the manager of a monopoly, and your demand and cost functions are given by P = 300 – 3Q and C(Q) = 1,500 + 2Q2, respectively. What price-quantity combination maximizes your firm’s profits? Calculate the maximum profits. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price-quantity combination? What price-quantity combination maximizes revenue? Calculate the maximum revenues? Is demand elastic, inelastic, or unit elastic at the revenue-maximizing price-quantity combination?
- In British Columbia, Canada a company named after Tim Hortons runs a monopoly on a sweet snack called Timbits! Suppose the demand for Timbits is P=90-Q and the cost function is C-Q How much would the consumer surplus, producer surplus and DWL be in case Tim Hortons a single-price monopoly? Suppose Tim Hortons could install a device in its premises that could immediately 11) predict the willingness to pay of every unsuspecting customer entering its franchise premises and charge them that corresponding amount! Additionally, suppose they could also stop resale of products, and thus become a first degree price discriminatıng monopoly. How much would the consumer surplus, producer surplus and DWL be in this case?A monopoly that produces beer has estimated the following demand function: 1 p(q) = 300 q + 20t 3000 The variables are defined as follows: p is the price of a liter of beer, q is production, and t is the monthly average temperature in degrees centigrade. The estimated cost of producing a liter of beer is $12. Below is a table with the average temperature recorded in Arizona during March and April. Month Temperature March 35 April 38 a) Find the optimal price for the monopolist in each month b) Calculate the Mark-up for April and according to it estimate the elasticity of demand. Comment on the results. C) Determine the efficiency loss in the month of March.You are the manager of a monopoly. A typical consumer's inverse demand function for your firm's product is P = 250- 4Q, and your cost function is TC = 10Q. A. MC is fixed and is equal to $10 (MC=AC=S). MR=250-8Q. (P=price, Q=quantity of output, TC=total cost, MC=marginal cost, MR=marginal revenue, S=supply) What price the company should choose to get maximum profit if the company will use ordinary pricing strategy? Now suppose the company is thinking about using price discrimination for lower income group of customers. If the company will offer discount of $30 in price to the lower income groups how much additional profit will the company earn? Illustrate graphically. Explain the conditions needed to apply the price discrimination strategy?