Consider a monopolist facing a demand curve P = 100 - Q. The monopolist only has fixed cost of $1000. To maximize profit the monopolist should produce Q = charge P = $. The monopolist will earn a profit of $________ 40; $60; $1400. 50; $50; $1500. 80; 20; $600. 100; 20; $1500.
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- Consider a monopolist that sells cable subscriptions. When the price is $10 a week, it can sell 175 subscriptions. When the price is $15 a week, it can sell 100 subscriptions. The monopolist has fixed costs of $200. The MC for the provision of the cable is $6 a week. If this monopolist must choose between selling 100 or 175 subscriptions, it will choose to sell units at a price of and earn economic profits equal to 175; $10; $700 100; $15; $700 175; $15; $900 100; $15; $900 none of the aboveYou are the manager of a monopolist that produces women shoes and faces a random marginal cost. The demand for women shoes is O = 1000 - 0.1P Marginal cost can be constant at either $60 with a probability of 50% or $40 with a probability of probability of 50%. Draw a graph and plot the demand for shoes. Derive the marginal revenue curve and plot it on the graph. Find the price and output that maximize profits. Find the firm's profits.A monopolist faces inverse market demand of P = 140 – and has Total Cost given by TC(Q) = 2Q? + 10Q + 200. %3D Find this monopolist's profit maximizing output level. Find this monopolist's profit maximizing price. How much profit is this monopolist earning?
- The table shows the demand schedule of a monopolist. Calculate marginal revenue and fill in the revenue column in the table. Assume that output can only be sold in integer amounts (i.e., 1 unit, 2 units, etc.). Once you have filled in marginal revenue, identify the quantity produced by the monopolist in this market. Not all numbers in the answer bank will be used. Quantity Price Marginal cost Marginal revenue 1 $13 $1 Answer Bank $12 $2 $3 $6 $1 $5 $10 3 $11 $3 $0 $7 $8 $9 $12 4 $10 $4 $13 $11 $2 $4 5 $9 $5 6. $8 $6 %24The table below shows a monopolist's demand curve and the cost information for the production of its good. If the monopolist is trying to maximize its profit what would it be? Quantity Price per Unit Total Cost 10 $100 $100 20 $80 $400 30 $60 $800 40 $40 $1,400 50 $20 $2,400 Question 40 options: a) $1,200 b) $1,000 c) $1,600 d) $1, 800The table shows the demand schedule of a monopolist. Calculate marginal revenue and fill in the revenue column in the table. Assume that output can only be sold in integer amounts (i.e., 1 unit, 2 units, etc.). Once you have filled in marginal revenue, identify the quantity produced by the monopolist in this market. Not all numbers in the answer bank will be used. Quantity Price Marginal cost Marginal revenue 1 $13 $3 $13 Answer Bank 2 $12 $4 $6 $8 $4 3 $11 $5 $9 $1 $2 $11 $5 4 $10 $6 $9 $7 $3 $10 $0 $12 $7 $8 $8 How many units does the monopolist produce? units
- A monopolist faces a demand curve p=150-q. Currently MC=AC=50. The monopolist is able to develop a cost-saving device which will lower their cost to MC=AC=30.a) How much will profits increase after the introduction of the new technology?b) If it costs the monopolist $3000 to develop this technology would they? If not what would be their maximum they would pay to develop this technology?c) If this industry were perfectly competitive, with the same cost, how much could a patent holder earn for this technology?You are considering entering a market serviced by a monopolist You are considering entering a market serviced by a monopolist. You currently earn $0 economic profits, while the monopolist earns $5. If you enter the market and the monopolist engages in a price war, you will lose $5 and the monopolist will earn $1. If the monopolist doesn’t engage in a price war, you will each earn profits of $2.There are two possible solutions or equilibria. What are they? You are considering entering a market serviced by a monopolistA monopolist has demand, marginal revenue, total cost, and marginal cost curves given by: Q demanded = 1000 – 2P MR = 500 – Q TC = 5,000 + 50Q MC = 50 %3D Choose the response with the correct profit- maximizing output level and profit amount for this firm. Profit-max Q = 900; Profit-max P = $50; Profit %3D $95,000 Profit-max Q = 900; Profit-max P = $50; Profit = – $5,000 Profit-max Q = 450; Profit-max P = $275; Profit = $141,250 Profit-max Q = 450; Profit-max P = $275; Profit = $96,250
- There is a firm who is monopolist. Suppose that there are 20,000 potential customers with valuations uniformly distributed between £0 and £1000. A customer will purchase the products if her valuation is more than the firm's price. a) How many quantity will the firm sell if it sets a single price of £550? b) Write an equation for the firm's demand curve. c) If marginal cost is £100, what is the profit-maximizing price and quantity? What is consumer surplus and total welfare? Suppose that the firm can perfectly price discriminate. a) What is the profit-maximizing quantity now? b) What is consumer surplus and total welfareThe data below relate to a monopolist and the product it produces. If the firm wants to maximize profit, what output and price will it choose? Quantity Price per Unit Total Cost 0 $22 $20 1 $20 $24 2 $18 $27 3 $15 $32 4 $14 $40 5 $12 $49 6 $10 $59 Question 1 options: a) Q=4 : P=$14 b) Q=5 : P=$12 c) Q=2 : P=$18 d) Q=3 : P=$15.Give typing answer with explanation and conclusion A monopolist has a demand curve given by P = 88 − Q and a total cost curve given by TC = 34 + Q2. The associated marginal cost curve is MC = 2Q. Suppose the monopolist also has access to a foreign market in which he can sell whatever quantity he chooses at a constant price of 60. How much will he sell in the foreign market? What will his new quantity and price be in the original market?
