Now assume that the bottled water market is a monopoly because of even more mergers. Illustrate graphically the monopolist’s: profit, quantity, price and deadweight loss. If the monopolist can perfectly price discriminate, what happens to your answers? Given this, is price discrimination a good or bad thing for a monopolist to pursue? (please help with the graph!!)
Q: Leontief model is used to analyze the interdependence of economies. In this model you consider n…
A: Studying the flow of goods and services between different sectors as well as the flow of inputs and…
Q: Consider an economy with 100 pieces of apple (A) and 150 pieces of banana (B) that must be…
A: The utility function refers to all those commodity bundles that derive the same amount of utility…
Q: two conswers 1&2, monopolist AC=MC=5 U₁(x,T₁)=40X-T₁ U₂ (X₂, T₂) = 60√X-T₂ B } caus - Consider the…
A: The utility function refers to all those commodity bundles that derive the same amount of utility…
Q: Suppose consumers consume and gain utility from two types of goods and services – (1) health care…
A: Utility is a concept in economics that represents the satisfaction, well-being, or pleasure that an…
Q: Ravi wins a large prize and receives an award of $46,000. He invests this money into an account that…
A: Ravi secures a substantial prize and is granted a sum of $46,000 as an accolade. He opts to place…
Q: The graph gives an economy's AE curve when the economy is in long-run equilibrium. Equilibrium…
A: Aggregate expenditure refers to the total amount of spending in an economy over a specific period,…
Q: If few companies had monopsony power couldn't he just go to a different employer?
A: Monopsony power in labor markets refers to a situation where there is only one, or very few, buyers…
Q: Use the table below to answer the following questions. Wage Rate (dollars per hour) 7 6 5 4 3 Table…
A: A person who does not have a job but is actively looking for one and is prepared to start working…
Q: Now suppose that the insurance company expects that both healthy and unhealthy individuals buy…
A: Since it is mentioned to answer only parts d, e, and f of the solution, Only those parts are…
Q: Solve these demand and supply questions: The demand function for commodity x is q = 1, 000 − 10pd,…
A: Market equilibrium refers to a scenario at which the demand for the goods or services is equal to…
Q: How do changes in a company's financial statements impact its overall financial health and…
A: Financial statement is a kind of report that tells the complete transaction of company's finance…
Q: Some Special handling device can be 12000 is expected to have $600 salvage value at the end of its…
A: Note: Since you have posted a question with multiple sub parts, we will provide the solution only to…
Q: Classify each scenario based on whether it is an example of a compensating differential.…
A: The higher wage must be paid under perfect competition to compensate for the inconvenience caused or…
Q: The following graph shows the same PPF for Denali as before, as well as its initial consumption at…
A: Opportunity cost is the cost of producing one good in terms of other. Opportunity cost shows the…
Q: Your company has a customer who is shutting down a production line, and it is your responsibility to…
A: The reservation value of machine is $100,000. If the committed price is $200,000, then there is a…
Q: Casper consumes cocoa and cheese. Cocoa is sold in an unusual way. There is only one supplier, and…
A: Budget sets represent possible consumption points of two goods that the consumer can consume given…
Q: All question are with regards to the following set up. There are two firms A and B. Firms compete in…
A: Total revenue determines the amount earned from the quantity produced.Economic costs involve not…
Q: What are the top 10 countries by GDP/capita and what are their actual GDP/person numbers in USD$
A: It can be defined as the method which shows the average output of a particular economy in a given…
Q: Give typing answer with explanation and conclusion 3. Economic historian Angus Maddison…
A: GDP is value of all goods and services produced domestically during a given period of time . GDP per…
Q: In terms of what central banks can accomplish in the short and long run, what statement is most…
A: In the short run, central banks have a number of tools that they can use to influence the economy.…
Q: Give only typing answer with explanation and conclusion Given the following information, what…
A: Money supply refers to the total amount of money in circulation in the economy. There are different…
Q: 10. ABC Company purchased a hauling truck at a cost of Rs32000. The truck has a useful life of 8…
A: MACRS stands for "Modified Accelerated Cost Recovery System." It is a method of depreciation used…
Q: Which of the following asserts that the forward exchange rate is equal to the expected future spot…
A: A spot exchange rate is the current price at which a person could exchange one currency for another,…
Q: Possible scope for a banking crisis in South Africa (5/100).
A: A banking crisis refers to a severe disruption in the stability and functionality of a country's…
Q: Refer to Figure 7-19. At the equilibrium price, producer surplus is O a. $300. O b. $150. O c. $450.…
A: The difference between the market price and the maximum price a producer is willing to accept for a…
Q: Suppose an economy has an increase in labor input of 60 percent, while output has increased by 100…
A: Increase in labor input of 60 percentoutput has increased by 100 percentY = A K0.3L0.7
Q: The estimated short-run cost function of a Japanese beer manufacturer is 1.8 C(q) = 0.6q + 900 q
A: The functional relationship between cost and output is referred to as the "cost function." It…
Q: As we have discussed in class, there was a collapse in housing markets and financial markets in…
A: Long Run Aggregate Supply (LRAS) refers to the total amount of goods and services that an economy…
Q: Factors wich influence terms of trade
A: Trade implies the exchange of products and services between individuals, businesses, or countries.…
Q: An economy has full-employment output of 1000. Desired consumption and desired investment are given…
A: Full employment output (Y)=1000Desired consumption expenditure is given by Desired investment:…
Q: Suppose Portugal forms a customs union with France. The customs union results in the trade creation…
A: Germany and France supply gloves to Portugal at a price of $2 and $3, respectively. In the graph the…
Q: Explain the effects of an increase in fixed costs on the optimal levels of production. Draw shifted…
A: Optimal production levels are an essential variable in analyzing expenses, revenues, and…
Q: Suppose that you discount the future hyperbolically. Assume that both B and 8 are strictly greater…
A: The utility function refers to all those commodity bundles that derive the same amount of utility…
Q: Suppose that changes in bank regulations expand the availability of credit cards to that people can…
A: The Fed is the central bank of the united state of america (USA). Its main function is to maintain…
Q: Explain Keynesian policy for fighting unemployment and inflation.
A: Keynesian policies are a set of economic principles and strategies based on the ideas of economist…
Q: Suppose that changes in bank regulations expand the availability of credit cards to that people can…
A: The demand for money is the desired holding of financial assets in the form of money: that is, cash…
Q: QUESTION 1 Until recently, labor force participation rate of African-American women has the rate of…
A: The labor force participation rate refers to that percentage of the total population of an nation…
Q: Suppose that the Phillip's curve and Okun's law are given, respectively, by n=n² - (U-U") and…
A: In the realm of macroeconomics, understanding the interplay between inflation, unemployment, and…
Q: Suppose that the economy of Witland in the figure below is at full-employment equilibrium and the…
A: "As per our policy, we can provide you with the answer to the first three questions. Kindly raise…
Q: Question 1. Suppose a monopolist's production function is given by q = MIN(5L,K). The price of Labor…
A: A production function represents the relationship between inputs (such as labor and capital) and the…
Q: As manager of the St. Cloud Theatre Company, you have decided that concession sales will support…
A: Let the amount sold for break even be 'x ' Total Cost = Fixed Cost + Variable Cost Variable Cost =…
Q: Show on a graph of the AS-AD model of the economy how different fiscal and monetary policies impact…
A: Macroeconomic modeling will continue to be important since it dictates the speed and length of…
Q: Consider the market for loanable funds. Suppose the demand for loans is given by i= 100-3Q+π, and…
A: The demand for loans is given by The supply of loans is given by Here i represents the nominal…
Q: CHANGE FRC -12 -16 -20 Investment -24 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3…
A: In the above diagram consumption and investment, spending has given from 2000 - 08.
Q: 2. The market for EpiPens Consider the pharmaceutical company Mylan that produces epinephrine…
A: In economics, a market refers to a physical or virtual space where buyers and sellers interact to…
Q: in order to decrease the money supply, the Fed can Raise the reserve requirement, increase the…
A: The quantity theory of money states that the product of money supply and velocity is equal to the…
Q: How Many Pints of Blackberries? The pleasure you get from your first pint of freshly picked…
A: Making a decision using marginal analysis entails weighing the additional expense required by…
Q: $10 $20 $70 d. $80 Budget Constraint Slope--2/1 The graph above shows budget constraints comparing…
A: The budget constraint is the locus of all affordable consumption bundles at the given income of the…
Q: a. Fill in the blanks in the above table. b. How many units of labour will be employed, and what…
A: A monopsony is a market structure in which there is only one buyer for a product or service offered…
Q: QUESTION 2 The Australian Government in the 2015-16 financial year is set to spend $31.9 billion…
A: a. Kevin is not correct. Public goods exhibit non-excludability and non-rivalry which leads to…
Step by step
Solved in 3 steps with 3 images
- Draw the graph. If the monopoly is a price-discriminating monopoly charging some customers P1= $950 and other customers P2=$400, then: 1. At the price P1= $950, the monopoly will sell a quantity Q1 = ______ 2. At the price P2= $400, the monopoly will sell a quantity Q2 = ______. (Obs: calculation required here!)3. Total quantity sold at both prices is Q3 = Q1 + Q2 = ___________. 4. The profit earned from selling the quantity Q1 at P1 is Profit1 = ____________________(identify the area on the graph and calculate it).5. The profit earned from selling the quantity Q2 at P2 is Profit2= ____________________(identify the area on the graph and calculate it).6. The total profit earned by the price discriminating monopolist is Profit = Profit1 + Profit2 = _______.In terms of reality, could you show that it is easier for a firm to practice second-degree price discrimination than it is for a firm to practice first-degree price discrimination? If you can use a graph, that would help me understand thank you.What are the four most important ways a firm becomes a monopoly? Will a monopoly that maximizes profit also be maximizing revenue? Will it be maximizing output? Explain. Assume the graph below represents the market for a monopolist. What quantity will the monopolist produce, and what price will she charge? What will her total revenue, costs, and profit be at this production level? What will the deadweight loss for society be at this level of production? (Assume the MC curve is a straight line between the relevant points for this calculation.)
- What are the four most important ways a firm becomes a monopoly? Will a monopoly that maximizes profit also be maximizing revenue? Will it be maximizing output? Explain. Assume the graph below represents the market for a monopolist. What quantity will the monopolist produce, and what price will she charge? What will her total revenue, costs, and profit be at this level of production? What will the deadweight loss for society be at this level of production? (Assume the MC curve is a straight line between the relevant points for this calculation.) 3. U.S. antitrust laws are designed to prohibit monopolization and encourage competition. Why, then, does the government erect barriers to entry and create monopoly power by granting firms patents?Use the graph to the right for a monopoly to answer the questions. What quantity will the monopoly produce, and what price will the monopoly charge? The monopoly will produce 84 units and charge $ 3.4 per unit. (Enter numeric responses using real numbers rounded to two decimal places.) Suppose the government decides to regulate this monopoly and imposes a price ceiling of $2.60 (in other words, the monopoly can charge less than $2.60 but can't charge more). Now what quantity will the monopoly produce, and what price will the monopoly charge? The monopoly will produce units and charge $ unit. per ...) cost per unit Price and 4.80- 4.40- 4.00- 3.60- 3.20- 2.80 2.40- 2.00- 1.60- 1.20- 0.80 0.40+ 0- 0 MC 16 32 48 60 72 84 96 108 120 132 14. QuantityGraphically show a monopoly firm that currently sells 250 units of output at a price of $60/unit, where the marginal revenue of the 250th unit is $40, the marginal cost of the 250th unit is $50, and the average total cost at 250 units is $60. [Hint: Based on the information given, is the quantity you’re asked to show the profit-maximizing quantity? Think about what has to be true for profit-maximization.] Based on the graph and assuming the firm attempts to profit maximize (and succeeds), what would happen to price, quantity, MR, MC, and ATC? (rise, fall, or stay the same?)
- Professional football teams earn substantial revenues through ticket sales. (Note: each team is the only seller for the tickets). To maximize profit, they offer significantly lower ticket prices for children (whose demand is elastic) than those for adults (whose demand is inelastic). This discount may be as much as 50 percent. If this type of price discrimination increases revenue and profit, why don’t teams also price discriminate at the concession stands by offering half-price soft drinks and peanuts to children? Critically discuss.Give typing answer with explanation and conclusion Suppose that a monopolist whose marginal cost curve is MC(Q)=Q faces the demand curve P=10-2Q. What is monopolist's profit-maximizing quantity, profit-maximizing price, the total surplus (under monopoly profit maximization), also called the "monopoly market surplus," and if the monopolist can perfectly price discriminate, then deadweight loss equals...?On the monopoly graph, use the black points (plus symbol) to shade the area that represents the loss of welfare, or deadweight loss, caused by a monopoly. That is, show the area that was formerly part of total surplus and now does not accrue to anybody. Deadweight loss occurs when a market is controlled by a monopoly because the resulting equilibrium is different from the (efficient) competitive outcome. In the following table, enter the price and quantity that would arise in a competitive market; then enter the profit-maximizing price and quantity t would be chosen if a monopolist controlled this market. Market Structure Price (Dollars) Quantity (Gyros) Competitive Monopoly Given the summary table of the two different market structures, you can infer that, in general, the price is lower under a and the quantity is lower under a
- On the monopoly graph, use the black points (plus symbol) to shade the area that represents the loss of welfare, or deadweight loss, caused by a monopoly. That is, show the area that was formerly part of total surplus and now does not accrue to anybody. Deadweight loss occurs when a market is controlled by a monopoly because the resulting equilibrium is different from the (efficient) competitive outcome. In the following table, enter the price and quantity that would arise in a competitive market; then enter the profit-maximizing price and quantity that would be chosen if a monopolist controlled this market. Market Structure Price (Dollars) Quantity (Gyros) Competitive Monopoly Given the summary table of the two different market structures, you can infer that, in general, the price is higher under a and the quantity is lower under aWhat quantity will the above monopolist produce if it can first degree price discriminate? (Enter a number) How much consumer surplus do consumers get in the above graph if the monopolist first degree price discriminates? (Enter a number) If the monopolist first degree price discriminates, will the quantity produced by the monopolist be allocatively efficient? (Enter: YES or NO)The following graph gives the demand (D) curve for water services in the fictional town of Streamship Springs. The graph also shows the marginal revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve for the local water company, a natural monopolist. On the following graph, use the black point (plus symbol) to indicate the profit-maximizing price and quantity for this natural monopolist. ? PRICE (Dollars per hundred cubic feet) 40 36 32 28 24 20 16 opoly analysis 12 B 1 2 3 7 A QUANTITY (Hundreds of cubic feet) MR 4 ATC -MC- 0 10 D Monopoly Outcome