Price (dollars per bottle) 10 8 6 4 2 0 Quantity demanded (bottles per hour) 0 1 2 3 4 5 5. a. Calculate Minnie's total revenue schedule. b. Calculate its marginal revenue schedule.
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- Hot Air Balloon Rides is a single-price monopoly. Columns 1 and 2 of the table set out the market demand schedule and columns 2 and 3 set out the total cost schedule. P (dollars per ride) Qd (rides per month) TC (dollars per month) 220 200 1 160 180 260 160 380 140 4 520 120 5 680 a. Construct Hot Air's total revenue and marginal revenue schedules. (and marginal cost schedule.) b. Draw a graph of the market demand curve and Hot Air's marginal revenue curve. c. Find Hot Air's profit-maximizing output and price and calculate the firm's economic profit. d. If the government imposes a tax on Hot Air's profit, how do its output and price change? e. If instead of taxing Hot Air's profit, the government imposes a sales tax on balloon rides of S30 a ride, what are the new profit-maximizing quantity, price, and economic profit?O Macmillan Learning The accompanying graph depicts a hypothetical monopoly. Follow instuctions 1-3 below to identify the monopoly's profits. 1. Place point E at the monopoly's profit maximizing price and quantity. 2. Move the average total cost (ATC) curve to a position that depicts the monopoly earning a positive profit. 3. Place the area labeled Profit in the area of the graph that represents the monopoly's profit. Price ($ per unit) 10 9 8 7 6 5 3 2 1 0 0 1 E K MR 2 3 4 5 6 Quantity (millions of units) 7 MC 8 D ATC 9 10 Profit10. Examine this information for a monopoly product. Price Quantity SR10.00 1000 8.00 2000 6.00 3000 4.00 4000 2.00 5000 .5 6000 a. Calculate total revenue. b. Calculate marginal revenue. c. What is the maximum output that the producer of this product would ever produce? d. Why would this firm never produce more than the output amount in part (c)? С.
- Ⓒ Macmillan Learning The accompanying graph depicts a hypothetical monopoly. Follow instuctions 1-3 below to identify the monopoly's profits. 1. Place point E at the monopoly's profit maximizing price and quantity. 2. Move the average total cost (ATC) curve to a position that depicts the monopoly earning a positive profit. 3. Place the area labeled Profit in the area of the graph that represents the monopoly's profit. Price ($ per unit) 10 9 8 7 5 3 2 1 0 0 1 O X E MR 2 3 4 5 6 Quantity (millions of units) 7 MC 00 D 9 ATC 10 ProfitC Answer the next question(s) Demand Data Price $5.50 5.00 4.50 3.85 3.35 2.90 2.50 Quantity demanded C. $3.35. D. $4.50. 5769CAW 4 8 on the basis of the following demand and cost data for a pure monopolist: Cost Data Output 3456789 Total cost $5 6 6.50 7.50 9 11 14 38. Refer to the above data. The profit-maximizing price for the monopolist will be: A. $5.00. B. $2.90.Suppose that Comcast has a cable monopoly in Philadelphia. The following table gives Comcast's demand and costs per month for subscriptions to basic cable (for simplicity, we keep the number of subscribers artificially small). Price 51 48 45 42 Quantity 3 4 5 6 7 8 Total Revenue 153 192 225 252 273 288 Marginal Revenue A. Comcast should produce 6 units in the short run and shut down in the long run. O B. Comcast should shut down in the short run and produce 6 units in the long run. C. Comcast should shut down in the short run and in the long run. O D. Comcast should produce 6 units in the short run and in the long run. O E. None of the above. 39 33 27 21 15 Total Cost 108 129 153 180 210 243 Marginal Cost - 21 24 27 30 33 39 36 Suppose the local government imposes a $73 per month tax on cable companies. What will Comcast do? (Assume fixed costs equal $45.) Suppose that the flat per-month tax is replaced with a tax on the firm of $12 per cable subscriber. (Assume that Comcast will sell…
- Price (Dollars per Garment) 7 D E 5 АС-МC Demand Marginal Revenue 20 Garments cleaned per year (millions) The long run average and marginal cost of dry-cleaning services is $5, as shown in the graph. Given the demand curve and the marginal revenue curve shown in the graph, which of the following is true? Select one: O . If the industry were served by a profit-maximizing monopoly, the price of dry-cleaning services would be $7 per garment. Ob. If the industry were perfectly competitive, 10 million garments would be cleaned each year. If the market were served by a profit-maximizing monopoly, the price of dry-cleaning services would be $5 per garment and monopoly economic profit would be zero. O d. If the industry were perfectly competitive then the long-run equilibrium price of dry-cleaning services would be $7 per garment.3 13 out of question The graph below shows the demand, revenue and cost curves for a monopoly operating in the short run. Use the graph to answer the questions that follow: Price and costs (dollars per unit) 5 4 3 لیا 2 0 20 MC 40 MR 60 80 100 120 Quantity (units per day) What is the consumer surplus given change from monopoly to perfect competitor? ATC DChapter 9 - Monopoly OPEN The table below shows cost data for producing different amounts of cleaning products. Suppose the market is a monopoly. Use the information in the table to find the missing data for each quantity. Marginal Revenue in $ B O Ei MUND Price in $ Quantity Total Revenue in $ 9- 20.00 16.00 13.00 12.00 8.00 5.00 0 3 a 12 15 a hp $09 Wel $ 4 9. I am finished 4:34 PM 10/16/2022 88°F ^ @ 4)) 易
- Bob's Brewery has a monopoly and can sell 100 cases of beer for $40 each, or 101 cases for $39 each. What is the marginal revenue of the 101st case?Select one:a. -$61b. $61c. -$39d. $3944. Which of the following statements about a monopoly is FALSE? a. A monopoly has many suppliers of the good. b. None of these c. Monopolies have barriers to entry or exit. d. The good produced by a monopoly has no close substitutes.13. A monopoly’s price is $20. At this price the absolute value of the elasticity of demand is 2. What is the monopoly’s MC?