The demand curve faced by a monopolist is: P = 120 - 3Q. The marginal cost curves in factory 1 and factory 2 are respectively as follows: MC1 = 10 + 20Q₁ MC₂ = 60 +5Q₂ What is the equilibrium price? Answer Choices: a. 99. b. 100. c. 101. d. 102.
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- The demand equation for a monopolist is given by P = 50 - 2Q and the marginal cost is $10. i Compute the deadweight loss associated with monopoly pricing. ii. If P = 50 - 4Q, what is the deadweight loss? iii. Based on your answers to (a) and (b), how is the deadweight loss related to the slope of the demand curve?Will the monopolist produce an output level that is allocatively efficient?The diagram below shows a monopolist’s marginal cost scheduleand the demand curve. Find and depict the following items within the diagram and briefly explainhow you found them: a) The efficient (i.e., total surplus maximising) quantity. b) The monopolist’s profit maximising quantity. c) The monopolist’s profit maximising price. d) The monopolist’s optimal profit. e) The deadweight loss.
- You are the manager of a monopolist. Assume that the demand curve of the firm is linear, and the marginal cost is a fixed constant. a. Graphically illustrate the profit-maximizing output and price set by the monopolistic firm. b. If the government set a tax of $t per unit sold, graphically illustrate how the output and price of the monopolist’s profit maximization will change?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...?Give typing answer with explanation and conclusion A monopolist faces market demand given by P = 1000 – 10Q. For this market, MR = 1000 – 20Q, MC = 100 + 10Q and ATC = 100 + 5Q. If the monopolist does not price discriminate, what is the value of consumer surplus?
- What 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 picture below depicts the market demand and average variable cost curve for a monopolist. Which point or points will the monopolist NEVER CHOOSE? $ AVC A B C Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a A and B B A and C. Cannot say without the average total cost curve. b с d Market Demand QSuppose a monopolist faces a market demand curve Q = 50 - p. If marginal cost is constant and equal to zero, what is the magnitude of the welfare loss? If marginal cost increases to MC = 10, does welfare loss increase or decrease? Use a graph to explain your answer.
- Hi! I got stuck with my microeconomics homework. Can you please help? Here's the problem: A monopolist knows that in order to expand the quantity of output it produces from 8 to 9 units it must lower the price of its output from $2 to $1. Calculate the quantity effect and the price effect. Use these results to calculate the monopolist’s marginal revenue of producing the 9th unit. The marginal cost of producing the 9th unit is positive. Is it a good idea for the monopolist to produce the 9th unit? It is from Microeconomics: Canadian Edition by Paul Krugman; Robin Wells; Iris Au; Jack ParkinsonSuppose a monopoly has a cost curve equal to C= 6400 + 100a. The firm's demand curve is p= 500 - 4Q. (Round all nurmeric responses to two docimal places.) What is the monopoly's unregulated profit-maximizing quantity? What is the unregulated profit-maximizing price? $. What is the monopoly's profit? $ What would be the deadweight loss? 5Hot 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. Now suppose that the government places a fixed tax on Hot Air's profit of $40 a month. Calculate Hot Air's new profit-maximizing output and price. When Hot Air is producing its new profit-maximizing output, the number of rides it produces is a month and the profit-maximizing price of a ride is $ >>> Answer to 1 decimal place. CH Price (dollars per ride) 150 140 130 120 110 100 Quantity (rides per month) 0 1 2345 Total cost (dollars per month) 50 175 310 455 610 775