unregulated natural monopoly bottles Liquid Sunlight, a unique product with no substitutes. The monopoly's total fixed cost is $190,000 and its marginal cost is 30 cents a bottle. How many bottles of Liquid Sunlight does the monopoly sell and what is the price of a bottle of Liquid Sunlight? Is the monopoly's use of resources efficient?
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- 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 10 MC Profit 7 ATC 4. 3 2 1 MR 0 4. 1 3 7 Quantity (millions of units) 10 LO et LO Price (S per unit)Review the graph at right. Monopoly What is the unregulated monopoly price? $ (enter your response as a whole 100- number) 90- MC What is the unregulated monopoly output? (enter your response as a whole 80- number) 70- PES00 60- The total unregulated welfare (CS + PS) is $. (round your answer to the nearest penny) 50 40- tMicEs3d 30- What is the optimal monopoly regulated price? $ (enter your response as a whole number) 20- The total regulated welfare (CS + PS) is $. (round your answer to the nearest penny) 10- Q=3 MR 40 50 60 Quantity 20 30 70 80 90 100 10 tv 20 MacBook Air S0 DII F2 F3 F4 F5 F6 F8 F9 @ # $ & 1 2 3 4 5 8 9 Q W E Y | A S D F G H K C V B N M Fon commandWhen does a company officially become a monopoly? a. when it controls more than 25 percent of the output of a certain product b. when the government decides the company is a threat to the national economy c. when a company controls the output for a marketable product without meaningful competition d. when a company controls more than 50 percent of the output of a product
- An unregulated natural monopoly bottles Elixir, a unique product with no substitutes. The monopoly's Ktotal flaxed cost is $150,000 and its marginal cost is 20 cents a bottle. How many bottles of Elixir does the monopoly sell and what is the price of a bottle of Elixir? is the monopoly's use of resources efficient? CELL The graph shows the demand curve for Ex Draw the marginal revenue curve. Label it MR Draw the marginal cost curve. Label it MC. Draw a point at the monopoly's profit-maximizing quantity and price Elixir sells million bottles a year and the price is cents a bottle >>>Answer to 2 decimal places The firm produce the efficient quantity because OA does not marginal benefit equals marginal cost OB. does not marginal benefit exceeds marginal cost OC does; marginal revenue equals marginal cost OD does, marginal benefit equals marginal cost 604 00- 40 30+ 20 304 Price and cost (cents per bottle) D Quantity (millions of bottes per year) > Draw only the objects specified in the…Google dominates online search options and advertising. Some contend Google is a monopoly. First, consider competition and answer these questions: Is Google protected by a barrier to entry, and If so, which barrier(s)? Is there a viable substitute for Google? Second, consider whether Google is a monopoly or not. How does Google’s control of the market influence market price and market quantity? If Google is a monopoly, how would breaking up affect the market price and market quantity? How do we test these hypotheses?Review the graph at right for a monopoly market (enter all of your responses as whole numbers). How much is the consumer surplus? $ 450 How much is the producer surplus? $ 1350 How much is the deadweight loss? $ 225 Monopoly total surplus is $ A *** 80- 160 60**** 30- 10- 0- Price 0 MC MR D 10 20 30 40 50 60 70 80 90 100 Quantity
- Draw the graph. If the monopoly is a single price monopoly then: the monopoly produces a quantity Q = ______ where ________________ (which curves intersect?) the monopoly charges a price of P = ________ the consumer surplus is CS = ______ (identify the area on the graph and calculate it). the producer surplus is PS = _________(identify the area on the graph and calculate it). the deadweight loss of the monopoly (as compared to perfect competition) is DWL = ______ (identify the area on the graph and calculate it).The table below shows cost data for producing different amounts of cleaning products. Suppose this market is a monopoly. Use the information in the table to find the output where the monopoly would maximize profit. Price ($) Quantity Total Revenue ($) Total Cost ($) 150 0 0 100 120 5 600 180 100 10 1000 400 90 15 1350 675 80 20 1600 1120 70 25 1750 1750 Profit maximizing quantity: What is the profit the monopoly achieved? $Suppose that Eric has a Magazine monopoly. The following table gives Eric's demand and costs per month for subscriptions to basic cable: Price Quantity Total Revenue Marginal Revenue Total Cost Marginal Cost $27 3 $56 26 4 73 25 5 91 24 6 110 23 7 130 22 8 151 a. If Eric wants to maximize profits, what price should it charge, and how many Magazine subscriptions per month should it sell? How much profit will Eric make? Suppose the local government imposes a $45 per month tax on Magazine companies. b. What price should Eric now charge, and how many subscriptions should it sell? What will its profits be?
- Is a monopoly still subject the laws of supply and demand? How can it use these laws to its advantage?Consider the local telephone company, a natural monopoly. The following graph shows the demand curve for phone services, the company's marginal revenue curve (labeled MR), its marginal cost curve (labeled MC), and its average total cost curve (labeled AC). (Hint: Click a point on the graph to see its exact coordinates.) PRICE (Dollars per month) 160 140 120 100 80 60 40 20 0 0 1 MR 2 3 4 567 QUANTITY (Thousands of households per month) AC MC D 8 (?)What is the main issue in an monopoly Market. Is Google a monopoly?