Gargantuan Enterprises has a monopoly in the production of antimacassars. Its factory is located in the town of Pantagruel. There is no other industry in Pantagruel, and the labor supply equation there is W = 10+0.1L, where W is the daily wage and L is the number of person-days of work performed. Antimacassars are produced with a production function, Q = 10L, where L is daily labor supply and Q is daily output. The demand curve for antimacassars is P = 66 − Q/900, where P is the price and Q is the number of sales per day. The firm's profit-maximizing output is closest to: 15,400 antimacassars. Please explain step by step how we found 15,400.

Let us consider an economic sector characterized by the following data. The (inverse) demand function is p = 20 -2q with q the quantities produced by the firms in the sector and p the price. The total cost of production for any firm in the sector is: CT(q) = q* - 4g + 5 a) Firm 1 seeks to deter the entry of another firm, firm 2, into its market through a sustainable monopoly strategy. Calculate the equilibrium price, quantity and profit of firm 1 given this strategy Answer: Price set will be equal to marginal cost. P = MC MG = 29- 4 Putting this into demand function we get: 2q-4 = 20 - 29 q* = 6 (Quantity produced to deter competition) Putting this into demand function: p* = 8 (Price charged to deter competition) Firm 1 has failed to deter entry into its market. So, we now have a situation of non-cooperative oligopoly, with firm 2 having the same total cost as firm 1. The market quantity is such that q = q1 + q2 I) It is assumed that both firms 1 and 2 compete on quantity by making…

Based on market research, a film production company in Ectenian obtains the following information about the demand and production costs of its new DVD:Demand: P = 1,000 – 10QTotal Revenue: TR = 1,000Q – 10Q2Marginal Revenue: MR = 1,000 – 20QMarginal Cost: MC = 100 + 10Qwhere Q indicates the number of copies sold and P is the price in Ectenian dollars.d. Suppose, in addition to the costs above, the director of the film has to be paid. The company is considering four options:i. A flat fee of 2,000 Ectenian dollarsii. 50 percent of the profitsiii. 150 Ectenian dollars per unit soldiv. 50 percent of the revenueFor each option, calculate the profit-maximizing price and quantity. Which, if any, of these compensation schemes would alter the deadweight loss from monopoly? Explain

Your mom is the monopoly supplier of jokes in (humorless) Ho Hum. She faces a demand curve and a marginal cost curve given by following equations Demand: Q = 100 – 0.19P jokes per day Marginal Cost: MC= 80 dollars per joke Assume that jokes are perfectly divisible.

A monopoly produces widgets at a marginal cost of $10 per unit and zero fixed costs. It faces an inverse demand function given by P = 50 - Q. What is the profit under monopoly?

An industry has the following cost function: C(X, Y ) = 1500+20X +20Y . Market demands for the 2 goods are given by PX =80−X, and PY =140−2Y Suppose the government wished to use two part tariffs in these markets, and suppose further that two part tariffs are feasible. Imagine that there are 10 consumer in each market. Solve for a set of two part tariffs (one for each martket) that pay the firm zero profits in total, yet achieves efficiency.

Suppose the profit maximizing firm sells the same good in two individual markets that it is able to keep separate. Since the price elasticity of demand is different in each market, the firm recognizes that rather than charge all customers the same price, it can increase profits by charging different prices in each of the two markets. The demand equations for each market are shown below: Market 1 P=25-2Q Demand The firm's Total Cost Function is: TC=5Q a) What is the optimal output in Market 1? b) What price will be charged in Market 1? Market 2 P=15-Q c) what is the optimal output in market  d) what price will be charged in market  e) what is the firm's total profit  f ) illustrate your answer

In the astrology market there are n astrologers offering the telephone service "I can read your stars", whose demand can be represented by the function Q = 1000 – 2p, where Q is the number of calls and p the price of each call (we assume all calls last the same amount of time and they have a fixed price). Marginal costs per calls of each fortune teller are identical and constant, c = 1. Consumers perceive all astrologers as having the same reliability as they all look at the stars with their own eyes. Thus, consumers will consult the astrologer offering the lowest price. If all astrologers offer their service at the same price they share the market equally. Calculate the price, and the total number of astrologers in the market if the competition among astrologers takes place 'a la Bertrand. (a) p = 0.9; Q = 998. (b) p = 1; Q = 990. (c) p = 1.5; Q = 997. (d) All the other solutions are wrong. Astrologer A have hear of a brilliant astronomer named Galileo who is about to be killed for…

Based on market research, a film production company in Ectenia obtains the following information about the demand and production costs of its new DVD: Demand: P= 1,200 - 10Q Total Revenue: TR = 1,2000 - 10Q Marginal Revenue: MR 1,200 - 200 Marginal Cost: MC = 300 + 100 where Q indicates the number of copies sold and Pis the price in Ectenian dollars. Complete the following table by finding the price and quantity that maximize the company's profit and the price and quantity that maximize social weifare. Price Quantity Scenario (Dollars) (DVDs) Maximizes the company's profit Maximizes social weifare The deadweight loss from the monopoly is S Suppose, in addition to the foregoing costs, the director of the fim has to be paid. The company is considering four options:

Suppose there is a monopoly in a market with the cost function: TC = 2+Q2. The demand function in this market is Q = 12 – 2P. (1) What quantity should the monopoly produce to maximize its profit? (2) What price the monopoly should charge to maximize its profit? (3) What is the maximum amount of profit that the monopoly can get in this market?