Homework Answered Due Today, 9:35 AM In a monopoly market, the magnitude of demand elasticity at quantity of 10 units is El=1.2. What happens if the monopolist EXPANDS output to 11 units? Pick the most accurate answer. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. Total Revenue increases. d Total Revenue decreases but Marginal Revenue increases. Total Revenue decreases and Marginal Revenue is negative. Profit increases. Answered FE013 De Resubmit

Homework Answered Due Today, 9:35 AM In a monopoly market, the magnitude of demand elasticity at quantity of 10 units is El=1.2. What happens if the monopolist EXPANDS output to 11 units? Pick the most accurate answer. Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. Total Revenue increases. d Total Revenue decreases but Marginal Revenue increases. Total Revenue decreases and Marginal Revenue is negative. Profit increases. Answered FE013 De Resubmit

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter9: Monopoly

Section: Chapter Questions

Problem 20RQ: How can a monopolist identify the profit-maximizing level of output if it knows its total revenue...

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Question Maxin Suppose a monopolist could charge a different price to every customer based on how much he or she were willing and able to pay (versus charging the same price to all their customers). How would this affect the monopolist's profits? Why? Description Answer eacho Use the editor to format your answer 10 Roints
What economic formula or graph does the Anti-Trust Department follow before they decide to break up a monopoly? Multiple Choice They look to see if MC=MR is beyond $10 billion. They try to calculate if price elasticity is less than .25 and inelastic. They do not use any commonly known formulas or graphs. Often times it is based on normative economics and/or it could be politically motivated. The number of registered consumer complaints must be beyond 10,000.
Is a monopoly always undesirable? use diagram support your answer
In Karachi Nuplex Cinema has a monopoly on the rights to show movies throughout the city. The monopolist knows the price elasticities of demand for movies by children and adults which are 4 and 0.22 respectively. Suppose the monopolist can charge different prices for the children and adults. Explain why the monopolist can charge different prices. Explain for whom shall the monopolist charge higher prices and why. Draw graph to support your answer.
2 A monopoly sells its goods in the United States, where the elasticity of demand is -2, and in Japan, where the elasticity of demand is -5. Its marginal cost is $10. At what price does the monopoly sell its goods in each country if resale is impossible?
Question 4 Think a price making firm (monopolist) with a downward-sloping demand curve is one with a price elasticity of demand equal to-1. This is illustrated in the following diagram. P=AR 20 Expenditure stays the same as price changes TR AR = = Q d (TR) dQ Slope = b/Q 40 100 Diagram 5 Unit elastic demand (Pe=-1) MR = As price and quantity change by the same proportion, total revenue is the same at each price (the TR curve is horizontal). This gives the following TR, AR and MR equations: TR=b b -D (AR) Q = 0 Q As TR is constant at all outputs, so MR must equal zero. In diagram 5, what is the value of b in equation TR=b?
ASAP PLZ Suppose a monopolist knows it has two types of customers. The inverse demand for the customers in the first market is P = 50 – Q while the inverse demand for the customers in the second market is P = 40 – 2Q. The marginal cost is €10 in both markets. Suppose the firm wishes to charge a two-part tariff to its customers but it cannot distinguish between the customers in the first and second markets. Calculate the entry (fixed) fee that the firm should charge in these circumstances
The below graph represents a monopoly market, a quantity where Elasticity >1 is (enter whole numbers) $ 10 9 3 17 6 3 4 1 0 Elasticity > 1 Market (Draw your graph in here) Elasticity 1 Elasticity 1 Quantity 10
Price Quant ity Total Cost 2.000 1.600 1,800 2. 1,800 1,600 2000 For the Monopolist find the TR when the 3rd output is produced. Selected Answer: 2.000 Question 5 Total Cost 1.600 1.800 2.000 Price Quantity 2.000 1,800 1,600 What would be the profit for the monopolist if he choose to produce 2 units of the good? Selected Answer: 1,600 Question 9 If TR= 2+3Q^2, then MR is:
Exercise A.6 A monopolist facing the demand curve Q = 42 – 0.6P operates with constant average and marginal costs equal to 20. a) Calculate the quantity, price and profit obtained by the monopolist. Represent graphically. (b) What quantity, what price and what benefit will you get if you can apply first-degree price discrimination? Calculate the consumer surplus and represent graphically. c) The monopolist warns that he can separate consumers into two distinct groups with demands Q1 = 12 - 0.1P1 and Q2 = 30 - 0.5P2. Calculate the quantities, the prices you will set in each market, and the profit you will make. Represent graphically.
Exercise A.3 Compare the competitive equilibrium with that of the first-degree price discriminating monopolist. Indicate the similarities and differences that exist in prices, quantities produced, consumer surplus and loss of efficiency between both situations. Represent graphically assuming that the marginal cost is constant
Refer to the graph shown of a profit-maximizing monopolist: $100 $90 MC $80 $70 $60 $50 Price, cost, revenue D 7000 14000 21000 12000 Question: What is the monopolist's economic profit(loss) at the profit-maximizing level of output? O-$280,000 O $0 $140,000 $840,000 O -$140,000 0 /AC MR