Suppose a monopolist faces a demand equation given by P=20-Q, and a marginal revenue equation given by MR = 20-2Q, and MC=AVC=ATC=$6. What is the deadweight loss associated with the monopolist? a) $8.5 b) $33.25 c) $24.5 d) $12.5
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Suppose a monopolist faces a demand equation given by P=20-Q, and a marginal revenue equation given by MR = 20-2Q, and MC=
a) $8.5
b) $33.25
c) $24.5
d) $12.5
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- A monopolist has a cost function given by c(y) = y2 and faces a demand curve given by P(y) = 120 − y. a. What is his profit-maximizing level of output? What price will the monopolist charge? b. Suppose you put a lump sum tax of $100 on this monopolist. What would its output be? c. If you wanted to choose a price ceiling for this monopolist so as to maximize consumer plus producer surplus, what price ceiling should you choose? How much output will the monopolist produce at this price ceiling?The graph above shows the demand curve (D), marginal cost curve (MC), average cost curve (AC), and marginal revenue curve (MR) for a monopolist. a) What is the profit maximizing quantity and price for the monopolist? b) If this is a perfectly competitive market, what is the equilibrium quantity and price? c) What area represents the deadweight loss caused by the monopolist?1. A firm faces the following inverse demand curve: P = 500 - 0.25Q Where: Q is the monthly production P is price, measured in dollars per unit. The firm also has a total cost (TC) function of: TC = 200Q. Assuming the firm maximizes profits, answer the following: a) Assuming the firm operates as a monopolist, calculate the following: price, quantity, and profit. Graph and show the equilibrium price and quantity. b) Assuming perfect competition, what are price, quantity and profit? Show on the graph from above.
- 1) A monopolist faces a demand curve Q = 600 – 10P and has the total cost curve TC(Q) = 200 + 20Q + 2Q². What is the monopolist's marginal revenue and marginal cost? What is the profit-maximizing price and quantity? What is the maximized profit?Consider the diagram below: a) If a firm is single –price monopolist, what price firm will charge and what is the profit maximizing output? Calculate the area of monopolist’s profit (in tk), consumer surplus (in tk) and deadweight loss (in tk) from the information of the diagram. b) If the firm would work as a perfectly price discriminating monopolist, what amount of output firm would have produced? How firm would have charged price? Calculate the area of consumer surplus (in tk), profit(in tk) and deadweight loss (in tk) from the information of the diagram. Don,t copy from anywhere. Answer must be correct.Do all answer.The following table shows demand and marginal cost for a monopolist. Calculate marginal revenue (MR) at each quantity. (Enter your response as an integer.) Output (units) (Q) Price per Unit (P) 20 Marginal Revenue (MR) Marginal Cost (MC) -- -- 1 18 18 2 2 16 14 3 14 10 6 12 6 8 10 2 10 A profit-maximizing monopolist will produce units and set a price of $
- Using the following data, calculate the profit-maximizing quantity and price. Find the average total cost and use this to write out the equation for the firm’s profit. Market demand for monopolist’s product: P = 100 – Q Marginal revenue for monopolist: MR=100-2Q ATC for monopolist: ATC = 5 + 1/2Q MC for monopolist: MC = 20 + 3 QSuppose you are a monopolist in the market for a specific Q video game. Your demand curve is given by P = 80- - and 2 your marginal cost curve is MC = Q. Your fixed cost is $400. i) Derive the marginal revenue curve. ii) Calculate the equilibrium price and quantity. iii) What is the profit?The data below relate to a monopolist and the product it produces. What is the profit-maximizing output and price for this monopolist? Quantity Price per Unit Total Cost 0 $22 $20 1 $20 $24 2 $18 $27 3 $15 $32 4 $14 $40 5 $12 $49 6 $10 $59 a.) Q=2 : P=$18 b.) Q=3 : P=$15 c.) Q=4 : P=$14 d.) Q=5 : P=$12
- The table shows the demand schedule of a monopolist. Calculate marginal revenue and fill in the revenue column in the table. Assume that output can only be sold in integer amounts (i.e., 11 unit, 22 units, etc.). Once you have filled in marginal revenue, identify the quantity produced by the monopolist in this market. Quantity Price Marginal Marginal Cost Revenue 1 $13 $3 MR1 2 $12 $4 MR2 3 $11 $5 MR3 4 $10 $6 MR4 $9 $7 MR5 6. $8 $8 MR6 How many units does the monopolist produce? Quantity:14.22. A monopolist has a cost function of c(y) = y so that its marginal costs are constant at $1 per unit. It faces the following demand curve: 0, D(p) = { 100/p if p 20; (a) What is the profit-maximizing choice of output? (b) If the government could set a price ceiling on this monopolist in order to force it to act as a competitor, what price should they set? (c) What output would the monopolist produce if forced to behave as a competitor?Suppose a monopolist faces the demand curve P = 120 - 2Q, has marginal cost curve MC = 2Q, and zero fixed costs. If the monopolist can perfectly price discriminate, which of the following is true? The monopolist sells 30 units at a profit of 1800. The monopolist sells 17 units at a profit of 1460. The monopolist sells 30 units at a profit of 900. The monopolist sells 17 units at a profit of 730.
