Suppose there are two classes of buyers in a market served by a monopolist. At this point the two classes are lumped together and the monopolist is currently producing the profit maximizing quantity based upon being a single price monopolist. Suppose that the monopolist perceives that its relevant market demand curve is given by the equation P = (40/3) –(2/3)Q and its MC = ATC = 4.Suppose this monopolist acts as a single price monopolist. Calculate the monopolist’s price, quantity, and profit given the above information.
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Suppose there are two classes of buyers in a market served by a monopolist. At this point the two classes are lumped together and the monopolist is currently producing the profit maximizing quantity based upon being a single price monopolist. Suppose that the monopolist perceives that its relevant market demand curve is given by the equation P = (40/3) –(2/3)Q and its MC =
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- Suppose a monopolist operates in a market with two types of consumers (“high” and “low” types) and offers two types of goods (“high quality” and “low quality”). In general, if the monopolist wants to implement second-degree price discrimination (i.e. to sell the “high quality” good to the “high” type consumer and the “low quality” good to the “low” type consumer), they may have to set the price of the “high quality” good lower than the willingness-to-pay of the “high” type.(a) True. (b) False.A firm is a profit-maximizing monopolist in the market of a patented computer software. As an economic analyst,you observe the following data:a) The monopoly’s price is set at $50 per copy.b) The monopoly’s total revenue is $300,000.c) The monopoly’s marginal cost at the profit-maximizing quantity is at $30 per copy.Based on the observed data, please determine the linear inverse demand function.Fill in the blanks. Suppose the inverse demand function is of the formwhere a, b are both positive constants, determine the value for a: 1 and b: 2 .Hint: a should be an integer, the answer for b should round to four decimal places.Assume a monopolist produces rum and knows there are two groups of rum consumers, 1 and 2, with different price elasticities. Group 1 is highly price elastic with E1=-10; Group 2 exhibits a lower price elasticity of E2=-2.5. Assume the company can separate these two groups (e.g., by handing out special ID cards) and can charge two different prices. If P2=$14, how much can it charge to Group 1?
- Suppose a monopolist faces two markets with demand curves given by D1(p1) = 200 -p1 D2(p2) = 100 -2p2 Assume that the monopolist’s cost function is c(y) = y^2 1. What is the optimal prices for the monopolist if it can charge different prices in these markets? 2. What is the optimal price if the monopolist must charge the same price in each market? 3. How much total consumers’ surplus changes between the two separate prices and the same price cases? Can I please be assigned an actual expert? The previous four answers have been incorrect. The last several questions I have asked have been plagued by mediocrity and poor answers.Suppose a monopolist faces two markets with demand curves given by D1(p1) = 200 -p1 D2(p2) = 100 -2p2 Assume that the monopolist’s cost function is c(y) = y^2 1. What is the optimal prices for the monopolist if it can charge different prices in these markets? 2. What is the optimal price if the monopolist must charge the same price in each market? 3. How much total consumers’ surplus changes between the two separate prices and the same price cases? Please answer this correctly, quickly,and legibly. This is my third submission of the same question. The first one was wrong and unredeemable the second one was not legible.Suppose a monopolist faces two markets with demand curves given by D1(p1) = 200 -p1 D2(p2) = 100 -2p2 Assume that the monopolist’s cost function is c(y) = y^2 1. What is the optimal prices for the monopolist if it can charge different prices in these markets? 2. What is the optimal price if the monopolist must charge the same price in each market? 3. How much total consumers’ surplus changes between the two separate prices and the same price cases?
- Consider a monopolist currently selling output Q to two different markets: Market A and Market B. This monopolist is able to price discriminate and charge different prices in these markets. Let QA and PA be the quantity and price in market A, and QB and PB be the quantity and price in market B. The monopolist is optimally choosing its prices and quantities, in order to maximize profit. The monopolist knows the price elasticity of demand in these markets, and knows that market À is more inelastic than market B. Consider each of the following three statements. What do we know for sure? 1) Regarding marginal revenues, we must have MRA > MRB 2) Regarding prices, we must have PA > PB 3) Regarding quantities, we must have QA > QBConsider a monopolist local movie theater which has two distinct client groups, adults and seniors. The inverse demands for the two group are given by:p(qA) = a − b · qAp(qB) = a/3-b/3.qB(a) Describe the demand function in the two markets graphically and then compute the demand elasticity in each market.(b) Compute the demand function qP under the assumption that the movie theather canonly offer a single price to both segments of the market. (Hint: at a given price addthe demand of the adults and senior market. You need to go from the inverse demand function to the demand function.) Illustrate the aggregate demand function in contrast to the demand functions in each segment. Now compute the optimal price of the movie theater when it can only offer a single and common price to the market segments. Who goes to the movies and who does not?(c) Next allow the movie theater to offer different prices in each segment and customerscannot mispresent their identity. What is the optimal price in…Consider a price discriminating monopolist facing two markets for its good. The demand equations faced by the monopolist and its cost function are:Market 1: Q1 = 55 – P1Market 2: Q2 = 70 – 2P2Cost Function: TC(Q) = 100 + 5Q, where Q = Q1 + Q2 a. If the monopolist can maintain the separation between the two markets, calculate the optimal output level that the firm should produce for each market to maximize profits.b. Determine the prices the monopoly should charge in each market, and calculate the profit of the monopoly.c. Construct a graph to represent your findings in item a and bd. If the monopolist cannot maintain the separation between the two markets, calculate the optimal output level and determine the price will this be sold?
- Suppose that a monopolist sells its product in two countries; Japan and Canada. The monopolist’s marginal cost is $60 and total fixed cost is $100. The direct market demand equations in the two countries are as follows:QJ = 200 − 2PJ and QC = 100 − 0.5PC;where the subscript J denotes Japan and the subscript C denotes Canada. Suppose that the monopolist cannot prevent resale, i.e, the monopolist must charge a single price for both countries.a) Derive the direct total market demand equation, QD = f(P).b) What would be the profit-maximizing quantity (Q*), price (P*), and profit (π*)? Please answer both a) and b). Thank you.A monopolist has a single customer with the demand curve P=20-Q. (So this customer will buy different quantities at different prices.) Suppose the monopolist’s marginal cost is MC=0. (And assume FC=0 to keep things simple.) The monopolist uses “standard” pricing, i.e., it sets a single price for all units that the customer buys. The graph below shows the demand curve and MC curve. Solve graphically for the price & quantity that will maximize profit for the monopolist. Shade the areas on your graph that represent consumer surplus and the monopolist’s profit.Consider a monopolist facing two consumers with the following two inverse demand functions: P=200-4Q1 and P=122- 6Q2. Assume that fixed costs are zero and that the marginal cost is equal to $8. a) Now assume the monopolist decides not to serve the low demand consumer. Solve for price, demand andmonopolist profits. Is the monopolist better off as a result of eliminating the low-volume consumer from themarket?
