Refer to Figure 23-4. Suppose a single-price monopolist sells its product at the price P2₂. Profits are equal to O a. (P2-P1) times (q1 - 92). O b. (P2-P1) times q2. O c. This cannot be determined without the average total cost curve. O d. P₂ times q2.
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- How can a monopolist identify the profit-maximizing level of output if it knows its total revenue and total cost curves?Please no written by hand solutions 1. Assume the cost function for a monopolist is given by TC(q) = 30Q; the inverse demand function for the firms' output is p = 120 - Q, where Q is the total output. a. Find the profit-maximizing combination of price and quantity b. Estimate consumer surplus, producer surplus and the deadweight loss associated with this monopolist C. If this industry became perfectly competitive, explain and estimate the consumer surplus, producer surplus and deadweight loss of the industry d. Graph your answers for a, b, and c 2. Now assume that the monopolist above splits into two. Each of two firms has the cost function TC(q) = 30q. a. What are the firms' outputs in a Nash equilibrium of Cournot's model? b. Estimate the economic profits for each firm c. If firm 1 is the leader and firm 2 the follower, find the equilibrium outputs for the Stackelberg solution.Q18 Marginal revenue is less than price for a single-price monopolist because it... a. Charges a price higher than the unit production cost. b. Must worry about how its price setting will lead to entry by other firms. c. Must lower its price for all units if it wants to sell more of the product. d. Does not affect the selling price through its output decisions. e. Has achieved economies of scale.
- I need help with econ multiple hw questions asap! 79)If a monopolist is able to perfectly price discriminate, which outcome results? A. Consumer surplus and deadweight losses are transformed into monopoly profits. B. Consumer surplus is always increased. C. Total surplus is always decreased D. The price effect dominates the output effect on monopoly revenue 78)Long Ron Marginal Cou Long-Run Average Total Cost Love Star College-North Hants Iretructor Dr. rahim Abou Saad Demand Curve 02 Outpat (Q) Marginal Revenue Referring to the figure above for a profit-maximizing monopolist, which of the following output sizes represents the most productively efficient output that the monopoly regulators can enforce against this monopolist? (Hint: production efficiency increases when producing at a lower average cost) O Q1 Q2 Q3 Q4 Q5 Q6Based on the graph, what is the equilibrium price for this monopolist? 45 40 MC ATC 30 25 20 15- 10 MR 8. 10 12 14 16 18 20 22 26 Output O A. $30 O B. $16 OC. $20 O D. $12 24 4. Price and Cost ($)
- The existence of deadweight loss in a monopoly market demonstrates that a monopolist is: O A. facing a rising average total cost. Jm OB. not allocatively efficient. OC. not making a positive profit. OD. facing a rising marginal cost. ← PREVIOUS abmission APR 20 tv S A SUBMIT VIEW GRAQuestion 1 Please review the graph below. Based on image, this is a a Price P₁ 1 P. monopolistic competitive firm; P2 b natural monopoly; P2 с monopolistic competitive firm; P1 A natural monopoly; P1 QM and will charge a price of MR Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. F E to maximize their profits. ATC MC Demand Qc QuantityHow can a monopolist identify the profit-maximizing level of output if it knows its total revenue and total cost curves? A. The profit-maximizing level of output can be determined by comparing marginal revenue and total cost. B. Cannot be determined from this information C. The profit-maximizing level of output will be where there is the greatest difference between total revenue and total cost. O D. The profit-maximizing level of output will be where there is the smallest difference between total revenue and total cost.
- 2. If a monopolist's marginal revenue is $45 a unit and its marginal cost is $45, then: a. To maximize profit the firm should decrease output. b. To maximize profit the firm should O continue to produce the output it is producing. c. To maximize profit the firm should increase output. d. Not enough information is given to say what the firm should do to maximize profit.XYZ company uses a technology for producing its good. This enables the firm to meet the entire market demand at a lower price than its two competitors. What factor makes XYZ company a monopolist? O a. All of these O b. a legal barrier to entry. O c. Knowledge of exclusive production techniques O d. increasing average total costs.Determine the profit maximization point of a firm in a graph showing the dynamics of the Production and Cost Function. Supoose you are given this data of a monopolist. The price of the product is 35 pesos. 1. Compute for the- total cost, Average variable cost, marginal cost, total revenue, marginal revenue.2. Graph the schedule and answer the following question. - did the firm able to maximize its profit? If yes identify at what level (Quantity/output) or highlight the profit maximization point in the graph. If no, cite the reason why the firm was not able to maximize profit. Elaborate you explanation through you analysis on the Dynamics of the cost and output.