Which of the following is true about the effect of monopoly power on surplus? choose from answers below (Hint: monopoly entails a higher price as compared to the normal competitive equilibrium price and quantity) Group of answer choices a. Consumer and producer surplus stays the same. b. Some of the consumer surplus goes to the producer as profit under monopoly power. c. Some of the producer surplus becomes a part of the consumer surplus under monopoly power. d. None of the above.
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Which of the following is true about the effect of
(Hint: monopoly entails a higher price as compared to the normal competitive
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- What is meant by consumer surplus and producer surplus? Using a diagram show that there is a deadweight loss to society from monopoly in terms of total surplus.Use the graph to answer the questions: A. Find the point (A,B,C,D, or E) that corresponds to the profit maximizing price and profit quantity. B. Which number corresponds to consumer surplus on the graph? C. Which number corresponds to producer surplus on the graph? Which number corresponds to deadweight loss on the graph?Tecky Corp is a monopoly in the market of product Y. Suppose you are the marketing manager of Tecky Corp. You have gathered some information about product Y and the cost of Tecky Corp. as shown in the table below. Total cost $ Unit Price $ Total revenue $ Quantity 300 1 680 680 430 560 1,120 592 440 1,320 3 792 4 370 1,480 1,024 1,400 280 1,304 1,260 210 1,626 1,050 150 2,025 100 800 2,432 You are in a meeting with the CEO of Tecky Corp. The CEO asks the following question A. during the meeting: "We should be able to get more revenue as we sell more units. I see the total revenue rises from the quantity of 1 to 4. However, why does the total revenue start falling from the quantity of 5 onward?" Explain to the CEO why this is the case.
- The table below depicts the revenue for the only restaurant in a small rural town. It costs the restaurant $6.50 to prepare each meal. Use the table to answer questions. Quantity Price Total Revenue Marginal Revenue Total Costs Marginal Costs Economic Profit/Loss 0 $8.00 1 $7.50 2 $7.00 3 $6.50 4 $6.00 5 $5.50 What price should the restaurant charge if it wants to maximize the total economic surplus? (i.e. What level of output would achieve allocative efficiency? At this level of output what is the economic profit for the restaurant?1. You decide to begin selling widgets. You know that the demand for widgets is given by P = 40 – 0.5Q and that you face increasing marginal costs, where MC = 7+ 0.1Q. a. When you begin selling, you cannot price discriminate. What is your profit maximizing price and output? b. At the profit maximizing price and output, calculate consumer surplus, producer surplus, and deadweight loss (if any). c. Assume you become a good enough sales person to perfectly price discriminate. What will be the new level of output? d. At this new level of output, calculate consumer surplus, producer surplus, and deadweight loss (if any).The second column shows Shane’s marginal value schedule, which is also his demand schedule when he is offered a single price and can buy as many donuts as he wants at that price. The third column shows Miriam’s marginal cost schedule. Answer the following questions, and include a couple of sentences providing an explanation for your answer. If Miriam can charge a different price for different quantities, and if she is trying to maximize her producer surplus how many donuts will she sell? Does your answer to (a.) violate our result that profit is maximized by setting the quantity where marginal revenue equals marginal cost?
- Assume the market for headbands is characterized by a downward sloping demand curve and an upward sloping supply curve. Suppose there is an improvement in technology for producing headbands. Which of the following would occur? A C E The total surplus (sum of producer and consumer surplus) would increase B The change in equilibrium price would cause total producer surplus to increase D The impact on total consumer surplus would be indeterminate, because of the offsetting impact of the changes in equilibrium price and quantity The supply curve would shift up, resulting in an increase in the equilibrium quantity and total producer surplus The demand curve would shift right in response to an increase in equilibrium price https://bcps.schoology.com/common-assessment-print/course/6305214264/6083116066?multipleQuestions=1&includeAnswerkey=1&includeBlank 10/33The graph shows the supply curve of smart watches and the market price of a smart watch. Draw the producer surplus from smart watches. Label it. What is producer surplus? Producer surplus is OA. equal to the value that the seller places on the good, summed over the quantity sold OB. received by a producer when price exceeds the marginal cost of production OC. the value of the good minus its marginal cost, summed over the quantity sold D. the marginal benefit received by a producer, summed over all the units sold 500+ 400- 300- 200- 100+ 0- Price (dollars per smart watch) S-MG 0 Market price 1 4 5 6 2 3 Quantity (millions of smart watches per year) >>> Draw only the objects specified in the question. Q 7Economists use the model of supply and demand to analyze on the market price. Operfect, monopoly monopoly, competitive O competitive, competitive monopoly, monopoly competitive, monopoly markets. In a market, there are many buyers and sellers, each of whom has little or no influence
- 23 C Use the graph below to answer the following questions 60 40 30 20 P C 1 $ T 1 1 1 1 I 1 1 T MR 2000 3000 What is the value of consumer surplus if this market is perfectly competitive? [ Select] What is the value of producer surplus if this market is perfectly competitive? [ Select] What is the value of consumer surplus if this market is under the control of a monopolist? [Select] S = MC What is the value of producer surplus if this market is under the control of a monopolist? [Select] % D What is the value of deadweight loss (DWL) if this market is under the control of a monopolist? [Select] 45 6000 Note: The formula to calculate the area of a triangle is [1/2 x (Base x Height)] G Search or type URL Q A 6 MacBook Pro & 7 ✰1 * 8 x A ( 9 ** +15624724714 FaceTime +141569623- FaceTime ) 0Suppose Miriam sets a single price but also charges Shane an entry fee before he can buy any donuts Provide answers and include a couple of sentences providing an explanation for your answer. a. If Miriam trying to maximize her producer surplus, where will she set the price and entry fee, and how many donuts will she sell? b. Does your answer to (a.) violate our result that profit is maximized by setting the quantity where marginal revenue equals marginal cost? Number of Donuts Shane's Marginal Value Miriam's Marginal Cost 1 $1.70 $0.90 2 $1.60 $0.95 3 $1.50 $1.00 4 $1.40 $1.05 5 $1.30 $1.10 6 $1.20 $1.15 7 $1.10 $1.20 8 $1.00 $1.25 9 $0.90 $1.30 10 $0.80 $1.35 11 $0.70 $1.40 12 $0.60 $1.45 13 $0.50 $1.50What is marginal benefit? What is marginal cost? What is consumer surplus? What is producer surplus?