21) In Figure 5.5, what profit would the monopolist earn? P P4 P3 P2 P₁ MR Q* MC AVC D Figure 5.5 A) zero profit, because it would shut down. B) a positive profit. ECON 2003: 1 ATC
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- (2). sketch the pareto-inefficiency and dead weight loss created by monopolist.d) If a price ceiling of $17.50 is imposed by the government on the monopolist, estimate (based on the graph) the quantity that the monopolist will produce. In this case, does the price ceiling in a monopoly improve economic efficiency or not? e) Supposed that instead of a regular monopoly, the graph above pertains to a natural monopoly, what change must be made to the graph to depict a natural monopoly?Ch09-15 S16 (47) 2:29 Competition Vs. Monopoly Market Structure: Dead Weight Loss and the Misallocation of Resources. BUS Ch9 15. eompetition Vs. Monopoly Market Structure, Dead Weight Loss and the Misallocation of Resources. 48. If TC-1000 when Q=10, then if tactors of production are doubled then TC = 2000 and Q=20. 47.Assume: a) Monopoly market structure. b) Firm's selection of "scale of plant results in "constant returns to scale" cost structure. TC AC MC 10 1000 c) This implies if you double inputs output doubles. d) Thus, double inputs doubles the cost of production. e) Thus, MC = AC. 100 20 2000 100 100 40 4000 100 100 2:12/ 2:28 YouTube 67. In the video, when we assume constant returns to scale, the result is? Select one: Oa. MC>AC Ob. MCa)What are the main characteristics of a monopolist firm? b) Suppose a monopolistically competitive firm operates in a long run which produces 50units of output at 150 taka per-unit cost (average total cost). Also MC of producing 50 unitoutput is 80 taka. By using this information, show the long run situation of a monopolisticallycompetitive firm in an appropriate diagram. c) Calculate excess capacity if socially efficient output is 120 units. Show it in graph too.[Note: b) and c) are related questions and draw separate graphs for each question]Assume that the market for coal is a monopoly market. We have the following: ?(?) = ?? − ?? ????? ? > ? ??(?) = ?? ? − ?? ? + ?? + ??? a. Find the monopolist price and quantity. b. What is the value of Profit (or loss) at monopolist equilibrium price and quantity? c. What is the value of dead weight loss (DWL) at monopolist price and quantity?5) Describe the basic characteristics of the monopoly model and explain how these characteristics affect the ability of a monopolist to earn positive economic profits, both in the short run and over time.Problems and Applications Q9 Only one firm produces and sells soccer balls in the country of Wiknam, and as the story begins, international trade in soccer balls is prohibited. The following equations describe the monopolist's demand, marginal revenue, total cost, and marginal cost: Demand: P=15−Q Marginal Revenue: MR=15−2Q Total Cost: TC=3+Q+0.5 Marginal Cost: MC=3+Q where QQ is the quantity and PP is the price measured in Wiknamian dollars. The monopolist produces __________ soccer balls and sells them at a price of $ __________ each. The monopolist's profit is $ __________ in this case. One day, the King of Wiknam decrees that henceforth there will be free trade—either imports or exports—of soccer balls at the world price of $10. The firm is now a price taker in a competitive market. The domestic production of soccer balls will (rise or fall) to __________ soccer balls, and domestic consumption will (rise or fall) to __________soccer balls.…Problem 1. Suppose that a monopolist with MC = 0 faces two consumers with demand curves given by D₁(P₁) = 42 - P1, D2 (P2) = 21 – 1/2p2 a) Suppose the monopolist can tell the consumers apart. Find the optimal (profit-maximizing) pair of price-quantity packages. b) Please, find the optimal (profit-maximizing) pair of price-quantity pack- ages for the case when the monopolist can not tell the consumers apart.Several Governments in CARICOM nations are reluctant to allow the provision of telecommunication services by multiple providers. They prefer that a Government Agency provides these services as they believe that consumers will be protected. However the revenue they gain should not be ignored as a possible motive. A recent study found that 8 countries out of the 15 in the CARICOM nations’ have telecommunication services being provided by the a state company. For example, in St. Lucia, De Phone is the sole provider of telecoms. They offer discounts to senior citizens and students and also provide a lower price for individual who purchase multiple plans. Of note, the remaining CARICOM nations, including Trinidad and Tobago, have opened their markets to competition. These countries have seen increased advertising among competitors to market their product. State what market structure exists in St. Lucia and illustrate how equilibrium price and quantity determined in this industry with graphsSeveral Governments in CARICOM nations are reluctant to allow the provision of telecommunication services by multiple providers. They prefer that a Government Agency provides these services as they believe that consumers will be protected. However the revenue they gain should not be ignored as a possible motive. A recent study found that 8 countries out of the 15 in the CARICOM nations’ have telecommunication services being provided by the a state company. For example, in St. Lucia, De Phone is the sole provider of telecoms. They offer discounts to senior citizens and students and also provide a lower price for individual who purchase multiple plans. Of note, the remaining CARICOM nations, including Trinidad and Tobago, have opened their markets to competition. These countries have seen increased advertising among competitors to market their product. State what market structure exists in Trinidad and Tobago. Explain if excess profit will exist in the long run.Several Governments in CARICOM nations are reluctant to allow the provision of telecommunication services by multiple providers. They prefer that a Government Agency provides these services as they believe that consumers will be protected. However the revenue they gain should not be ignored as a possible motive. A recent study found that 8 countries out of the 15 in the CARICOM nations’ have telecommunication services being provided by the a state company. For example, in St. Lucia, De Phone is the sole provider of telecoms. They offer discounts to senior citizens and students and also provide a lower price for individual who purchase multiple plans. Of note, the remaining CARICOM nations, including Trinidad and Tobago, have opened their markets to competition. These countries have seen increased advertising among competitors to market their product. i. State what market structure exists in St. Lucia and illustrate how equilibrium price and quantity determined in this industry.Draw…Andrew runs a nightclub called “Fun1040". Given the popularity and cache of the club, he has a monopoly position in the market. Males nightclub goers have an individual demand curve of P =16 - q, whereas female customers each have an individual demand curve of P = 22 - q. Andrew has a marginal cost per drink of MC = $2 per unit and no fixed cost. By law, Andrew is unable to charge an entrance fee. He can, however, charge different prices for men and women for their drinks (by serving men blue glasses and women customers their drinks in green glasses). If Andrew tries to maximise profit, which statement is true? O Andrew charges both men and women $12 per drink; this is fırst-degree price discrimination. O Andrew charges men $9 per drink and women $12 per drink; this is an example of third-degree price discrimination. O Andrew charges men $12 per drink and women $9 per drink; this is an example of third-degree price discrimination. O Andrew charges men $10 per drink and women $7 per…SEE MORE QUESTIONS
