Joe’s Garage (JG) under monopoly faces inverse demand curve P = 200 – 15Q and marginal cost curve MC = 20Q + 50, where quantity is measured in rotations per day and price in dollars. Calculate the deadweight loss from market power at the firm’s profit-maximizing level of output.
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- You are the manager of a monopoly, and your demand and cost functions are given by P = 300 − 3Q and C(Q) = 1,500 + 2Q2, respectively. a. What price–quantity combination maximizes your firm’s profits? b. Calculate the maximum profits. c. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price–quantity combination? d. What price–quantity combination maximizes revenue? e. Calculate the maximum revenues. f. Is demand elastic, inelastic, or unit elastic at the revenue-maximizing price–quantity combination?You are the manager of a monopoly. A typical consumer’s inverse demand function for your firm’s product is P = 250 − 40Q, and your cost function is C(Q) = 10Q. a. Determine the optimal two-part pricing strategy. b. How much additional profit do you earn using a two-part pricing strategy compared with charging this consumer a per-unit price?You are the manager of a monopoly, and your demand and cost functions are given by P = 200 − 2Q and C(Q) = 1,400 + 2Q2, respectively. What price–quantity combination maximizes your firm’s profits? Calculate the maximum profits. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price–quantity combination?
- You are the manager of a monopoly, and your analysts have estimated your demand and cost functions as P = 500 − 2Q and C(Q) = 2,500 + 2Q2, respectively. a. What price–quantity combination maximizes your firm’s profits? Instructions: Round your response to the nearest penny (two decimal places). Price: $ Quantity: units b. Calculate the maximum profits. Instructions: Round your response to the nearest penny (two decimal places). $ c. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price–quantity combination? multiple choice 1 Elastic Inelastic Unit elasticYou are the manager of a monopoly. A typical consumer's inverse demand function for your firm's product is P= 250-400, and your cost function is aQ) = 10Q. a. Determine the optimal two-part pricing strategy. Per-unit fee: $ Fixed fee: $ b. How much additional profit do you earn using a two-part pricing strategy compared with charging this consumer a per-unit price? $You are the manager of a monopoly, and your analysts have estimated your demand and cost functions as P = 600 − 3Q and C(Q) = 2,000 + 2Q2, respectively. a. What price–quantity combination maximizes your firm’s profits? Instructions: Round your response to the nearest penny (two decimal places). Price: $ Quantity: units b. Calculate the maximum profits. Instructions: Round your response to the nearest penny (two decimal places). $ c. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price–quantity combination? multiple choice 1 Unit elastic Inelastic Elastic d. What price–quantity combination maximizes revenue? Instructions: Round your response to the nearest penny (two decimal places). Price: $ Quantity: units e. Calculate the maximum revenues. Instructions: Round your response to the nearest penny (two decimal places). $ f. Is demand elastic, inelastic, or unit elastic at the revenue-maximizing price–quantity…
- You are the manager of a monopoly, and your analysts have estimated your demand and cost functions as P = 200 − 2Q and C(Q) = 1,000 + 3Q2, respectively. a. What price–quantity combination maximizes your firm’s profits? Instructions: Round your response to the nearest penny (two decimal places). Price: $ Quantity: units b. Calculate the maximum profits. Instructions: Round your response to the nearest penny (two decimal places). $ c. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price–quantity combination? multiple choice 1 Elastic Unit elastic Inelastic d. What price–quantity combination maximizes revenue? Instructions: Round your response to the nearest penny (two decimal places). Price: $ Quantity: units e. Calculate the maximum revenues. Instructions: Round your response to the nearest penny (two decimal places). $ f. Is demand elastic, inelastic, or unit elastic at the revenue-maximizing price–quantity…Consider a market with a common demand function given by Q = 100 - 2P, where Q represents quantity and P represents price. The total cost function for firms in this market is TC=1000+ 50². a) For a monopoly, calculate the profit-maximizing price, quantity, consumer surplus, producer surplus, and deadweight loss. b) Compare the monopoly equilibrium to the equilibrium in perfect competition. Calculate the price, quantity, consumer surplus, producer surplus, and deadweight loss under perfect competition. c) Use a single graph to illustrate both the monopoly and perfect competition equilibriums. 4You are the manager of a monopoly, and your analysts have estimated your demand and cost functions as P = 300-2Q and C(Q) = 1,500 + 2Q2, respectively. a. What price-quantity combination maximizes your firm's profits? Instructions: Round your response to the nearest penny (two decimal places). Price: $ Quantity: units b. Calculate the maximum profits. Instructions: Round your response to the nearest penny (two decimal places). $ c. Is demand elastic, inelastic, or unit elastic at the profit - maximizing price-quantity combination? multiple choice 1 Unit elastic Elastic Inelastic d. What price- quantity combination maximizes revenue? Instructions: Round your response to the nearest penny (two decimal places). Price: $ Quantity: units e. Calculate the maximum revenues. Instructions: Round your response to the nearest penny (two decimal places). $ f. Is demand elastic, inelastic, or unit elastic at the revenue - maximizing price-quantity combination? multiple choice 2 Unit elastic Elastic…
- In terms of which of the following is the monopoly greater than the competitive market? a) Prevalence b) The number of firms c)Market quantity d) Market power of a firm e) c and dYou are the manager of a monopoly, and your demand and cost functions are given by P = 300 – 3Q and C(Q) = 1,500 + 2Q2, respectively. What price-quantity combination maximizes your firm’s profits? Calculate the maximum profits. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price-quantity combination? What price-quantity combination maximizes revenue? Calculate the maximum revenues? Is demand elastic, inelastic, or unit elastic at the revenue-maximizing price-quantity combination?a) Using the following graph state the price and quantity the firm will be at if the monopoly market is in long run equilibrium. Explain why the firm will be at that price and quantity. b) State the conditions that establish the market structure monopoly, and the conditions needed for price discrimination and why firms price discriminate. (image attached)
