Suppose the table below describes the relationship between price and quantity demanded for a monopolist. Quantity 1 2 3 4 5 6 7 8 O Price $10 $9 $8 $7 If the marginal cost of producing each unit of output is $5, then this monopolist maximizes its profit by charging_________ per unit. $8 $5 $3 $6 $6 $5 $4 $3
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- Price οι οιοιο $20 $18 $16 $14 $12 $10 $8 O $8. $0 MC 0 300 600 700 800 Quantity per day Refer to the graph shown. Assuming that this monopolist maximizes profit, the marginal cost of its last unit of output will be: O $16. O $10. $12. AC DO OO The above graph shows the market demand function for a product. Assume that the market is served by a perfectly-price-discriminating monopolist with a constant marginal cost of production equal to $4 (MC = $4) and no fixed cost (FC = 0). The deadweight loss equals: DWL - $72 DWL - $0 DWL- -$48 DWL - $84 DWL-$36 $30 $28 $26 $24 $22 $20 Question 23 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15Asap
- A monopolist and a perfectly competitive firm both * O face a downward-sloping demand curve O have their marginal revenue curve below their demand curve. can earn profit in the long run O have a horizontal marginal revenue curve maximize profit by producing the quantity at which marginal revenue equals marginal costConsider a monopolist who charges a single price to all of its customers. If this monopolist starts price discriminating, its output will and its profit will Orise; fall O fall; fall Ofall; rise Orise; riseK The following figure shows the revenue curves of a monopolist: Figure 11.6 5000 Price ($) 4000- 2500- 0 D. Average revenue MR: Marginal revenue O $500,000 200 O $300,000 O $350,000 O $250,000 In Figure 11.6, assume that marginal costs are constant at $2,500 and fixed costs are 0. What would be the amount of consumer surplus if the market was perfectly competitive? 400 O $1,000,000 MR Quantity 102°F Sunny
- es The following table contains demand and cost data for a monopolist. Complete the table by filling in the columns for total revenue, marginal revenue, and marginal cost. Answer these three questions: (a) What output will the monopolist produce? (b) What price will the monopolist charge? (c) What total profit will the monopolist receive at the profit-maximizing level of output? Quantity Price Total revenue Marginal revenue Total cost Marginal cost O $34 $ 1 32 30 28 26 24 22 20 18 16 14 234 5678 9 10 $ $20 36 46 50 54 56 64 80 100 128 160 $Price of laptops 1250 25 1000 50 750 75 500 100 250 125 Refer to the table shown, which shows the demand schedule for a firm that has a monopoly on the sale of laptops. If the marginal cost of producing laptops is $250 no matter how many laptops are produced and the monopolist seeks to maximize profit, it should set the price of laptops at: O 500 O Quantity Demanded per Year 1000 750 250If the monopolist shown in the following figure could practice first-degree price discrimination, the consumer surplus would be: Price (dollars) 50 40 30 20 10 0 O $450.00 $900.00 $0.00 $225.00 O $1,200.00 30 50 60 MR 100 MC Quantity
- The accompanying diagram shows demand, marginal revenue, and marginal cost of a monopolist. $120 MC 110 100 90 80 70 60 50 40 30 20 10 MR 0+ Quantity o i 2 3 4 s6i s 9 10 11 12 13 14 is a) Determine the profit-maximizing output and price. b) What price and output would prevail if this firm's product was sold by price-taking firms in a perfectly competitive market? c) Calculate the deadweight loss of this monopoly. d) Suppose MC increases. How would this affect monopoly price and quantity? e) Suppose market demand became less price elastic (hint: became flatter). How does this affect monopoly price and quantity?A monopolist faces the following demand curve: Price $10 $9 $8 $7 $6 $5 $4 $3 Quantity 5 Select one: O a. 31 units O b. 7 units O c. 16 units O d. 23 units 10 16 23 31 45 52 60 The monopolist has total fixed costs of $40 and a constant marginal cost of $5. What is the profit-maximizing level of output?If a monopolist attempts to raise its price by a small amount, the quantity that its customers will buy will O increase O remain the same O decrease O None of these choices.
