The price elasticity of demand for a monopolistic firm's product is given by 0.3√P 8-0.6 p ng/p (a) If the firm raises their price from po good will... [Select] $64.00 to P₁ = $65.00, then the demand for their (b) The firm's marginal revenue is maximized when they set their price to .... [Select]
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![The price elasticity of demand for a monopolistic firm's product is given by
0.3 p
8-0.6 p
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(a) If the firm raises their price from po = $64.00 to p₁= $65.00, then the demand for their
good will... [Select]
(b) The firm's marginal revenue is maximized when they set their price to...
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- Question 5: Jimmy has a room that overlooks, from some distance, a major league baseball stadium. He decides to rent a telescope for $50 a week and charge his friends and classmates to use it to peep at the game for 30 seconds. He can act as a monopolist for renting out "peeps". For each person who takes a 30 second peep, it costs Jimmy $.20 to clean the eyepiece. Jimmy believes he has the following demand for his service: Price of a Peep $1.20 Quantity of peeps demanded 1.00 90 100 150 200 250 300 70 60 50 350 40 30 400 450 20 10 500 550 a) For each price, calculate the total revenue from selling peeps and themarginal revenue per peep. Price Quantity TR MR $1.20 100 90 100 150 200 70 250 60 300 350 50 40 30 400 450 20 500 10 550 b) At what quantity will Jimmy's profit be maximized? What price will he charge? What will his total profit be? c) Jimmy's landlady complains about all the visitors coming into the building and tells Jimmy to stop selling peeps. Jimmy discovers, though, if he…Asked Dec 16, 2019 a monopolist finds the demand curve to be linear. with data points (q,p) on that line of being (100,125) and (20,165). How maqny items can he sell if the price is p=90? What price should she charge to maximize revenue?Inverse demand for aglets (the plastic wrap on the end of the shoelaces) is given by the expression: P=1-Q/20,000. Further suppose the the marginal cost of producing aglets is constant at $0.01. What are the equilibrium price and quantity in a competitive market? What are the equilibrium price and quantity as well as profit in monopolistic market? What is the deadweight loss?
- for a monopolistic firm, its demands is p=200- 0.25Q while MR =200-0.5Q if its MC=20 how much it should produce to maximize its profit? for a monopolistic firm, its demands is p=200- 0.25Q while MR =200-0.5Q if its MC=20 how much the firm should charge? for a monopolistic firm, its demands is p=200- 0.25Q while MR =200-0.5Q if its MC=20 calculate its maximizing profitSuppose that a monopolistic seller of designer handbags faces the following inverse demand curve: P= 50 – 0.4q. The seller can produce handbags for a constant marginal and average total cost of $10. Calculate the profit-maximizing price for this seller. Now, suppose the government levies a $4 tax per unit on sellers of handbags. Calculate how this tax will affect the price the monopolist charges its customers and who will bear the burden of this tax.$30 MC ATC $20 $10 MR Demand 10 20 30 40 Quantity (in Thousands per Month) What is the maximum profit per month that the monopolist will be able to earn according to the graph? zero approximately $20,000 approximately $50,000 Oapproximately $100,000 Price
- Suppose a profit-maximizing monopolist is producing 1100 units of output and is charging a price of $60.00 per unit. If the elasticity of demand for the product is - 3.00, find the marginal cost of the last unit produced. The marginal cost of the last unit produce is $ (Enter your response rounded to two decimal places.) What is the firm's Lerner Index? The firm's Lerner Index is - (Enter your response rounded to two decimal places.) Suppose that the average cost of the last unit produced is $12.00 and the firm's fixed cost is $1000. Find the firm's profit. The firm's profit is $ (Enter your response rounded to two decimal places.)Question 1. a). Given the denand function Q = 700 - 2P+0.02Y. where P = 23 aznd Y= 5000. Find the price and incone elasticity of demand (Gmarka). b). Find the profit-maximising level of (1) output, (i) price and (in) total profit for the monopolistie producer with the following demand funetion. P=74-15Q Pz = 72-2Q: The joint cost function in given by C= Qf +20Q: + Qi + 120 (6marks) e). For the following profit function. find the critical values, ue both the first and second order conditions to check whether or not the citical values give rise to maximum er minimum points and find the maximum profit (7marka) o-s0 + 3600 - 100 d) A discriminating monopoly producing a single product decides to, mell his product in two marketa. The profit funetion for the monopoly is given by: = 45Q. - Q + 6Q, - no - 10 Find the levels of Q, and Qa that will natisfy the first order condition for profit maximisation. Is the second order condition for profit maximisation satistied?You are a consultant who is advising a monopoly on the optimal pricing strategy. Your analysis has yielded the following information. • The marginal cost (MC) is $3. • The demand equation is P = 90 - 3Q . The total cost (TC) is given by 35+ 3Q The marginal revenue (MR) is given by 90 - 6Q Based on this information, answer the following questions. Show FULL calculations! (a) Following the concepts of profit maximization, what is the profit maximizing quantity for this monopoly? (b) Following the concepts of profit maximization, what is the profit maximizing price for this monopoly? (c) Following the concepts of profit maximization, what is the monopoly's profit at the profit maximization point?
- You are the manager of a pizzeria that produces at a marginal cost of $6 per pizza. The pizzeria is a local monopoly near campus (there are no other restaurants or food stores within 500 miles). During the day, only students eat at your restaurant. In the evening, while students are studying, faculty members eat there. If students have an elasticity of demand for pizzas of −4 and the faculty has an elasticity of demand of −2, what should your pricing policy be to maximize profits?Suppose you are a monopolist in the market for a specific Q video game. Your demand curve is given by P = 80- - and 2 your marginal cost curve is MC = Q. Your fixed cost is $400. i) Derive the marginal revenue curve. ii) Calculate the equilibrium price and quantity. iii) What is the profit?A large corporation with monopolistic control in the marketplace has its average daily costs, in dollars, given by C- 1500 + 100x + x². X The daily demand for x units of its product is given by p = 60,000 - 50x dollars. Find the quantity that gives maximum profit. X = units Find the maximum profit. $ What selling price should the corporation set for its product?
