A monopolist has a cost function c(q) = 5g +800 and faces aggregate demand q=3000-120p. Suppose first that monopolist sells q=400 units. The monopolist's revenue would be The monopolist profit would be The absolute value of the price elasticity of demand would be
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- A movie theatre (a local monopolist) caters to students and other adults. The demand function for students is Qd = 2,700 – 150 P and the demand function for other adults is Qd = 2,500 – 50 P . Marginal cost is 2 per ticket. Assume that the monopolist can discriminate. What price willthe monopolist set for students? Pg = $ What price will the monopolist set for other adults? PA = 8 Section Attempt 1 of 1 VerifyThe demand for good X is given by x = 586 p-6. The good is sold by a monopolist with cost function C(x ) = 4 x and whose is aim is to maximize profit. The firm charges all customers the same price. If the government imposes a per unit tax equal to 4 dollars on the firm, what price will the monopolist charge consumers?Assume inverse demand function for game console in an imaginary country is P=1200-4Q and the total cost function is TC=400+4Q2. Government put $120 of specific tax on production. If the market is competitive what is the incidence of tax on consumer? If the market is monopolist what is the incidence of tax on consumer?
- A monopolist has discovered that the inverse demand function of a person with income Y for the monopolist’s product is P = 0.002Y-Q where P is the price, Y the income, and Q is the output. The monopolist can observe the incomes of its consumers and hence vary its price accordingly. The monopolist has a total cost function C(Q) = 100Q. A. Calculate the profit maximising price as a function of the consumer’s income Y carefully explaining all the steps in the derivation of the formula. B. A monopolist has a constant marginal cost of £2 per unit and no fixed costs. He faces two separate markets in the United States and in the UK. The goods sold in one market are never resold in the other. He sets one price P1 for the US market and another price P2 for the UK market (both measured in £). The demand in the United States is given by Q1=7,000-700P1 and the demand in the UK is given by Q2=1,200-200P1. Calculate the profit maximising output produced and price charged in each country by the…Consider a monopolist that sells cable subscriptions. When the price is $10 a week, it can sell 175 subscriptions. When the price is $15 a week, it can sell 100 subscriptions. The monopolist has fixed costs of $200. The MC for the provision of the cable is $6 a week. If this monopolist must choose between selling 100 or 175 subscriptions, it will choose to sell units at a price of and earn economic profits equal to 175; $10; $700 100; $15; $700 175; $15; $900 100; $15; $900 none of the aboveOn the market of good Y there are 100 identical consumers. Each consumer has a demand function q=360-2p Good Y is produced by a monopolist, which is operating with a constant marginal cost of 50 and a fixed cost of 2000. Suppose the monopolist implements a two-part tariff pricing strategy. Calculate the maximum profit obtainable. Your Answer: Answer
- Only answer BOLD and ITALIC part of the question. A monopolist has discovered that the inverse demand function of a person with income Y for the monopolist’s product is P = 0.002Y-Q where P is the price, Y the income, and Q is the output. The monopolist can observe the incomes of its consumers and hence vary its price accordingly. The monopolist has a total cost function C(Q) = 100Q. A monopolist has a constant marginal cost of £2 per unit and no fixed costs. He faces two separate markets in the United States and in the UK. The goods sold in one market are never resold in the other. He sets one price P1 for the US market and another price P2 for the UK market (both measured in £). The demand in the United States is given by Q1=7,000-700P1 and the demand in the UK is given by Q2=1,200-200P2. - Calculate the profit maximising output produced and price charged in each country by the price-discriminating monopolist and comment in which country the price charged is higher and by how much.…Suppose all consumers are identical and market demand given by p = 100 – q. The monopoly's cost function is C(9) = g. (a) Suppose the monopolist cannot discriminate prices and must set a uniform price. Compute price and quantity set by the monopolist. Compute the profit of the monopoly. (b) Suppose now that the monopoly can set a two-part tariff. Find the optimal two-part tariff. Compute the profit of the monopolist.Suppose a monopolist faces two groups of consumers. Group 1 has a demand given by P1=50−2Q1�1=50−2�1 and MR1=50−4Q1��1=50−4�1. Group 2 has a demand given by P2=40−Q2�2=40−�2 and MR2=40−2Q2��2=40−2�2. The monopolist faces a constant marginal cost equal to MC=10��=10.If the monopolist is allowed to engage in 3rd degree price discrimination, how many units of output will the monopolist sell? Question 12Answer a. 25 b. 10 c. 15 d. 20
- If the monopolist is incurring a short run economic loss, what are some options the monopolist has? Will the monopolist produce an output level that is allocatively efficient? Will the monopolist produce an output level that is technically efficient?A monopolist has a constant marginal cost of 12. Consumers' inverse demand is P = 32 - 4Q. The monopolist runs a persuasive advertising campaign that costs 26 and increases consumer demand to P = 37 - 4Q. (a) What is the gain (or loss) in the firms profits caused by the advertising campaign? b) When consumers' pre-advertising preferences are used to calculate welfare, what is the welfare gain (or loss) caused by the advertising campaign? Answer 2 Question 1 (c) When consumers' post-advertising preferences are used to calculate welfare, what is the welfare gain (or loss) caused by the advertising campaign? Answer 3 Question 1a profit-maximizing monopolist faces the demand curve q=200-5p. it produces at a constant marginal cost of $10 per unit. a quantity tax of $10 per unit is imposed on the monopolist's product which the monopolist should pay. the price of the monopolist's product after the tax. hint: since the conopolist will pay the tax, it increases its cost. you must write the correct cost function to solve the problem.