Practice question 3: Answer the question on the basis of the provided demand and cost data for a pure monopolist. 1. The profit-maximizing level of output will be 2. The profit-maximizing monopolist will realize a $ (profit/loss/break-even) equals to Demand Data Price $5.50 5.00 4.50 3.85 3.35 2.90 2.50 Quantity Demanded 3 4 5 6 7 8 9 Cost Data Output Total Cost 3 4 5 6 7 8 9 $5.00 6.00 6.50 7.50 9.00 11.00 14.00
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- Ref to the right-hand side graph to answer Q49 – Q50b. Price АТС 49. Suppose the monopolist represented in the diagram above produces positive output. (In other words, "no shutdown" and keep operating.) What is the price charged at the profit-maximizing/loss- minimizing output level? and cost per unit MC $75 68 63 A) $38 B) $54 C) $63 D) $68 E) $75 54 50. The monopolist profit (or loss) = $_ Note: Put “–" (minus) sign if the monopolist is losing money. 38 'Demand 50b. On the right-hand side graph, neatly shade a rectangle or triangle area that represents this monopolist's profit (or loss). 630 800 Quantity 880 850 MRUnderstand economies of scale. At what point are there economies of scale and at what point are there diseconomies of scale? What does this have to do with the monopolist? Long-Run ATC Unit Costs a Q₁ Q₂ Output Q₂Price $11.50 $9.00 $8.00 $5.50 52. Refer to the graph above. If this monopolist were regulated by government agency and forced to set the fair return price, it would likely produce earn charge the price of. and _economic profit a) 300 units; $11.50; negative b) 10002`zunits; $11.50; positive economic profit c) 1,600 units; $8.00; normal d) 1,400 units; $9.00; negative Refer to the graph below: MR 300 1000 1400 1600 Quantity MC AC
- 2) The Epson Company is a monopolist in the market and faces the demand curve shown in the figure below. The firm's marginal cost curve is MC= 100 +2Q. a. What is the firm's profit-maximizing output and price? Price ($/unit) 400 0 D 200 Quantity of printers (thousand) b. If the firm's demand changes to P = 300 - Q while its marginal cost curve remains the same, what is the firm's profit-maximizing level of output and price? How does this compare to your answer for (a)? c. Draw a diagram showing these two outcomes. Holding marginal cost equal, how does the shape of the demand curve affect the firm's ability to charge a high price? (bonus question 5 points)The demand schedule of Karachi electric (KE) (known as monopolist) is given as below. You needto find the missing values using TR-TC & MR-MC approaches to analyze its cost of productionand profit maximizing point.Output Price Total Cost Total Revenue MC MR0 Rs.24 Rs.101 21 142 18 203 15 284 12 385 9 50a. Find the missing values of Total Revenue columnb. Find the output level that maximizes the firm's profit, using TR-TC approachc. What price should the firm set to achieve maximum profit?d. Complete the final two columns to verify that the same conclusions are reached using theMR = MC rule.e. Compare both the results and comment on the business and its positionGive typing answer with explanation and conclusion The inefficiency (dead-weight loss) of a monopoly (as compared to perfect competition) indicates the amount by which Group of answer choices price exceeds marginal revenue at a particular output level. consumer welfare is increased by the monopolist. price exceeds marginal cost at a particular output level. marginal benefits exceed marginal cost for those units not produced by the monopolist but that would otherwise be produced in a competitive market. marginal costs exceed marginal benefits for those units not produced by the monopolist but that would otherwise be produced in a competitive market.
- a) The demand curve faced by monopolist and his total cost functions are given below; Demand function; Q = 3000 – 60P Total Cost function; TC = 100 +5Q+1/480Q2 a) Find profit Maximizing price and output level of this Monopoly firmb) Measure the firm profit margin at profit maximize output level. c) “Compare to perfect competitive producer, the monopolist is misused scare resources” Explain using suitable graphsCurrently, a monopolist's profit-maximizing output is 400 units per week and it sells its output at a price of S60 per unit. The firm's total costs are $10,000 per week. The firm is maximizing its profit, and it earns $40 in extra revenue from the sale of the last unit produced each week. a. What are the firm's weekly economic profits? b. What is the firm's marginal cost? c. What is the firm's average total cost?The government of a small developing country has granted exclusive rights to Linden Enterprises for the production of plastic syringes. The table below shows the cost and demand data for this government-protected monopolist. Quantity per Day (cases) 1 2 3 $49.0 $42.0 $47.0 $34.5 5 6 7 8 10 Price per Case $16 15 14 13 12 11 10 7 What is the amount of profit that the firm earns? Total Cost $7.00 9.50 11.00 12.00 14.50 17.00 21.00 25.00 30.00 35.50
- Text Problem 24-6 Question Help Currently, a monopolist's profit-maximizing output is 400 units per week. It sells its output at a price of $55 per unit and collects $30 per unit in revenues from the sale of the last unit produced each week. The firm's total costs each week are $8,000. Given this information, the firm's maximized weekly economic profits are $. (Enter your response as a whole number.)Please no written by hand solutions 1. Assume the cost function for a monopolist is given by TC(q) = 30Q; the inverse demand function for the firms' output is p = 120 - Q, where Q is the total output. a. Find the profit-maximizing combination of price and quantity b. Estimate consumer surplus, producer surplus and the deadweight loss associated with this monopolist C. If this industry became perfectly competitive, explain and estimate the consumer surplus, producer surplus and deadweight loss of the industry d. Graph your answers for a, b, and c 2. Now assume that the monopolist above splits into two. Each of two firms has the cost function TC(q) = 30q. a. What are the firms' outputs in a Nash equilibrium of Cournot's model? b. Estimate the economic profits for each firm c. If firm 1 is the leader and firm 2 the follower, find the equilibrium outputs for the Stackelberg solution.Monopoly - End of Chapter Problem Download Records decides to release an album by the group Mary and the Little Lamb. It produces the album with no fixed cost, but the total cost of creating a digital album and paying Mary her royalty is $6 per album. Download Records can act as a single-price monopolist. Its marketing division finds that the demand schedule for the album is as shown in the accompanying table. a. Calculate the total revenue and marginal revenue per album for P = $16, $14, and $12. TRP $16: $ TRP $14: $ Price of album $22 20 18 16 14 12 10 8 Quantity of albums demanded 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000