1. A monopoly and is currently charging a price of $10, what would you advise them to do? 2. A monopoly and is currently charging a price of $8, what would you advise them to do? 3. If the monopoly is currently charging a price of $6, what would you advise them to do?
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- Sub : EconomicsPls answer very fast.I ll upvote correct answer. Thank You Frustrated with DTCs monopoly, several diamond mining interests and large retailers collectively set up a joint venture called Adamantia to act as a com- petitor to DTC in the wholesale market for diamonds. The wholesale price is now given by P =120−QD −QA, where QA is the quantity that Adamantia chooses to sell. Assume that Adaman- tia also has a cost of 30 (hundred dollars) per high-quality diamond. Answer the following questions and show your work. (A) Write DTC’s profit, ΠD, in terms of QD and QA in this duopoly situation. Find the DTC’s best response function. (B) Write Adamantia’s profit, ΠA, in terms of QD and QA. Find the Adamantia’s best response function. (C) What quantity does each wholesaler supply to the market in Nash equilibrium? (D) What wholesale price do these quantities imply? What will the Nash equilib- rium profit of each supplier be in this duopoly situation?Doan's Headphones company is innovative enough to have a monopoly in their market where they sell 80 million headphones each year. The marginal cost of making headphones is very low and Doan's analytic's department realize that if it dropped prices by 30% sales would rise enough that the company's profits would also increase. This result suggests that at Doan's current output: Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a MC=MR b MC is lower than MR MC is higher than MR(Figure: Short-Run Monopoly in the Market for Electricity) Use Figure: Short-Run Monopoly in the Market for Electricity. The marginal cost of producing the profit-maximizing quantity is: Price and cost NOR OP. SON. O O O Q. 0 P Q runscript RSTU MC MR ATC AVC Demand Quantity (KWH per pound)
- Problem 11-04 (algo) ou are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Analysts at your irm have determined that group 1's elasticity of demand is -5, while group 2's is -2. Your marginal cost of producing the product is 630 a. Determine your optimal markups and prices under third-degree price discrimination. Instructions: Enter your responses rounded to two decimal places. Markup for group 1: Price for group 1: $ Markup for group 2: Price for group 2 $ b. Which of the following are necessary conditions for third-degree price discrimination to enhance profits. Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click twice to empty the box. ?At least one group has elasticity of demand greater than 1 in absolute value. ?At least one group has elasticity of demand less than one in absolute value.…What is a bilateral monopoly?(SHOW WORKING) The following table provides the price and cost schedule of a monopoly firm. The profit maximizing price and output are: Price (S) Quantty Produced Total Co 160 %3D 140 150 I84 140 230 ZN0 120 335 10 395 $110 and 6 $150 and 2 O $160 and 1 O $130 and 4 -- nle
- Figure: A Profit-Maximizing Monopoly Firm Price, marginal revenue, marginal cost, average total cost A) $5. OB) $13. C) $14. $35 D) $20. 29 26 రారాళి 8 5 0 (Figure: A Profit-Maximizing Monopoly Firm) Look at the figure A Profit-Maximizing Monopoly Firm. This firm's profit per unit is: MC ATC MR 160 220 250 300 Quantity of output (per week)(Table: Barrels of Oil 2) Refer to the table. What is the marginal revenue of producing the fifth barrel of oil? Barrel of Oil Produced Total Revenue Total Cost Price 1 $50 $4 $50 10 234567896 100 10 50 150 21 50 200 38 50 250 61 50 300 90 50 350 126 50 400 176 50 450 266 50 500 390 50 61 50 200 250(Figure: Short-Run Monopoly) Look at the figure Short-Run Monopoly. If the firm is trying to maximize its profit, the per-unit profit is: The difference between O and where ATC at output R. The difference between N and where ATC at output R. The difference between N and where AVC at output R. N-P
- Question 12 1 pts (Figure: Marginal Revenue) What is the marginal revenue of the sixth unit in the following example? Price $8 $7 $6 $5 .... $4 $3 $2 $1 23 1 2 100 3 10 78 Quantity(dollars) 10 8 6 0 Exhibit 9-7 Monopolist I ¡MR MC Quantity According to the information provided in Exhibit 9-7, if the Rudd Ice Company is a nonopoly and is currently charging a price of $10, what would you advise Rudd to Ho? O a. Increase output and hold price constant. O b. Stay where he is currently operating because he is charging the profit- maximizing price. O c. Decrease price and increase output. O d. Increase price and increase output.(units) Price per Unit Quantity Demanded Total Cost of Production (dollars) $85 10 $530 80 11 540 75 12 550 70 13 560 65 14 575 60 15 595 55 16 625 A monopoly producer of foreign language translation software faces a demand and cost structure as given in the table. What is the firm's profit-maximizing output and what is the price charged to sell this output? [HINT: Find TR, MR and MC then use the profit maximizing condition] = OA. P $80; Q = 11 = B. P $70; Q 13 C. P $85; Q = 10 O D. P= $65; Q = 14