1.) Using the point drawing tool, indicate the monopoly output and monopoly price (Monopoly) in the figure to the right. Attach the appropriate provided label. 2.) Using the rectangle drawing tool, shade in monopoly profits (Profit). Attach the appropriate provided label. 3.) Using the triangle drawing tool, shade in the "excess burden" or "welfare costs of the monopoly (Excess burden). Attach the appropriate provided label. Note: Carefully follow the instructions above and only draw the required objects. The monopoly creates excess burden because A. it produces where marginal cost is positive. B. it produces where price equals marginal cost OC. it produces an inefficiently large amount of output. D. it produces where price is above marginal cost. OE. it charges a price that is too low. OC

1.) Using the point drawing tool, indicate the monopoly output and monopoly price (Monopoly) in the figure to the right. Attach the appropriate provided label. 2.) Using the rectangle drawing tool, shade in monopoly profits (Profit). Attach the appropriate provided label. 3.) Using the triangle drawing tool, shade in the "excess burden" or "welfare costs of the monopoly (Excess burden). Attach the appropriate provided label. Note: Carefully follow the instructions above and only draw the required objects. The monopoly creates excess burden because A. it produces where marginal cost is positive. B. it produces where price equals marginal cost OC. it produces an inefficiently large amount of output. D. it produces where price is above marginal cost. OE. it charges a price that is too low. OC

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that a monopolist’s demand curve is given by P(y) = 28−3y and its marginal cost is given by MC(y) = y, where y denotes output.a. Find the profit-maximizing quantity and price for this monopolist. Illustrate your answer with a graph.b. Calculate the consumer surplus, producer surplus and thedeadweight loss of this monopoly. (You may find it helpful to refer tothe graph you drew for part a.)c. Carefully explain why a monopoly creates a deadweight loss.
PRICE OR COST (per pound) $14 13 12 11 10 6 8 7 S 5 321 0 MC=MR Marginal cost 1 2 3 Average total cost MC=p 4 5 6 QUANTITY (pounds of fish per hour) Marginal revenue Demand Monopoly produces less and charges more. 7 8 9 The information diagram above shows a nondiscriminating monopolist's demand, marginal revenue and costs. What is the monopolist's economic profit? Please do not input the $ sign in the answer box. If your answer is $200, please input 200 for your answer.
1 Suppose that a monopolist has a patent for widgets and the market demand curve Q(P) is:Q(P) = 60 – 2P,where P is the price in dollars and Q is quantity. a. Solve for the inverse demand P(Q) curve by solving the demand curve for P in terms of Q. b. Using your answer from (a), express the monopolist’s total revenue in terms of Q as TR(Q) = QP(Q). c. Calculate the monopolist’s marginal revenue MR(Q) by differentiating the total revenue you found in theprevious step: MR(Q) = dTR(Q) / dQ. PLEASE SHOW ALL WORK
If a monopoly car[ sell 120 units of output for $11 each or 110 units of output for $12 each, we can safely conclude that for this monopoly, the profit-maximizing level of output is: a. greater than 120 units. b. less than 120 units. c. less than 110 units.. d. greater than 110 units.
8. Natural monopoly analysis The following graph gives the demand (D) curve for water services in the fictional town of Streamship Springs. The graph also shows the marginal revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve for the local water company, a natural monopolist. On the following graph, use the black point (plus symbol) to indicate the profit-maximizing price and quantity for this natural monopolist. ? PRICE (Dollars per hundred cubic feet) 40 36 32 28 24 20 16 12 8 0 0 1 MR 2 8 3 4 5 6 7 QUANTITY (Hundreds of cubic feet) ATC True MC False 9 10 The water company must own a scarce resource. D Which of the following statements are true about this natural monopoly? Check all that apply. The water company is experiencing economies of scale. The water company is experiencing diseconomies of scale. + In order for a monopoly to exist in this case, the government must have intervened and created it. Monopoly Outcome True or False: Without…
Refer to the accompanying figure to answer the following questions.27. The revenue received by the profit-maximizing monopolist is ________.28. The deadweight loss associated with this profit-maximizing monopoly is equal to ________.29. The consumer surplus associated with the profit-maximizing monopoly is equal to ________.30. The consumer surplus that is transferred to the monopolist as a result of the monopolist takingover the market is ________. ( Please solve ASAP all the subparts 27 to 30 . I will definitely give you thumbs up. Thank you)
*You only need to answer question f*
The figure that is talked about in part B is also attached.
Below is a representation of the demand curve for diamonds. Assume DeBeers is operating as a monopoly. 1. As a monopolist, what is the total effect of a price change from $2,400 to $1,600 on revenue? Break this change into an increase and a decrease. If you were to do exercise 1 in for every marginal change in price, you would find the marginal revenue curve. The marginal revenue diagram has been provided for the next exercises, along with the marginal costs for DeBeers.