300220MC=ATC150MR5080a) If the above figure represents perfectly price discriminating monopoly market, then i) how it wouldset output and charge price? Also find out ii) profit and ii consumer surplus and ii) deadweight loss forperfectly price discriminating monopoly.b) Now if the firm would behave like a perfectly competitive firm, then find out i) price and outputi)profit and ii) consumer surplus. And deadweight lossc) From your calculation of a) and b) which market is more desirable to consumer? And to producer?Give adequate reason.P.4.

A. Perfectly price discriminating monopolist produces at MC=P. Q=80 P=150 ii. Profit=…

Answered: 300 220 MC=ATC 150 D MR 50 80 a) If the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. Asssume the following equations describe the conditions for an unregulated monopoly: Qd = q = 25,000 -100P or P = 250-0.01q TC = 480,000 + 70q + 0.005q2 where Qd is the quantity demanded for the firm, P is the commodity's price in dollars, TC is total cost in dollars, and q is the quantity of output produced. Based upon the above equations, answer the following questions: a. What is the firm's profit maximizing quantity of output? b. What price will the firm charge for the commodity c. What does the firm's total economic profit equal? d. What is the amount of deadweight loss that exists given the monopoly is unregulated? Assume the government is now going to regulate this monopoly, and the regulators want to guarentee the monopolist produces the socially optimal quantity of output. e. What is the socially optimal quantity of output? f. What price would regulators establish to guarantee the monopolist produces the socially optimal quantity of output? g. What does the firm's…
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35. Consider a publicly owned nondiscriminating monopoly whose marginal cost is 10, whose average cost is 10 +90/Q, and whose demand curve is P = 100 –-Q, where P is price and Q is quantity. The government instructs the firm to produce a quantity such that MC = P. Which of the following statements is true? %3D (a) The firm makes a profit of 90 (b) The firm breaks even (c) The firm requires a subsidy of 90 (d) The firm makes a profit of 100 (e) The firm requires a subsidy of 100
Question 2
Monsanto holds significant regional monopoly power-in some regions they are a true monopoly being the only seller of agriculture seeds. If the elasticities of demand, JEDI, for soybean seeds is 3.5, and 3 for corn, then the profit-maximizing price (relative to marginal cost) for soybeans is times marginal cost, and the price is times marginal cost for corn. Round to one decimal if needed. A Moving to another question will save this response. « >
Consider the weekly market for gyros in a popular neighborhood close to campus. Suppose this market is operating in long-run competitive equilibrium with many gyro vendors in the neighborhood, each offering basically the same gyros. Due to the structure of the market, the vendors act as price takers and each individual vendor has no market power. The following graph displays the supply (S = MC) and demand (D) curves in the weekly market for gyros. Place the black point (plus symbol) on the graph to indicate the market price and quantity that will result from competition. PRICE (Dollars per gyro) 5.0 4.5 4.0 3.5 3.0 2.0 1.5 1.0 0.5 0 0 10 20 30 Competitive Market 40 60 QUANTITY (Gyros) 50 70 80 S=MC D 90 100 PC Outcome (?) Now assume that one of the gyro vendors successfully petitions the neighborhood development board to obtain exclusive rights to sell gyros in the neighborhood. This firm buys up all the rest of the gyro food trucks in the area and begins to operate as a monopoly.…
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Please answer both questions. Think about the following categories: number of firms, type of product, pricing, market knowledge, entry and exit in the market, and the elasticity of the product. For each category, state the ways the diamond industry was consistent with the characteristics of a monopoly market at the beginning of 20th century. Describe how the diamond market changed in the latter half of the 20th century.
1) With monopoly, we only specify long run cost functions because we are not as interested in the shut down decision and we don't have firm entry to compete away profit. Still, to make the math work, our monopolist cost functions often have fixed costs. Let's solve the following question: EagleSOFT has developed a computer program that will send UNT sports teams scores directly to purchaser's phones as text messages. Demand and total cost for the software company is described by the following equations: Demand: P = 70 -0.05Q, Cost: C = 4000 + - 10Q. a) What is the firm's level of output, the price they should charge, and their profit? b) What is the demand elasticity and Lerner index at the level of output?
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11. In a particular industry the minimum value of long run average cost is reached when a firm produces 1,000 units of output per period. At this output rate, long run average cost is $ı per unit of output. The market demand curve for this product is as follows: Price Quantity $3.00 1,000 8,000 12,000 20,000 2.00 1.00 .50 Is this industry a natural monopoly? Why or why not?
1. Given the demand function and total cost function in monopoly market: Q = 120 – 5P TC = 100+3Q+0.005Q2 where Q is the quantity produced, P is the price and TC is the total cost ($). (1) Please find the optimal Q and P for the objective of Maximum Total Profit. (2) Please find the optimal Q and P for the objective of Maximum Net Total Benefit. (3) Please compare the social welfare, consumer surplus and producer surplus for these two objectives. 2. What is Oligopoly? Please give 5 examples of Oligopoly market.

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