A company operates two plants which manufacture the same item and whose total cost functions are C₁ = 5.5 +0.01(q₁)² and C₂ = 8.2 + 0.08(9₂)². where 9₁ and q₂ are the quantities produced by each plant. The company is a monopoly. The total quantity demanded, q = 9₁ +9₂, is related to the price, p, by P = 40 -0.08q.. How much should each plant produce in order to maximize the company's profit?¹ 91 92 = i
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- A company operates two plants which manufacture the same item and whose total cost functions are C₁ = 5.1 +0.04(q₁)² and C₂ = 7.4 + 0.02(92)², where q1 and 2 are the quantities produced by each plant. The company is a monopoly. The total quantity demanded, q = 91 + 92, is related to the price, p, by p = 40 -0.02q. How much should each plant produce in order to maximize the company's profit?¹ 91 = i 92 = iThe names of the compagny is H20 A compagny of water production and distribution company is in a monopoly situation. it's total cost function is given by: CT (q) = q² + 10q where q represents the quantities produced in millions of m ^ 3 of water. She is faced with the following request p = 50-4q with p the price in cents. Please answer the following question a) Calculate the price, quantity and monopoly profit of H20 b) Represent the demand curves of average cost, marginal cost and marginal revenue of H20 c) H20 learns from the news that a potential entrant wants to enter the market by selling 5 units at a unit cost of 20. Determine the price level below which H20 can set a limit price Then check whether the monopoly price calculated in question 1 can be considered a limited price d) Would H20 remain profitable if the entrant were to enter the market anyway ? (for this you have to calculate the market price that will rise as a result of the entry of the competitor) e) The entrant…A compagny WasserProduct, a water production and distribution company is in a monopoly situation. it's total cost function is given by: CT (q) = q² + 10q where q represents the quantities produced in millions of m ^ 3 of water. She is faced with the following request p = 50-4q with p the price in cents. 1) Calculate the price, quantity and monopoly profit of WasserProduct 2) Represent graphically the demand curves of average cost, marginal cost and marginal revenue of WasserProduct 3) WasserProduct learns from the news that a potential entrant wants to enter the market by selling 5 units at a unit cost of 20. Determine the price level below which WasserProduct can set a limit price (it's possible that i need to use the inequality PL < Ce + |a|Qe) Then check whether the monopoly price calculated in question 1 can be considered a limited price 4) Would WasserProduct remain profitable if the entrant were to enter the market anyway (for this you have to calculate the market price that…
- Company XYZ has a monopoly in its market for one of its' products and it serves 3 regional markets with regional demand functions given by. • Market 1: Q1 = 9 – (0.05) P1 • Market 2: Q2 = 10 – (0.1) P2 • Market 3: Q3 = 16 – (0.2) P3 The firm must make more than 10 units: Q > 10. The firm's cost function is C=490-50Q+2.5 Q2. The marginal cost is the same across all markets. Use Excel to set up this problem and: a) Identify the profit-maximizing output values for each market. b) Identify the surplus for each market and profit for the entire market. c) The output, price, and profit if the firm were not to differentiate across the markets? -A manufacturing company has a monopoly on the production. A single (individual) manufacturer demand for mixer is Q = 4 − P. The marginal cost of producing mixer is $1. Solve the following: 1. Profit-maximizing monopoly, quantity, price, and profit from serving this single concrete contractor.2. What would the quantity be if the Manufacturing company serves 100 mixercontractor identical to this one?1) Utku's company is monopoly in the oil market. Demand equation in this market is given as: Q = 100 – 2P and total cost equation is as the following: TC = 2Q2 + 10. Find monopoly quantity, price and profit.
- Question 2 Alice is the monopoly producer for DrinkMeTM, a magical potion that makes you shrink in size. Market demand for this potion is given by p = 60 - 3Q and Alice's costs of production are C(q) = 12g. Please calculate the following quantities. %3D %3D a) Monopoly price, quantity and profits b) The fair market price in perfect competition c) The welfare loss which occurs due to the monopolyYou are the manager of a monopoly. If the marginal cost of your product is $100 and the price elasticity of demand for your product is 3, then the markup of price over marginal cost you should set is equal to. (Round your answer to one decimal place.) (Round your answer to one decimal place.) If the price elasticity of demand is 6 rather than 3, the markup you should set is equal to Use your knowledge of the factors that affect the magnitude of the price elasticity of demand to explain the difference in the markups in your answers to the last two parts. O A. A smaller price elasticity of demand suggests that your good is a normal good, which allows you to set a higher markup. OB. A smaller price elasticity of demand suggests that there are many substitutes for your good, which allows you to set a higher markup. OC. A smaller price elasticity of demand suggests that there are few substitutes for a good, which allows you to set a higher markup. D. A smaller price elasticity of demand…Assume that Gas & Minerals is the only copper mining firm in Chile. The national demand for copper in thousands of tonnes per month is: q^d(p) = 15 - pThe total costs in millions of dollars are: c(q) = 5q(a) What would be the profit-maximising level of production for this firm? Determine the monopoly price and quantify the profits. Graph the demand, marginal revenue and marginal cost, identifying their values along with determining the social loss generated and identifying it in the graph above. Assume now that due to a bad internal restructuring, the operations manager was fired and a professional with little mining experience was hired. The new manager does not know environmental protocol and mining waste (tailings) has gotten out of control and has been dumped into a river. This generated a negative externality on copper production. The estimated damage is US$5 million per 1,000 tonnes.(b) Obtain the social marginal cost of this mining activity.(c) What level of production will…
- In a monopoly type market; the current price is $100.00, the quantity is 10,000, the tax on economic profits 4% of economic profits, the price elasticity of demand (constant) is -2.5, and MC is $60. What is the price with tax for a monopoly market?instructions please tackle d only. answers for a, b and c are attached as photos. The Metro Electric Company produces and distributes electricity to residential customers in the metropolitan area. This company is a monopoly and faces the following (inverse) demand: P = 0.04 – 0.01Q, where Q is the quantity and P is the price per unit. Its cost function is: C(Q) = 0.005Q + 0.00375Q². (a) What is the firm's marginal cost function? What is the firm's marginal revenue function? Find the equilibrium price and quantity. (b) Illustrate graphically the equilibrium price, quantity, consumer surplus, and producer surplus. (c) Compute the equilibrium consumer surplus and producer surplus. Compute the deadweight loss of this monopoly. (d) Now a new competitor, Western Light, with constant marginal costs MC. = 0.025 can potentially enter the market. What can Metro Electric Company do to retain the market? What price would it charge? What quantity would it produce? How do the deadweight loss in this…You are the manager of a monopoly, and your analysts have estimated your demand and cost functions as P = 300 − 3Q and C(Q) = 1,500 + 2Q2, respectively. a. What price-quantity combination maximizes your firm’s profits? Price: Quantity: b. Calculate the maximum profits. $ c. Is demand elastic, inelastic unit elastic Elastic d. What price-quantity combination maximizes revenue? Price: Quantity: e. Calculate the maximum revenues. $ f. Is demand elastic, inelastic, or unit elastic at the revenue-maximizing price-quantity combination? multiple choice Elastic Unit elastic Inelastic