A discriminatory monopolist is faced with the following output cost function Q1=24-0.2p1, Q2=10-0.5p2, C=32+40Q where Q= Q1+Q2 calculate the Price and output level that will maximize his profit in each market
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A discriminatory monopolist is faced with the following output cost function Q1=24-0.2p1, Q2=10-0.5p2, C=32+40Q where Q= Q1+Q2 calculate the
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- Consider a monopolistic market with demand function: P = 36 – 0.5Q The monopolist’s marginal cost (MC) and total cost (TC) function are: MC = $2 TC = 4 + 2Q How much total economic profit does the monopolist earn?A monopolist has discovered that the inverse demand function of a person with income Y for the monopolist’s product is P = 0.002Y-Q where P is the price, Y the income, and Q is the output. The monopolist can observe the incomes of its consumers and hence vary its price accordingly. The monopolist has a total cost function C(Q) = 100Q. A. Calculate the profit maximising price as a function of the consumer’s income Y carefully explaining all the steps in the derivation of the formula. B. A monopolist has a constant marginal cost of £2 per unit and no fixed costs. He faces two separate markets in the United States and in the UK. The goods sold in one market are never resold in the other. He sets one price P1 for the US market and another price P2 for the UK market (both measured in £). The demand in the United States is given by Q1=7,000-700P1 and the demand in the UK is given by Q2=1,200-200P1. Calculate the profit maximising output produced and price charged in each country by the…If the monopolist shown in the following figure could practice first-degree price discrimination, the producer surplus would be: Price (dollars) 50 40 30 20 10 0 $450.00 $1,200.00 $0.00 $900.00 $225.00 30 50 60 MR 100 MC Quantity
- If the monopolist shown in the following figure could practice first-degree price discrimination, the consumer surplus would be: Price (dollars) 50 40 30 20 10 0 $450.00 $900.00 $0.00 $225.00 $1,200.00 30 50 60 MR 100 MC QuantityAcme is a monopolist for a good with inverse demand P = 4000 – 6Q, where P is the price in dollars and Q is the amount sold. Acme's variable costs are TVC(Q) = 4Q². With these functions, the marginal revenue is MR(Q) = 4000 – 12Q and marginal cost is MC(Q) = 8Q. a) If Acme has no fixed costs, what is its profit maximizing price? b) If Acme has non-sunk fixed costs of $700,000, is it worth operating or should they shut down?Suppose the monopolist faces the market demand function given by Q=144/p2 The AVC of the firm is given as AVC = Q ½ and the firm has a fixed cost of $ 5 a) determine equilibrium P&Q b) determine the maximum profit
- The total cost of a monopolist is TC(Q)=4Q2+2Q+3. Her inverse demand function is P=130-2Q. You are told that her marginal revenue is 2*4Q+2 and and her marginal cost is 130-2*2Q. You are also told that the firm will not shut down in the short run. Please find the optimal output level for the monopolist.Economics Consider the following cost function faced by the monopolist: TC(q)= 2q2+20q+10. The demand faced by the monopolist is the following: p(q)=200-10q, where q denotes quantity and p denotes price. Find the price and quantity that maximizes profit of the monopolist. If the monopolist becomes a perfectly price discriminating monopolist, calculate the Consumer Surplus and Producer Surplus.A monopolist faces inverse demand P = 150 – 3Q and total cost function TC(Q) = cQ. Find the optimal price, PM, and quantity, QM.
- Suppose a nonlinear price discriminating monopolist faces an inverse demand curve: P = 110-Q, and can set three prices depending on the quantity a consumer purchases. The firm's profit is: π = P₁ Q₁ + P₂ (Q₂ −Q₁) + P3 (Q3 − Q₂) - mQ3, where p₁ is the high price charged on the first units Q₁ (first block) and P2 is a lower price charged on the next (Q₂ -Q₁) units and p3 is the lowest price charged on the (Q3 - Q₂) remaining units. Q3 is the total number of units actually purchased, and m = 75 is the firm's constant marginal and average cost. Using calculus, determine the profit-maximizing values for P₁, P2, and p3, and the firm's profits. The profit-maximizing value for (round your answers to the nearest penny) P₁ P₂ = $ P3 = $ The firm's profit is $ 9 andSuppose that a monopolist offers two different products with demand functions P1 = 56 – 4q1 P2 = 48 – 2q2 The monopolist's joint cost function is C(q1, 92) = qỉ + 5q192 + q? a. Write out the monopolist's profit function as a function of q, and q2.A single price monopolist has a cost function of c(Q) = 10 + Q, where Q is output. It faces the following demand curve: Q°(p) = 0, if p > 24 and Q°(p) = 120/p, if p s 24. What is the profit-maximizing choice of output? The profit maximizing choice of output is = At this optimum level of output, calculate the consumer surplus. In addition, by drawing a graph, show the area representing the producer surplus (label it by PS) and the area representing the deadweight loss (label it by DWL). Calculate the values of producer surplus and deadweight loss.
