A monopolist creates because the is greater than the deadweight loss; price; average total cost economic profit; price; marginal cost economic profit; marginal revenue; marginal cost deadweight loss; marginal revenue; marginal cost deadweight loss; price; marginal cost

For a monopolist assume: Demand: P = 19 – Q TC = 3 + Q + 0.5*Q^2 MC = 1 + Q.                                                                                                                                         Find P, Q that maximize profit. What are profits? What if the authorities open to competition. In the competitive market, describe what should happen to P, Q?

A single-price monopolist is only one seller in the market by definition. This means that the monopolist sets the price and the quantity in order to maximize its profit, regardless of the elasticity of the demand. True  False

A monopolist can sell its product at any price it wishes.   Is this true or false

A monopolist has decreasing average costs as output increases. If the monopolist sets price equal to average cost, it will produce too little output from the standpoint of efficiency. maximize its profits. lose money. produce too much output from the standpoint of efficiency.

Suppose a monopolist faces a market demand that is the first two columns in the table below. Also, in the short run, assume that Total Fixed Cost equals $100 and the monopolist has Total Variable Cost according to the table. Find Total Revenue for each price and quantity combination, and then Marginal Revenue as price falls and quantity increases. Fill in the rest of the costs in the table and find profit at each price and quantity combination as the difference between Total Revenue and Total Cost. If profit is less than zero that indicates a loss. What is the maximum profit you found in this table? At what quantity and price combination is profit maximized for this monopolist? Next, verify this result by using Marginal Analysis to find the profit maximizing price and quantity combination. For each quantity, ask yourself if Marginal Revenue exceeds Marginal Cost. If it does, then profits would be increased by producing that quantity. As you go down the table to higher quantities, stop…

This is part 1 of a multi-part question. A monopolist faces the demand curve Q = 144 / P2, where Q is the quantity demanded and P is price. Its average variable cost is AVC = Q1/2 and its fixed cost is 25. 1. Find the monopolist's profit-maximizing quantity. (Round to at least 2 decimal places.)2. Find the monopolist's profit-maximizing price

The inverse demand function of a monopolist is p(y) = 100 – y, and total costs is C(y)= y2 +10. a. Find the profit-maximizing level of production and the maximum profit. b. Find the price-elasticity of the demand at the profit-maximizing quantity.

Monopolist faces a demand curve P = 210-4Q and initially faces a constant marginal cost $40. Calculate the profit maximizing quantity.

The following table (see MS Word/PDF version of Take-Home Quiz #5 handout, page 1) shows a market demand a monopolist is facing. Use the table to answer questions #4 thru #6. Average Marginal Marginal Rev. Total Economic Quantity Price Total Rev. Rev. Cost Cost Profit (Q) (P) (TR) (AR) (MR) (MC) (TC) (II) === =====%3D ====== =====3= 1 35 35 11 11 24 64 32 29 11 22 42 3 29 11 4 17 11 23 11 11 6. 120 11 7 17 -1 11 -7 11 9 99 11 -13 11 10 80 8. 11 [Extra Credit 2 pts] Fill all blanks in the Table 1 on the Quiz #5 handout. You will receive extra credit if you submit the completed table via email. Q4. If the monopolist sells 8 units of its product, how much total revenue (TR) will it receive from the sale? 40 O 87 O 104 O 112 O 164