A monopolist firm faces a demand with constant elasticity of -1.3. It has a constant marginal cost of $18 per unit and sets a price to maximize profit. If marginal cost should increase by 20 percent, would the price charged also rise by 20 percent? OA. Yes. Since the price elasticity of demand is constant, P= 1.3MC. Thus, if MC increases by 20 percent, price also increases by 20 percent. B. No. Since the demand curve is downward sloping, a 20 percent increase in MC will cause the price to increase by more than 20 percent. OC. Yes. Since the price elasticity of demand is constant, P = 4.33MC. Thus, if MC increases by 20 percent, price also increases by 20 percent. OD. No. Since the demand curve is downward sloping, a 20 percent increase in MC will cause the price to increase by less than 20 percent.

Exercise 3.3. Suppose a profit-maximizing monopolist is producing 800 units of output and is charging a price of $40 per unit. a. If the elasticity of demand for the product is -2, find the marginal cost of the last unit produced. b. What is the firm's percentage markup of price over marginal cost? c. Suppose that the average cost of the last unit produced is $15 and the firm's fixed cost is $2000. Find the firm's profit.

What is the usual shape of a marginal revenue curve for a monopolist? Why? When a monopolist identifies its profit-maximizing quantity of output, how does it decide what price to charge? Is a monopolist allocatively efficient? Why or why not? ALCOA does not have the monopoly power it once had. How do you suppose their barriers to entry were weakened? For many years, the Justice Department has tried to break up large firms like IBM, Microsoft, and most recently Google, on the grounds that their large market share made them essentially monopolies. In a global market, where U.S. firms compete with firms from other countries, would this policy make the same sense as it might in a purely domestic context? If public utilities are a natural monopoly, what would be the danger in deregulating them? Why does regulatory capture reduce the persuasiveness of the case for regulating industries for the benefit of consumers? In the middle of the twentieth century, major U.S. cities had multiple…

An amusement park has identified its demand functions as follows: Q = 50-3P The marginal operating cost of each unit of quantity is $5 and there are no fixed costs. The park is a monopolist and exercises significant price making power in the market. 1. If the monopolist charges same price for every unit, for what price are his profits maximized? How many units will be sold at that price? What are his total profits?

Consider the following cost and demand information for a monopolist. Demand is Qm = 34 - 1*Qm,    Total Cost is TC = 20 + 2*Qm + .5*Qm2. At the profit-maximizing quantity, marginal revenue and marginal cost are equal to $........?

Question is in attached image. Thank you! Only answer D,E,F

Suppose the inverse demand function for a monopolist's product is given by P=100-2Q and the cost function isC(Q)=10+2Q. What is the firm's profit-maximizing maximum profits?A. $1,115B. $1,109C. $1,190.5D. $2,100.5

A monopoly sellsits good in the United States, where the elasticity of demand is -2.5, and in Japan, where the elasticity of demand is -5.4. Its marginal cost is $50. At what price does the monopoly sell its good in each country if resales are impossible? The price in the United States is $ (Round your answer to the nearest peniny) The price in Japan is $ (Round your answer to the nearest penny)

Suppose that the monopolist's demand is: P = 8 – Q, and marginal revenue is: MR = 8 – 2Q. - The marginal cost is: MC = 2, and there is no fixed cost. a.Find out the profit maximizing output level. b.Specify the amount of economic profit or loss at the profit maximizing output. c.Calculate the price elasticity of demand at the profit maximizing point and explain it.

Suppose the inverse demand function for a monopolist's product is given by P=100-2Q and the cast function isC(Q)=10+2Q. What is the profit-maximizing price of the firm?A. $15    B. $51     C. $41      D. $32 And what is the profit-maximizing quantity of the firm?A. 24.5B. 18C. 20.5D. 16