A monopoly has the demand schedule p = 210 − 0.2q and the marginal cost schedule MC = 20 + 0.8q (a) If it can practise first-degree price discrimination how much should it sell? (b) If it can practise second-degree price discrimination and it has already made the decision to sell the first 100 units at a price of £190, what price should it charge for the rest of the units it sells?

Assume quantities need not be integers. Assume a profit maximizing monopolist with marginal cost equal to $4 faces demand MWTP(Q) = 14 - 2Q. Assuming it must charge the same price for each unit it sells, what is elasticity of demand at the price it chooses?

10) There is only one bar at a beach, i.e. this bar is a monopoly. A typical customer has the demand function Q = 80 – 25P. The marginal cost is $10 per customer. Compare profits between two scenarios: charging a single per unit price vs using a two-part tariff.

The marginal cost of production is $4, and assume there is no fixed cost. The farmer is the only seller in the market so it will be a monopoly seller. Suppose the demand for the apple is p=32-2q. 1. What is the monopolist's optimal price 2. At this price, what is the buyer surplus? What is the seller surplus?

What is meant by the term “market power”?   Can a monopolist charge any price it wants because it is the only seller?   What is the profit maximizing /loss minimizing rule a firm should follow regardless of the market structure within which the firm is operating?   If the monopolist is incurring a short run economic loss, what are some options the monopolist has?

If a monopolist faces a demand p(q) = 130-3q and costs c(q) = 2q^2, answer: a) What is the quantity this monopolist would sell? b) What is the price they would charge?

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?

None

True/ False  There is a price discrimination in the monopoly market.

A monopolist faces an inverse demand curve P(q) = 28 – 3q. The cost curve is C(q) = 10q. What is deadweight loss in this market? (a) DWL = 3 (b) DWL = 27/2 (c) DWL = 19 (d) DWL = 27 (e) None of the above.