A patent gave Sony a legal monopoly to produce a robot dog called Aibo ("eye-BO"). The Chihuahua-size pooch robot can sit, beg, chase balls, dance, and play an electronic tune. When Sony started selling the toy in July 1999, it announced that it would sell 3,000 Aibo robots in Japan for about $2,000 each and a limited litter of 2,000 in the United States for $2,500 each. Suppose that Sony's marginal cost of producing Aibos is $500. Its inverse demand curve is Pj = 3500 - 0.5Qj in Japan and Pa = 4500 - Qa in the United States. Solve for the equilibrium prices and quantities (assuming that U.S. customers cannot buy robots from Japan). The equilibrium quantity in Japan is 3000 and the price, pj, is $ 2000. (round your answers to the nearest integer) The equilibrium quantity in the U.S. is 2000 and the price, pa, is $ 2500. (round your answers to the nearest integer) Show how the profit-maximizing price ratio depends on the elasticities of demand in the two countries. Pj Pa 1+1/a 2,000 1+1/-1.25 2,500 1+1/ 1+1/-1.33 (enter the price elasticities at the profit-maximizing price and quantity for each country, rounded to two decimal places) What are the deadweight losses in each country, and in which is the loss from monopoly pricing greater? The deadweight loss in Japan is $ The deadweight loss in the U.S. is $ million. (round your answer to two decimal places) million. (round your answer to two decimal places)

Consider a firm, Shamrock Ink, that has some monopoly power in the market for green ink pads. The demand for their green ink pads is P = 2500 – 2.5Q with an associated marginal revenue of MR= 2500 – 5Q. Where Q is thousands of ink pads. Their marginal cost of producing green ink pads is MC = 20Q. In order to maximize profit, Shamrock Ink should produce thousand ink pads and charge a price of $ (Round answers to two decimals if necessary.)

For people with life-threatening allergies, carrying a device that can automatically inject epinephrine (called an autoinjector) is a necessity. In the summer of 2016, Mylan, the maker of the widely used autoinjector EpiPen, found itself with a virtual monopoly. A year earlier its primary competitor, Auvi-Q, was recalled amid fears that it would malfunction and deliver the wrong dose. In addition, the FDA denied the drug producer, Teva, from releasing a generic autoinjector. Prior to these events, a two-pack EpiPen sold for approximately $100. But during that summer, Mylan raised the price to over $650 per pack, leading to extensive news coverage, popular online petitions, and outrage on the part of consumers. Mylan countered that many consumers received their EpiPens through their medical insurance, hence they were protected from the price increase. For those who didn't have insurance coverage and had to pay the full price, Mylan offered a $300 savings card. a. In the graph, shade the…

Use the following graph of a monopoly market to answer this question: P $13 $10 150 300 Which of the following statements is an accurate interpretation of the graph? This firm engages in perfect price discrimination; 150 of its customers are willing to pay exactly $13, and 150 are willing to pay exactly $10. This firm price-discriminates by selling its product for $13 to the 150 consumers willing to pay at least $13, and selling it for $10 to the 150 consumers willing to pay between $10 and $13. This firm engages in price discrimination by negotiating on price with each of its customers. This firm price-discriminates by selling its product for $13 to the 150 consumers willing to pay at least $13, and selling it for $10 to the 300 consumers willing to pay between $10 and $13. This firm engages in perfect price discrimination; 150 of its customers are willing to pay exactly $13, and 300 are willing to pay exactly $10.