A monopolist with constant marginal costs faces a demand curve with a constant elasticity of demand and does not practice price discrimination. True or False: If the government imposes a tax of $1 per good sold by the monopolist, the monopolist will increase his price by more than $1 per unit. True False

Suppose a monopolist faces a demand equation given by P=20-Q, and a marginal revenue equation given by MR = 20-2Q, and MC=AVC=ATC=$6. What is the deadweight loss associated with the monopolist?   a) $8.5   b) $33.25   c) $24.5   d) $12.5

If the monopolist shown in the following figure could implement a two- part tariff, the entry fee would be: $0. $225. $450. $900. $1,200.

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

Consider a monopolist operating on a market with a downward sloping demand curve. The monopolist has a constant marginal cost and no fixed cost. At the current level of production and at the current price level, the price elasticity of demand is equal to -0.8. Assume the monopolist wishes to maximise profits.   Would we be able to say anything about whether the monopolist has chosen a price and quantity that maximise profits? Explain your answer by means of diagrams (maximum 150 words)      2. What is the price elasticity of supply in this market?

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…

Suppose the market demand function (expressed in dollars) for a normal product is P= 90-q, and the marginal cost (in dollars) of producing it is MC = 1q, where P is the price of the product and q is the quantity demanded and/or supplied  1. Compute the consumer surplus and the producer surplus assuming this same product was supplied by a monopolist. Note that the monopolist’s marginal revenue curve has twice the slope of the demand curve. 2.  Compare and contrast economic surpluses under monopoly market vs competitive market.  3.

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

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The demand for good X is given by x = 586 p-6. The good is sold by a monopolist with cost function C(x ) = 4 x and whose is aim is to maximize profit. The firm charges all customers the same price. If the government imposes a per unit tax equal to 4 dollars on the firm, what price will the monopolist charge consumers?