As the manager of a monopoly, you face potential government regulation. Your inverse demand is P = 50 - 1Q, and your costs are C(Q) = 18Q. a. Determine the monopoly price and output. Monopoly price: $______   Monopoly output: units______

Exhibit 9-7 Monopolist (dollars) 10 8 6 0 Quantity earn an hourly profit of $240. MR As shown in Exhibit 9-7, in the short run, the monopoly will: earn an hourly profit of $80. MC break even (i.e., earn zero economic profit). suffer an hourly loss of $160.

Only typed answer  A monopoly has an inverse demand function given by p = 480 – 4Q and a constant marginal cost of 40. Calculate the deadweight loss if the monopoly charges the profit-maximizing price.

Gas Light, Inc. is currently the only natural gas supplier in a region. The company maximizes its profit when it sells 10 billion m³ of gas at $0.60 per m³. Gas Light's marginal cost is constant at $0.30 per m³. If the market was perfectly competitive, it would supply 20 billion m³ of gas at $0.30 per m³. What is the deadweight loss resulting from the monopoly? $ A billion.

a d MC = ATC MR D h Quantity (units) Refer to the figure above. Using the labels provided in the graph, identify the area of deadweight loss that would exist if this were a monopoly market. def acf bcde efgh abd $/unit

Assume the following equations describe the conditions for a monopoly:   Qd = 2,000 - 100P TC = 3,500 + 5q + .005q2 Where Qd is the quantity demanded, P is the commodity's price in dollars, TC is the firm's total cost in dollars and q is the quantity of output produced. Based upon these equations, answer the following questions:   a. What is the firm's equation for total revenue expressed as a function of quantity? b. What is the firm's equation for marginal revenue expressed as a function of quantity? What is the firm's equation for marginal cost expressed as a function of quantity? c. What is the firm's profit maximizing quantity of output? d. What price will the firm charge for the commodity?  e. What would be the socially optimal quantity of output? f. What price would regulators have to establish in order to have the firm produce the socially optimal quantity of output?

You are the owner of a monopoly firm. The demand curve that you face is: 100 0. 5Q - Your Total Cost and Marginal Cost are: 1035 +10Q +0. 5Q2 10 +Q TC |3| MC The government decides to regulate your firm and imposes the Efficient Price. What is the price you must set? Regulated Efficient price $77.5 Regulated Efficient price = $55 Regulated Efficient price = $60 Regulated Efficient Price = $70

A monopoly faces the following TR and TC schedules: TR = 300q – 2q² TC = 12q' – 44q + 60q + 30 %3D %3D What output should it sell to maximize profit?

The presence of a monopoly always reduces total surplus in the economy. Question 10Select one: True False

Hot Air Balloon Rides is a single-price monopoly. Columns 1 and 2 of the table set out the market demand schedule and columns 2 and 3 set out the total cost schedule. Calculate Hot Air's profit-maximizing output and price. Calculate the economic profit. Hot Air's profit-maximizing number of rides is 3 a month and the profit-maximizing price is $160 a ride. >>> Answer to 1 decimal place. C Price (dollars per ride) 220 200 180 160 140 120 Quantity (rides per month) ܘ ܝ ܚ ܚ ܟ ܗ 2 3 4 5 Total cost (dollars per month) 80 160 280 440 640 880