ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- An industry with only one producer has a demand curve of P = 90-Q, with price in dollars and quantity in thousands. The monopolist's marginal cost curve is MC = 30 + 2Q. What is the deadweight loss of monopoly in this industry? O $100,000 O $37,500 O $72,667 $50,000arrow_forward6. The total cost curve for firms in a natural monopoly is estimated to be: TC = 2Q3 – 100Q² + 10000Q The government has a desired industry output of 100. What is the minimum efficient scale in this industry? O 5% O 10% O 12.5% O 25% O 50%arrow_forwardQuestion 9 Because a monopolist has market power, which of the following is NOT a characteristic of a monopolist? O It faces a horizontal demand curve O It faces a downward-sloping demand curve O When it produces an extra unit of output, it must lower its price for on all units sold O Its marginal revenue curve is below its demand curvearrow_forward
- Please helparrow_forwardThe following graph shows the demands and marginal revenue in two markets, 1 and 2, for a price discriminating firm along with total marginal revenue, MRT, and marginal cost. Price and cost (dollars) 50 40 30 20 10 0 50 Multiple Choice O 100 150 What price should the firm charge in each market? P₁ = $20, P₂ = $32.50 P₁ = $35. P₂- $22.50 = P₁ = $20, P2 = $20 200 P₁ = $27.50, P₂ = $35 MR2 250 Quantity MC 300 D₁ L 350 Impossible to say because market demand is not given. MRT 400 450 D₂ 500 Qarrow_forwardThe figure below shows the cost and revenue curves faced by a monopolist. The profit-maximizing output and price for the monopolist are: Figure 9.1 $/Q $30 24 222 420 22 20 10 0 50 100 150 117 MC ATC MR 200 AVC O 117 units and $14, respectively. O 150 units and $22, respectively. O 150 units and $14, respectively. O 117 units and $22, respectively. O 117 units and $24, respectively. D Qarrow_forward
- A single-price monopolist is currently producing at an output level where marginal revenue is $14, marginal cost is $16, AVC=$13, and ATC= $15. It is assumed that the monopolist, as usual, chooses its price on the demand curve. To maximize profit or minimize losses in the short run, this monopolist should O A. decrease the price and increase the level of output. O B. increase the price and the level of output. O C. leave the market. O D. decrease the price and the level of output. O E. increase the price and decrease the level of output.arrow_forwardConsider the following table for a monopolist to answer the question. Quantity Price (P) Total Marginal Total cost (0) revenue revenue (TC) (TR) (MR) 0 1 2 3456 O 7 8 9 10 48 O 44 40 68 64 The profit-maximizing price for the monopolist is S O 36 60 56 52 48 44 40 36 32 28 40 72 92 100 108. 112 128 160 200 256 320 Marginal cost (MC)arrow_forwardA monopoly firm's total cost is: TC(Q) = Q° + 15Q + 225. if the industry's demand curve is described by P= 195 - 4Q. How much profit will this firm make if it is applying the profit maximizing rule? (Hint: MC = 20 + 15) O a$ 2025 O b.$ 1575 Oc.$ 279 O d. $ 3775 O e.$ 506arrow_forward
- Question 11 A firm's market demand for a monopolist is given by P= 120-2Q. His marginal cost of production is 2Q. What level of output would maximize profits? O 0 120 20 30arrow_forwardThe monopolist has constant marginal and average cost AC-MC=70 and faces the market demand P120-Q. Suppose the monopolist can perfectly price discriminate by setting a two-part tariff: that is, the monopolist charges the consumer a fixed fee Fand a per unit price p. What are the optimal values of Fand p that the monopolist sets? O F-$2500, p-$70 O F-$3500, p-$70 O F-$2375, p-$95 O F-$1250, p-$70 O F-$2975, p-$85arrow_forwardSuppose that the monopolist sells its goods for two segments of the population and the demand functions are given by Q, = 120P * and Q, = 320P,.f the monopolist can produce at AC-MC=6 and can discriminate the prices what are the optimal prices, respectively? %3D %3D O $7, $8 O $7, $4 O $4, $7 $8, $7arrow_forward
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