Consider a monopoly market in which the market demand curve is given by P = 240 - 2Q, the marginal revenue curve is MR = 240 - 4Q, the marginal cost curve is MC = 2Q, and there are zero fixed costs. Suppose the government intervenes and turns the market into a competitive market, and all the firms in the market have the same marginal cost curve as the monopolist, MC = 20, and zero fixed costs. How much is the resulting gain in total surplus? 400 800 300 600 оооо

Suppose that the demand a monopoly faces is given by: Q = 10 − P + 10A, where Q is the quantity of output and A is the quantity of advertising. Suppose the cost of advertising and output is given by: C(Q, A) = Q^2 + 100A. Derive profit-maximizing quantity, price, and the quantity of advertising

The market demand for a good in a monopoly is P = 400-2Q. The good can be produced at a constant cost of $40. What is the amount of producer surplus?

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 the usual shape of a marginal revenue curve for a monopolist? Why? When a monopolist identifies its profit-maximizing quantity of output, how does it decide what price to charge? Is a monopolist allocatively efficient? Why or why not? ALCOA does not have the monopoly power it once had. How do you suppose their barriers to entry were weakened? For many years, the Justice Department has tried to break up large firms like IBM, Microsoft, and most recently Google, on the grounds that their large market share made them essentially monopolies. In a global market, where U.S. firms compete with firms from other countries, would this policy make the same sense as it might in a purely domestic context? If public utilities are a natural monopoly, what would be the danger in deregulating them? Why does regulatory capture reduce the persuasiveness of the case for regulating industries for the benefit of consumers? In the middle of the twentieth century, major U.S. cities had multiple…

There is a monopolist,ConcreteMex,in the concretemarketin Mexico. The demand function is QD= 100–50p. The marginal cost of production isc=0.4. (referencing) Question 1.3 ConcreteMex claimed the high price is due to high transportation costs and persuaded the government to help cut down the costs. As a result, for every unit of concrete sold, the government subsidizes ConcreteMex 0.2dollars. What are the new profit-maximizing price and production levels for ConcreteMex? Under the subsidy policy and the new price in Question 1.3, calculate the consumer surplus, producer surplus, and deadweight loss. You do not need to consider government spending for the deadweight loss.

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…

= 240 + 0.5Q², and face 4. A monopolist has the cost function TC(Q) market demand P = 45 – Q. (a) Find the monopoly equilibrium price and output. Find the monopolist's profit.

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.

Assume quantities need not be integers. A monopolist incurs marginal cost equal to MC=Q per unit and faces demand P(Q)=18 – 3 x Q. If there is no fixed cost for production, what is the total cost of production?