Consider the demand curve P = 200 - Q facing a monopolist. The monopolist's cost function is given by C = 40Q. The monopolist is currently producing Q = 90 and charging a price of P = $110 and making a profit of $6300. Which of the following statements is CORRECT? The monopolist is not maximizing profit. To maximize profit, the monopolist should produce Q = 80 and charge a price of $120. Doing so would generate profit of $6400. The monopolist is not maximizing profit. To maximize profit, the monopolist should produce Q = 80 and charge a price of $120. Doing so would generate a profit of $7200. The monopolist is maximizing profit. The monopolist is not maximizing profit. To maximize profit, the monopolist should produce Q = 100 and charge a price of $100. Doing so would generate a profit of $7000.

Consider a discriminating monopolist that sells a product in two isolated geographical areas. The monopolist faces the following demand functions P1 = 100 - Q1 and P2 = 80 - Q2 and the cost function is C = 6(Q1 + Q2) The authorities in market 1 impose a tax of t per unit sold in market 1. How much tax revenue do the authorities in market 1 get?

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…

Consider a monopolist with a total cost function given as C(Q) = 1.5Q2 + 40Q that faces an inverse market demand function P(Q) = 280 − 0.5Q **Calculate the​ profit-maximizing quantity,​ price, and economic profits for this monopolist, with the government imposing a ​$20 per unit tax.  Quantity: ?    (Round your answer to two decimal​ places). Price: ?          ​(Round your answer to two decimal​ places).   Economic​ profits: ​$ ?   ​(Round your answer to two decimal​ places).