Consider the relationship between monopoly pricing and the price elasticity of demand. If demand is inelastic and a monopolist raises its price, quantity would fall by a larger percentage than the rise in price, causing profit to decrease. Therefore, a monopolist will never produce a quantity at which the demand curve is elastic. Use the purple segment (diamond symbols) to indicate the portion of the demand curve that is inelastic. (Hint: The answer is related to the marginal- revenue (MR) curve.) Then use the black point (plus symbol) to show the quantity and price that maximizes total revenue (TR). (?) 10 9 8 7 6 5 3 2 1 0 -1 -2 -3 -4 -5 0 Demand 1 2 3 5 Quantity 6 Marginal Revenue 7 8 9 10 8]+ Inelastic Demand Max TR

Answer everything in the photo please.

What is the profit maximization condition the monopoly uses to choose optimal quantity? Again assume a single price monopoly.   Question 5 options:   MR=FC   P=MC   P=FC   MR=MC

What is price discrimination? From the perspective of running a business, is this a good thing or bad thing for profits?

Define price discrimination. Give two examples of price discrimination. How does perfect price discrimination affect consumer surplus, producer surplus and total surplus?

Explain how price discrimination increases profit.

Use the following information to determine the optimal decisions. Inverse Demand: P = 115 - 0.05Q MR = 115 - 0.1Q TC = 300 + 3Q + 0.2Q2 MC = 3 + 0.4Q Acting like a monopoly what profit would the Pendleton P.A.C make for each show?

Under pure monopoly market (PMM), MR=MC but not equal to Price. Why is this so? And what is the welfare effect of this?  Please explain the negative effect to the consumers when MR is NOT EQUAL to Price?

If the monopolist shown in the following figure could practice first-degree price discrimination, the producer surplus would be: Price (dollars) 50 40 30 20 10 0 $450.00 $1,200.00 $0.00 $900.00 $225.00 30 50 60 MR 100 MC Quantity

Identify sources of (and strategies for obtaining) monopoly power.