Economics Suppose that a monopolist supplies a product in two distinct markets, LA and NYC. The demand functions for the two markets are PLA = 27 – 3QLA and PNYC = 42 - 6QNYC. The monopolist has a fixed cost of $12 and a constant marginal cost of $5 per unit. a. If segmenting is feasible, what are the profit- maximizing prices, quantities, and maximized profit? b. If segmenting is NOT feasible, what is the profit- maximizing price, quantity, and maximized profit? c. How much is the difference in total consumer surplus in the two cases? Which case makes consumers better off?

Economics Suppose that a monopolist supplies a product in two distinct markets, LA and NYC. The demand functions for the two markets are PLA = 27 – 3QLA and PNYC = 42 - 6QNYC. The monopolist has a fixed cost of $12 and a constant marginal cost of $5 per unit. a. If segmenting is feasible, what are the profit- maximizing prices, quantities, and maximized profit? b. If segmenting is NOT feasible, what is the profit- maximizing price, quantity, and maximized profit? c. How much is the difference in total consumer surplus in the two cases? Which case makes consumers better off?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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only question #4 please
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…
Suppose that a monopolist supplies a product in two distinct markets, LA and SF. The demand functions for thetwo markets are PLA = 52 – 4QLA and PSF = 70 – 7QSF. The monopolist has a fixed cost of $20 and a constantmarginal cost of $10 per unit.a. If segmenting is feasible, what are the profit-maximizing prices, quantities, and maximized profit?b. If segmenting is NOT feasible, what is the profit-maximizing price, quantity, and maximized profit?c. How much is the difference in total consumer surplus in the two cases? Which case makes consumers better off?
Please describe each step to solve the problem presented below:
Question is in attached image. Thank you! Only answer D,E,F
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Refer to the accompanying table, which represents the costs and production for a monopolist. Price Quantity Fixed Cost Variable Cost $20 0 $10 $0 $18 1 $10 $5 $16 2 $10 $8 $14 3 $10 $18 $12 4 $10 $30 $10 5 $10 $44 1) At Q=2, the marginal cost of this firm is $ ____ 2)The profit made by this profit-maximizing firm is $ __
A simple profit-maximizing monopolist with a continuous linear demand curve has positive marginal costs at all levels of production above X = 0. Which one of the following statements is FALSE in the short run? Select one: a. At the chosen level of output, an increase in the price of the good will necessarily reduce total revenue b.At the chosen level of output, demand for the good is price elastic c. At the chosen level of output, the monopolist is not maximizing total revenue d.At the chosen level of output, economic profit is necessarily positive
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Suppose a monopolist sells a product to faculty members and students on the campus. If the firm sets a single price, the monopolist produces 5000 units and sell them at the price of $3 per unit. At this price, the price elasticity of demand for faculty member is -2.5. And the price elasticity of demand for students is -1.5. The monopolist is considering whether she should set different prices for the faculty members and students and asks for your advice. The monopolist is thinking about charging faculty members a 10% higher price. The quantity demanded by the faculty members would fall by %. The monopolist is thinking about charging students a 10% higher price. The quantity demanded by the students would fall by %. Who should the monopolist charge more? mention faculty and students and how much
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Suppose the inverse demand function for a monopolist's product is given by P=100-2Q and the cast function isC(Q)=10+2Q. What is the profit-maximizing price of the firm?A. $15 B. $51 C. $41 D. $32 And what is the profit-maximizing quantity of the firm?A. 24.5B. 18C. 20.5D. 16