Figure 15-7 Price $20 15 10 O 100 150 200 Marginal Cost Demand Quantity Marginal Revenue Refer to Figure 15-7. To maximize its profit, which outcome would a monopolist choose?

Figure 13.9 Revenue and costs 27 24.50 21 13 # Demand MO 600 800 940 1100 MC ATC B) $11.50 C) $21 D) There is no difference. Quantity Figure 13.9 shows the demand and cost curves for a monopolist. Refer to Figure 13.9. At the profit-maximizing quantity, what is the difference between the monopoly's price and the marginal cost of production? A) $8

1.  Using a graph, show a situation in which a monopolist is incurring short-run losses. Explain how this is possible.  2.  Julee has estimated the demand and marginal revenue for her product. They are P = 100 - 2Q (quantity) and MR = 100 - 4Q, respectively. She also experiences constant marginal cost of $16. a. Does Julee have any market power? How can you tell? b. What is Julee’s profit-maximizing quantity? c. What price should Julee charge at that profit-maximizing quantity? 3. Explain a situation in which, when holding costs constant, a monopolist that was earning economic profits in the past can later incur an economic loss.

9 The total revenue curve for a monopolist will do which of the following? A O Start high, decline, and then rise BO Start low, rise, and then decline Start high, rise, and then decline DO Start low, decline, and then rise

find deadweight loss

Chapter 9 - Monopoly OPEN Suppose the following are true for a monopolist market: P = 450 - 16Q MR = 450-32Q MC = 55+ 37Q ATC=55+ 18.5Q What is the profit maximizing Price and Quantity? Q* = P = S How much profit did the monopolist earn? Profit = S O E a hp * a

Suppose there are 5 types of consumers: Type A. Type B. Type C. Type D, and Type E. There are 3,000 of each type. Two software products are sold by a monopolist: spreadsheets and word processing. Assume the marginal cost of production is $0. Consumer Type A B C D E Number 3,000 3.000 3,000 3.000 3,000 Spreadsheet 800 300 200 100 0 b. What is profit at this pricing policy? $ Willingness to Pay Word Processor Instructions: Round your answers to the nearest whole number. a. What will be the profit-maximizing bundle price? $ 0 100 200 300 800 Both 800 400 400 400 800 c. How will profit from this pricing policy compare to profit under independent pricing of the two goods? When pricing independently, the profit-maximizing price for spreadsheets is $ processing is $ d. What is profit under independent pricing? $ and the profit-maximizing price for word

16 The following table shows a monopolist's demand curve and the cost information for the production of its good. What will their profits equal? Quantity Price per Unit Total Cost 10 $100 $100 20 $80 $400 30 $60 $800 40 $40 $1,400 50 $20 $2,400 A $1,000 BO $1,600 CO $1,200 DO $800

2. As a monopolist, what quantity does DeBeers produce? What price do they charge? An ATC curve has been provided for DeBeers. These costs include marketing, mining exploration, and more.

Price MC $33 $30 $20 $18 $16 8 10 15 MR ATC Quantity The graph shown represents the cost and revenue curves faced by a monopoly. What profit is earned by the monopolist in the short run? $150 $128 $450 $330 ◄ Previous Next ▸