Firm A and B both produce good Q. Demand is Q-45-0.5P, where P is price. Both firms have total cost TC-6 + 16Q, where i A.B. If the firms collude to produce the monopoly output, the resulting consumer surplus is? O342.25 O 354.75 362.22 370.74
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- Figure: Monopoly Profits 2 P. 18 16 14 12 10 6. MC = AC MR 0 20 40 60 80 100 120 140 160 180 Q What is the consumer surplus at the monopolist profit-maximizing output and price? O $245 $630 O $315 $280 4. 2)In this diagram, when this monopolist chooses the price and quantity which maximizes profit: 17.10- 12.00 8.40 6.00 0 $ 0 a OB and C are correct g d 2,720 e Marginal Revenue h O B. Deadweight-Loss is equal to "areas (c)+(f)." O A and C are correct Marginal Costs of Production O C. Producer's Surplus (i.e., "Monopoly Surplus") is equal to "areas (a)+(b)+(d)+(e)+(g)." ● A. Total Consumers' Surplus is equal to zero 4,640 5,920 Demand quantity 9,120Since the bell pepper market consists of a single firm, that firm is actually a monopoly. What is the quantity of bell peppers sold by the monopolist? Here are the previous tables, reprinted for your convenience: That firm's marginal cost schedule is: 0 |1 12 3 4 5 Furthermore, assume that the market demand is given by POHANS 11 3 Less than 2 2 Between 2 and 3 MC 13 5 7 9 11 Quantity demanded 1 2 3 4 5
- The accompanying diagram shows demand, marginal revenue, and marginal cost of a monopolist. $120 MC 110 100 90 80 70 60 50 40 30 20 10 MR 0+ Quantity o i 2 3 4 s6i s 9 10 11 12 13 14 is a) Determine the profit-maximizing output and price. b) What price and output would prevail if this firm's product was sold by price-taking firms in a perfectly competitive market? c) Calculate the deadweight loss of this monopoly. d) Suppose MC increases. How would this affect monopoly price and quantity? e) Suppose market demand became less price elastic (hint: became flatter). How does this affect monopoly price and quantity?A monopolist has constant marginal cost equal to 30 and faces a market demand curve given by the following p= 100-2Q. If the monopolist is a perfect price discriminating monopolist its level of profit will be equal to (assume there is no fixed cost): O 1225. O 2450. O2275. O 1150. auto.proctoru.com is sharing your screen. Stop sharing Hide Next • Previous UN 18 SAPQuestion 26 Suppose a uniform price monopoly has a demand curve given by p=12-q (& MR=12-2q) and total cost given by TC=2q (& MC=2) This monopolist have a learner's index of than competitive quantity % and produce an output % smaller O 71, 25 52, 45 71, 100 О 100, 82
- [Q: 11-4660750j Consider a monopoly that faces an inverse demand curve with a constant elasticity, p(Q) = Q°, and that has a constant marginal cost, MC(Q) = m. If the own-price elasticity is e = - 6.9, marginal costs are m=7, and the government imposes a specific tax on the monopolist, what will be the tax incidence on consumers? O A. 65.42% O B. 38.1% OC. the same incidence as when the tax is imposed on a perfectly competitive firm. O D. 50% O E. 116.95%Cost & Figure 15 Revenue $10 per unit MC $9 $8 АТС $7 $6 $5 $4 $3 $2 $1 MR 2 3 4 7 8 10 Quantity (in thousands) Refer to the above Figure 15 which shows cost curves, a marginal revenue (MR) curve and a demand curve faced by a monopolist. If this monopolist is profit maximizing and does not price discriminate, it will produce ( Select ] v units of output and charge a price of [ Select ] per unit. Given its cost curves, we can tell that this monopolist is currently earning [ Select ] economic profit. According to the classical welfare economics, the socially efficient quantity to be produced in this market would be [ Select ] units of output and a socially efficient price would be [Select ] per unit.Indicate whether the statement is TRUE, FALSE, or UNCERTAIN and explain why. 1. It is economically more efficient to have a monopolist that discriminates perfectlythan a monopolist that sets a single price. 2. If a monopsonist faces a perfectly elastic supply curve, there will be no deadweightloss relative to the competitive outcome 3. In a Cournot duopoly market, the two firms agree to produce half of the monopolyoutput level for that market and split the resulting profit. Since the monopoly profit is the highest profit that can be obtained, the two firms will always stick to that agreement even if it’s not legally (or in any other way) binding.
- Exhibit 9-4: A Monopoly Total Quantity Total Fixed Variable Price Demanded Cost Cost $100 $30 $0 90 1 $30 20 80 $30 48 70 3 $30 78 60 $30 110 50 $30 150 Refer to Exhibit 9-4. At an output level of 4 units, the monopolist earns a total profits of about $70.00 O $100.00 O $82.00 $102.00In which of the following situations would the quantity supplied to the market increase? A price ceiling O below the competitive equilibrium price in a competitive market. above the unregulated monopolist price, but above the fırm's average total cost for a natural monopoly. none of the other answers are correct. A price ceiling never increases the quantity supplied to a market. O below the unregulated monopolist price, but above the firm's average total cost for a natural monopoly. above the competitive equilibrium price in a competitive market.The following graph shows the demands and marginal revenue in two markets, 1 and 2, for a price discriminating firm along with total marginal revenue, MRT, and marginal cost. Price and cost (dollars) 50 40 30 20 10 0 50 Multiple Choice O 100 150 What price should the firm charge in each market? P₁ = $20, P₂ = $32.50 P₁ = $35. P₂- $22.50 = P₁ = $20, P2 = $20 200 P₁ = $27.50, P₂ = $35 MR2 250 Quantity MC 300 D₁ L 350 Impossible to say because market demand is not given. MRT 400 450 D₂ 500 Q