If a monopoly firm can sell 12 items per day at a price of $150 each, and to increase sales by one (marginal) item per day, the monopolist must lower price to $148, calculate the marginal revenue of the 13th item:

A single-price monopolist has the following equations representing its marginal cost and demand curves: Qd=800-1/3 P MC = 2Q What is the deadweight loss caused by this single-price monopoly?

A monopolist firm faces a demand with constant elasticity of -2.0.  It has a constant marginal cost of $20 per unit and sets a price to maximize profit.  If marginal cost should increase by 25 percent, would the price charged also rise by 25 percent?

Find the economic profit of a monopolist using the following information: Demand: p = 110-2Q Fixed cost: FC = 120 Marginal cost: MC = 10

The accompanying graph depicts the marginal revenue (MR), demand (D), and marginal cost (MC) curves for a monopoly a. Place point Pi at the profit maximizing price and quantitvy assuming that the monopolist can only charge a single price. 100 95 90 85 80 75 70 65 2 60 b. What are the profits of the firm if it charges a single price? 50 45 Suppose the monopolist able to successfully price discriminate between two groups by charging one group $60 and charging $35 to the other group. c. What are the firm's profits if it charges the two prices as mentioned above? 35 30 25 20 15 10 MR 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95100 Quantity

Jackelina's company is a monopoly that faces demand Qd = a - bp, where a and b are positive numbers. The monopolist's marginal revenue function is: MR = a-2bP MR = a/Q - b = MR a/b - 2Q/b MR = a -2bQ

Consider the local telephone company, a natural monopoly. The following graph shows the demand curve for phone services, the company's marginal revenue curve (labeled MR), its marginal cost curve (labeled MC), and its average total cost curve (labeled AC). (Hint: Click a point on the graph to see its exact coordinates.) PRICE (Dollars per month) 160 140 120 100 80 60 40 20 0 0 1 MR 2 3 4 567 QUANTITY (Thousands of households per month) AC MC D 8 (?)

How, if at all, will a monopolist respond to a rise in the price of an input? (provide explanation with graphs)

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…

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