It is socially efficient for a firm with monopoly power to increase output and decrease price. Doing so would O consumer surplus, O producer's surplus, and o dead-weight loss. It is possible to do so because the monopolist's O is greater than O, but not rational because profit would

ASAP Suppose the market for kiwis has a demand curve of the form: Qd = 200-2Pd And that the costs of the monopoly producer of kiwis are determined by Total Cost (Q) = Variable Cost (Q) + Fixed Cost. C (Q) = Q² + 100. That is, its marginal cost will be: MgC (Qs) = 2Qs = Ps A. If the Government regulates this monopoly so that it does not generate welfare losses, how much should the maximum price to impose be? B. If the Government decides to grant a subsidy to reach the amount of the social optimum, would it stop having a loss of welfare? C. Bonus How much the subsidy should be for each unit so that the amount is reached in the social optimum.

ABO 0 E O 75% Q Multiple Choice O Refer to the graph for a monopolist in short-run equilibrium. The monopolist will charge a price equal to the distance: OA O О ос MC g AVC MR ATC not labeled on the graph

Many schemes for price discrimination involvesome cost. For example, discount coupons take upthe time and resources of both the buyer and theseller. This question considers the implications ofcostly price discrimination. To keep things simple,let’s assume that our monopolist’s production costsare simply proportional to output so that averagetotal cost and marginal cost are constant and equalto each other.a. Draw the cost, demand, and marginal-revenuecurves for the monopolist. Show the pricethe monopolist would charge without pricediscrimination.b. In your diagram, mark the area equal to themonopolist’s profit and call it X. Mark thearea equal to consumer surplus and call it Y.Mark the area equal to the deadweight loss andcall it Z.c. Now suppose that the monopolist can perfectlyprice discriminate. What is the monopolist’sprofit? (Give your answer in terms of X, Y,and Z.)d. What is the change in the monopolist’s profit fromprice discrimination? What is the change in totalsurplus from…

Question 9 Because a monopolist has market power, which of the following is NOT a characteristic of a monopolist? O It faces a horizontal demand curve O It faces a downward-sloping demand curve O When it produces an extra unit of output, it must lower its price for on all units sold O Its marginal revenue curve is below its demand curve

Assuming that the price is greater than the average variable cost, a monopolist maximizes profits at the output for which (picture a graph): O price is equal to marginal revenue in the downward part of the marginal cost curve O marginal cost is equal to marginal revenue in the upward sloping part of the marginal cost curve O average variable cost and average total cost are in the downward part of their curves and price is equal to marginal cost O average total cost is at the lowest point

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A single-price monopolist is currently producing at an output level where marginal revenue is $14, marginal cost is $16, AVC=$13, and ATC= $15. It is assumed that the monopolist, as usual, chooses its price on the demand curve. To maximize profit or minimize losses in the short run, this monopolist should O A. decrease the price and increase the level of output. O B. increase the price and the level of output. O C. leave the market. O D. decrease the price and the level of output. O E. increase the price and decrease the level of output.

The quantity sold by a monopolist using first degree price discrimination is higher than the quantity sold by a monopolist who cannot price discriminate. O True O False

A monopolist faces the following demand curve: Price $10 $9 $8 $7 $6 $5 $4 $3 Quantity 5 Select one: O a. 31 units O b. 7 units O c. 16 units O d. 23 units 10 16 23 31 45 52 60 The monopolist has total fixed costs of $40 and a constant marginal cost of $5. What is the profit-maximizing level of output?