monopolist demand is D = P = $40 - $.25Qm; AC = MC = $5.  The profit-maximizing price (P) and output (Q

A monopolist is deciding how to allocate output between two geographically separated markets. The demand curve for the firm's output in each market is: P1 = 4,000 - 100Q1 P2 = 2,000 - 50Q2 Where P1 and P2 are the prices of the product in each market and Q1 and Q2 are the amounts sold in each market. The firm's marginal cost curve is: MC = 25Q where Q is the firm's entire output (Q = Q1 + Q2) a) how many units should the firm sell in each market? (Keep Q1 and Q2 in decimal form) b) What price should it charge in the first market? (Use Q1 in decimal form) c) What price should it charge in the second market? ( Use Q2 in decimal form)

Assume quantities need not be integers. Assume a profit maximizing monopolist with marginal cost equal to $4 faces demand MWTP(Q) = 14 - 2Q. Assuming it must charge the same price for each unit it sells, what is elasticity of demand at the price it chooses?

A monopolist's inverse demand function is estimated as P= 400 - 2Q. The company produces output at two facilities; the marginal cost of producing at facility 1 is MC₁(Q1) = 7Q₁, and the marginal cost of producing at facility 2 is MC2(Q2)=2Q2- a. Provide the equation for the monopolist's marginal revenue function. (Hint: Recall that Q₁ + Q₂ = Q.) MR(Q) = 400 $ 7Q₁- b. Determine the profit-maximizing level of output for each facility. Instructions: Round your response to two decimal places. Output for facility 1: 14 Output for facility 2: 50 c. Determine the profit-maximizing price. Instructions: Round your response to the nearest penny (two decimal places). 272 x 4 Q2

A monopolist has discovered that the inverse demand function of a person with income Y for the monopolist’s product is P = 0.002Y-Q where P is the price, Y the income, and Q is the output. The monopolist can observe the incomes of its consumers and hence vary its price accordingly. The monopolist has a total cost function C(Q) = 100Q. A. Calculate the profit maximising price as a function of the consumer’s income Y carefully explaining all the steps in the derivation of the formula. B. A monopolist has a constant marginal cost of £2 per unit and no fixed costs. He faces two separate markets in the United States and in the UK. The goods sold in one market are never resold in the other. He sets one price P1 for the US market and another price P2 for the UK market (both measured in £). The demand in the United States is given by Q1=7,000-700P1 and the demand in the UK is given by Q2=1,200-200P1. Calculate the profit maximising output produced and price charged in each country by the…

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?

Eyeglasslux is a single-price monopolist in the eye-glass frame market. It faces a Market demand given by Q=196-2P. Its only cost is a Marginal Cost of MC=Q. What is the (absolute) elasticity of demand at the profit maximizing price?

A monopolist has four distinct groups of customers: group A has an elasticity of demand of 0.2, group B has an elasticity of demand of 0.8, group C has an elasticity of demand of 1.0, and group D has an elasticity of demand of 2.0. The group paying the highest price for the product will be group: a) D. b) C. c) B. d) A.

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

A firm is originally operating as a single-price monopolist that faces a market demand curve P(Q) = 198 –0 and total cost curve equal to TC (q) = 10, 500 + 32Q, with constant MC equal to MC(Q) = 32 for all units produced. Part (a): How much output does the firm produce and at what price is each unit sold for? Part (b): Calculate the firm's profit. The firm now realizes there are actually two distinct groups of consumers that purchase their product, with the following demand functions: P(q1) = 242 – qı P(q2) = 176 – 92 Their total and marginal cost curves have not changed. If the firm wanted to successfully practice third-degree price discrimination: Part (c): How many units of output would they sell to group 1 and how much will each consumer in group 1 pay? Part (d): How many units of output would they sell to group 2 and how much will each consumer in group 2 pay? Part (e): How much profit is earned by the firm when they practice third-degree price discrimination? Part (f): How much…