monopoly sells its good in the U.S. and Japanese markets. The American inverse demand function is Pa = 90-Q₂₁ nd the Japanese inverse demand function is P₁ = 80-2Q;, here both prices, på and p₁, are measured in dollars. The firm's marginal cost of production is m = $25 in both countries. If the firm can prevent resales, what price will it charge in both arkets? (Hint: The monopoly determines its optimal (monopoly) price in each country separately because customers cannot resell the good.) The equilibrium price in Japan is $. (round your answer to the nearest penny) The equilibrium price in the U.S. is S. (round your answer to the nearest penny)

Suppose a monopoly's price elasticity of demand equals-5 and the marginal cost of production equals $500.00. The profit-maximizing price is $ 625 (Enter a numeric response using a real number rounded to two decimal places.) What will be the firm's markup? When maximizing profit, the monopoly's markup is______percent. (Round your response to the nearest percent.)

For the monopoly represented by the figure to the right, at what quantity is its revenue maximized? (Hint: Revenue is maximize where MR = 0.) Why is revenue maximized at a larger quantity than profit? Show the revenue curve. In the figure to the right, let D be demand and MR be marginal revenue. The quantity at which revenue is maximized is Q = 10 units. (Enter your response rounded to the nearest whole number.) Revenue is maximized at a larger quantity than profit because A. costs are decreasing in output. OB. marginal costs can be negative. C. marginal revenue is decreasing in output. OD. D. revenue is greater than profit. OE. profit is decreasing in output. Using the three-point curved line drawing tool, graph the monopoly's revenue curve. Label this curve 'R.' Carefully follow the instructions above, and only draw the required objects. p. $ per unit 30 28- 26- 24- 22- 20- 18- 16- 14- 12- 10- 8- 6- 4- 2- 0- 024 100- 90- 80- 70- 60- 50- 40- 30- 20- 10- 0- 6 MR D 8 10 12 14 16 18 20…

You are the manager of a monopoly, and your analysts have estimated your demand and cost functions as P = 400 - 4Q and C(Q) = 2,000+ 3Q2, respectively, a . What price-quantity combination maximizes your firm's profits? Instructions: Round your response to the nearest penny (two decimal places). Price: $ Quantity: units b. Calculate the maximum profits. Instructions: Round your response to the nearest penny (two decimal places).

Suppose Bang Bang is the only local swimming pool. She believes that there are 10 potential customers. Each of them has an identical demand function of QI = 250 – 0.02P, with QI as the unit of services of each customer. She operates with a constant variable cost of $500 per unit of service.   If Bang Bang is a single price monopoly, calculate the price she should charge for her service. Show your calculations.

Now suppose due to some outside reason, the monopolist must set a uniform price, i.e., p1 = p2 = pu in the problem before.  Write down the monopolist’s problem and solve for the optimal price. (Hint: The aggregate demand is now q = 33 − 2pu).  At the price computed above, compute the optimal quantities sold in each market, i.e., compute and and keep in mind that optimal quantity cannot be less than zero. Compute also the profit earned in each market at the uniform price.  Compute consumer surplus and consumer surplus per capita in each market.  If you were a lobbyist for consumers in market 1, would you be in favor of price discrimination or of uniform pricing? Alternatively, if you were a lobbyist for consumers in market 2, what type of pricing would you prefer?  Now put yourself in the shoes of the CEO whose primary responsibility is to the share holders. If some legislation is passed that either explicitly forbids price discrimination or makes it nearly impossible to do so, what…

The demand for a monopolist’s output is 5,000/(p + 3)2, where p is the price it charges. At a price of $5, the elasticity of demand for the monopolist’s output is (Hint: is it positive or negative?) Please round your answer to two decimal places, if necessary.

Assume a monopolist produces rum and knows there are two groups of rum consumers, 1 and 2, with different price elasticities. Group 1 is highly price elastic with E1=-10; Group 2 exhibits a lower price elasticity of E2=-2.5. Assume the company can separate these two groups (e.g., by handing out special ID cards) and can charge two different prices. If P2=$14, how much can it charge to Group 1?

Consider the case of a monopolist who charges the same price to all consumers. The demand for the good is given by Q=813-7p, where Q denotes the quantity demanded at price p. The firm's total cost of producing Q units is given by the function C(Q) = 7 Q What is the profit maximizing price for this monopolist? (As usual, you must enter a number below, not a ratio, not an expression with symbols..., just a number.)

Consider the relationship between monopoly pricing and the price elasticity of demand.