A monopolist sells the same product at the same price into two different markets. The demandfor the product in market #1 is denoted D,(p) = 15 – p where p is the unit price. The demandfor the product in market #2 is given by D2(p) = 40 – 6p.1. If the monopolist sets a price of $8 per unit, what is the total demand?2. Explain why elasticity of total demand is not defined at a unit price of 20.3

onopolist sells the same product at the same price into two different markets. T he product in market #1 is denoted D1 (p) = 15 – p where p is the unit price. T he product in market #2 is given by D2(p) = 40 – 6p. If the monopolist sets a price of $8 per unit, what is the total demand? Explain why elasticity of total demand is not defined at a unit price of 20.

onopolist sells the same product at the same price into two different markets. T he product in market #1 is denoted D1 (p) = 15 – p where p is the unit price. T he product in market #2 is given by D2(p) = 40 – 6p. If the monopolist sets a price of $8 per unit, what is the total demand? Explain why elasticity of total demand is not defined at a unit price of 20.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

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.
As a monopolist, Nancy must contend with the market demand curve shown below. Would her exclusivity result in a deadweight loss? Explain in detail.
Suppose a monopolist sells a product to faculty members and students on the campus. If the firm sets a single price, the monopolist produces 5000 units and sell them at the price of $3 per unit. At this price, the price elasticity of demand for faculty member is -2.5. And the price elasticity of demand for students is -1.5. The monopolist is considering whether she should set different prices for the faculty members and students and asks for your advice. The monopolist is thinking about charging faculty members a 10% higher price. The quantity demanded by the faculty members would fall by %. The monopolist is thinking about charging students a 10% higher price. The quantity demanded by the students would fall by %. Who should the monopolist charge more? mention faculty and students and how much
Give typing answer with explanation and conclusion A monopolist faces market demand given by P = 1000 – 10Q. For this market, MR = 1000 – 20Q, MC = 100 + 10Q and ATC = 100 + 5Q. If the monopolist does not price discriminate, what is the value of consumer surplus?
Monopoly has a fixed cost FC=10 and her MC=4. The first group of customers has demand Q=20-0.5P, the second group has demand Q=30-P. Monopolist charges a unique price (does not price discriminate). Find the profi of the monopolist. Calculate the profit of a monopolist if he engages in third-degree price discrimination
Suppose that a monopolist sells a product to men and women. If the firm sets a single price, the monopolist would produce 100000 units and sell them at a price of $5.00 per unit. Suppose that at that price, the price elasticity of demand for men is -0.75 and the price elasticity of demand for women is -2.50. The monopolist is considering whether he should set discriminatory prices and asks for you're advice. Part 1 Suppose the monopolist is thinking about charging men a %10 higher price. If the monopolist does so, the quantity demanded by men would fall by _______% (give answer to one decimal) Part 2. Suppose the monopolist is thinking about charging women a 10% higher price. If the monopolist does so, the quantity demanded by women would fall by ________% (give answer to one decimal)
The figure at right shows the demand line, marginal revenue line, and cost curves for a single-price monopolist. Now suppose the monopolist is able to charge a different price on each different unit sold. The profit-maximizing quantity for the monopolist is whole number.) (Round your response to the nearest D Price ($) 1000- 900- 800- 700- 600- 500- 400- 300- 200- 100- 0- 0 MC ATC D MR 50 100 150 200 250 300 350 400 450 500 Quantity 17
. Let the demand curve for a monopolist’s product be P = 100 – 2Qd and the marginal cost of production be constant at MC = 10. Suppose that the firm considers moving from a uniform pricing strategy to a two-block tariff where the first block provides 15 units at a price of P1 = $70 and the second block provides an additional 15 units at a price of P2 = $40. How much does the monopolist’s profit rise with this scheme?
A monopolist has estimated that IF he enters an industry, he will have fixed costs of $600 and variable costs of Q ^ 2 The price is 2Q - 120 . Will he enter the industry?
The Amazing Restaurant is the only restaurant in Amazing Island. The restaurant provides dining services to two distinct market segments: local residents and tourists. In each market segment, the demand curve has constant elasticity. The price elasticity of the tourists’ demand is -1.33, while the price elasticity of the locals’ demand is -1.5. a) Suppose that the marginal cost is constant for each market, and equal to $15 per meal. What prices should the monopolist charge in each market segment? [Hint: consider the markup formula: [(P-MC)/P = -1/e] b) As part of an effort to encourage tourism in the island, the local government decided to subsidize the restaurant by $5 for every tourist who dines at the restaurant. What prices should the monopolist charge now in each market segment?
If a monopolist could sell 7 units of output for $41 each or 8 units of output for $39 each, what is the marginal revenue of the 8th unit of output?