Positive Economic Profits are A long-run operating condition necessary for a monopolist Profits above what it takes to keep the entrepreneur in that business Equal to producer surplus Equal to the markup of price over Average Total Cost

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 faces two demand curves in two separate markets. The Market Demand in the first market is P1=100-Q1 and in the second market it is P2=50-0.5Q2. The marginal & average costs are constant at 10 (MC=AC=10). Find the Monopoly Price and Quantity in each market. Find the Perfect Competition Price and Quantity in each market. Calculate Profit, Social Welfare (Consumer and Producer Surpluses), and Dead Weight Loss in both situations and in both markets.

A monopolist sells output for $4.00 per unit at the current level of production. At this level of output, the marginal cost is $3.00, average variable costs are $3.75, and average total costs are $4.25. The marginal revenue is $3.00. What is the short-run condition for the monopolist and what output changes would you recommend?

Suppose Delta Airlines is a monopolist in the Atlanta market with a demand schedule:P = 400-.5*Q,and marginal cost scheduleMC=AC=Scomp=100.Scomp is the supply schedule for a competitive market. Find the profit-maximizing price for Delta?

the inverse demand for its product is given P=80- 2Q; total costs for this monopolist are estimated to be C(Q)=100+20Q+Q^2; consider a competitive economy; determine the competitive output and price

Which of the following is a common practice of single-price monopolists? * two-part tariffs advance purchase restrictions volume discounts differentiating customers based on their price elasticity of demand operating where marginal revenue equals marginal cost

Suppose a monopolist's total cost function is given by c = 0.004q +30q + 2000, and the revenue function is r = q(1200 - 6q), where c is measured in dollars and q is measured in tonnes per week. a. Determine marginal cost when g = 50. b. Express profit (n) as a function of q. Determine the profit-maximising level of output and the corresponding maximum profit. Justify your answers. C.

A perfectly competitive firm is expected to make a $0 economic profit in the long-run. What type(s) of profit would you expect a monopolist to earn in the long-run? Why the difference? Use the editor to format your answer

Consider a monopolist with a total cost function given as C(Q) = 1.5Q2 + 40Q that faces an inverse market demand function P(Q) = 280 − 0.5Q **Calculate the​ profit-maximizing quantity,​ price, and economic profits for this monopolist, with the government imposing a ​$20 per unit tax.  Quantity: ?    (Round your answer to two decimal​ places). Price: ?          ​(Round your answer to two decimal​ places).   Economic​ profits: ​$ ?   ​(Round your answer to two decimal​ places).