Price ($/unit)Suppose the accompanying figure shows the demand curve, marginal revenue curve, and marginal cost curve for a monopolist.AEMCMRF GHQuantity (units/day)The socially optimal level of output is units per day.Multiple ChoiceОFОG

The given graph is for the monopolist, which produces at the quantity where the marginal costs gets…

Answered: Price ($/unit) Suppose the accompanying…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose an airline sells air tickets to two types of customer – business travelersand vacation travelers. Their estimated demand elasticities are -2.5 and -4.0respectively.Suppose the marginal cost is constant at $240, and the services provided to thetwo types of customer are similar.a. Based on the given information, explain with TWO practical reasons whether theairline should charge a higher price on business travelers or vocational travelers.Explain without calculation.
Below is a graph of a monopolistically competitive market. The socially-optimum price and quantity in this market is: $ $150 $125 $110 $75 Market for Dental Cleanings $75 and 1200 cleanings $150 and 1200 cleanings $125 and 1500 cleanings O $110 and 1200 cleanings 1200 MR 1500 MC D ATC Quantity of Cleanings
The diagram belows shows the demand curve and marginal cost curve (shown in red) for a monopolist. What is the deadweight loss? Answer is an integer. P 50 25 Q
The socially optimal price (P = MC) is socially optimal because: a. It reduces the monopolist’s profit. b. It yields a normal profit. c. It minimizes ATC. d. It achieves allocative efficiency
Suppose that the demand curve for movies for college students is Q Q, = 80 - 1.00p 100- 90- and for other town residents is 80- Q2 = 20 -0.25p. 70- The town's total demand curve is 60- 50- E 40- 30- 20- 10- 04 100 60 80 Q. Movies 20 40 120 24 étv SEP 30 MacBook Air DD DII F11 F10 F9 FB 80 F7 F6 F5 F4 F3 esc F2 F1 & #3 3 @ $ 7 8. 9 6 4 1 2 Y Q W E K R P. Price per movie
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
T/F There are alot of firms (seller) in a monopoly market. Justify in detail.
Problem 3 uppose an airline has monopoly over a certain route. The estimated price elasticity of demand for business travelers is E-12, while the price elasticity of demand for leisure travelers is Ey-24. The airline wants to set the prices separately for business and vacation travelers. Economy Firat Class Only i the marginal cost of transporting each passenger is the same, und the airline is able to separate the two groups perfoctly, what is the optimal surcharge (in ) on business travelers? Oor example. fleiture travelers pay 100, and business ravelers pay 200, then the surcharge is 100%) Anvwer b) Suppose that in order to separste business travelen, the airline must offer them slightly better conditions on board (for enample, serve them a meal). As a resul, the marginal cost of flying a basiness traveler is 30% higher than for a leivare traveler. What is the optimal surcharge (in ) on business fravelers in this case? Awwer Now suppose the airline introdaces a Basi Economy fare,…
Assume inverse demand function for game console in an imaginary country is P=1200-4Q and the total cost function is TC=400+4Q². Government put $120 of specific tax on production. a. If the market is competitive what is the incidence of tax on consumer? b. If the market is monopolist what is the incidence of tax on consumer?
A college has two types fo students: students from middle-income families who have an estimated price elasticity of demand equal to -1 1/2 and students from lower-income families who have an estimated price elasticity of demand equal to -2 1/2. The colleges marginal cost for providing one-year's academic credit is $4,500 regardless of which student is receiving the education. a. What annual tuition (price) should the college establish for students from middle-income families? b. What annual tuition(price) should the college establish for students from lower-income families?
Do not give handwriting solutions maintain accurary and quality in answer takecare of plagrism
If both parts could be answered.

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Price ($/unit) Suppose the accompanying figure shows the demand curve, marginal revenue curve, and marginal cost curve for a monopolist. A E MC MR F G H Quantity (units/day) The socially optimal level of output is units per day. Multiple Choice О F О G