Hi Hlo expert bro Hand written solution is not allowed. Question 10Questions 10 & 11A firm has a monopoly on the market for temporary medical prostheses. It has twoproduction locations. Plant 1 has MC₁ = 4Q1, and Plant 2 has MC2 = Q2. Themonopolist wants to produce 1000 units of output in the upcoming year.The monopolist will use both plants to produce. How will it distribute productionacross plants? What share of the total will it produce at location 1?0.330.250.500.20Question 11How much in total will the firm produce at Plant 1?Question 12Consider the example markets given below. In each case, assess whether amonopoly is welfare-improving compared to a competitive market arrangement.⚫ Local electricity provision•Welfare-enhancing with a monopoly? Yes or No:Computer operating systems• Welfare-enhancing with a monopoly?Licensing board for physiciansYes or No•Welfare-enhancing with a monopoly? Yes or NoDrug research and production•Welfare-enhancing with a monopoly? Yes or NoConsumer market for gem stones• Welfare-enhancing with a monopoly? [Select]

Step 1: answer of 10To determine the optimal distribution of production across the two plants, we…

Answered: Question 10 Questions 10 & 11 A firm…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Price Quant ity Total Cost 2.000 1.600 1,800 2. 1,800 1,600 2000 For the Monopolist find the TR when the 3rd output is produced. Selected Answer: 2.000 Question 5 Total Cost 1.600 1.800 2.000 Price Quantity 2.000 1,800 1,600 What would be the profit for the monopolist if he choose to produce 2 units of the good? Selected Answer: 1,600 Question 9 If TR= 2+3Q^2, then MR is:
3. Consider a monopolist who faces the following demand: Demand: P= 100 – 10Q MC= 50+20 a) Find the price quantity combination that maximizes profit for the monopolist. b) Is the firm making positive, negative or zero profits? (100,100) Kareem chooses (60, 105) (500, 400) Saleem chooses Kareem chooses (50,420) 4. Calculate the SPNE/SPNES for the game stated above.
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,…
Exercise A.3 Compare the competitive equilibrium with that of the first-degree price discriminating monopolist. Indicate the similarities and differences that exist in prices, quantities produced, consumer surplus and loss of efficiency between both situations. Represent graphically assuming that the marginal cost is constant
Refer to the graph shown of a profit-maximizing monopolist: $100 $90 MC $80 $70 $60 $50 Price, cost, revenue D 7000 14000 21000 12000 Question: What is the monopolist's economic profit(loss) at the profit-maximizing level of output? O-$280,000 O $0 $140,000 $840,000 O -$140,000 0 /AC MR
I WILL LEAVE THUMBS UP! pls answer ASAP I ONLY HAVE 25 MIN A monopoly has two production plants with cost functions C1 and C2 and x denotes multiplication. C1 equals to 50 plus 0.1x Q1 x Q1 and C2 equals to 30 plus 0.05 x Q2s, where Q2s equals to the square of Q2. The demand it faces is Q. Q equals to 500 minus 10 x P. What is the profit maximizing level of output? Select one: a. Q1 equals to 125; Q2 equals to 62.5. b. None c. Q1 equals to 62.5; Q2 equals to 125. d. Q1 equals to Q2 equals to 62.5. e. Qlequals to Q2 equals to 125
Give typing answer with explanation and conclusion A monopolist has a demand curve given by P = 88 − Q and a total cost curve given by TC = 34 + Q2. The associated marginal cost curve is MC = 2Q. Suppose the monopolist also has access to a foreign market in which he can sell whatever quantity he chooses at a constant price of 60. How much will he sell in the foreign market? What will his new quantity and price be in the original market?
Question 4 OCP is the monopoly seller of Soma with a constant marginal cost of production of $1 a unit. There are 100 potential consumers of Soma who belong to one of two types, heavy and light. There are an equal number of each type. The inverse demand curve of heavy users is pH(q) = 9.4 – 2q while that of light users is pL(q) = 3– q. We also assume there is no trade between different types of buyers. 1. If OCP could perfectly discriminate between the two types of buyers what two-part tariff should they charge each type to maximize profit? 2. Suppose the Government were to ban such price discrimination and required OCP to set a single two-part tariff. What would the profit-maximizing two-part tariff be? OCP cannot forbid any buyer from purchasing at the announced tariff.
28 $55 $50 $45 MC АТС I of $40 $35 $30 $25 $20 Demand = P $15 $10 $5 $0 MR 40 80 120 160 200 240 Output (Q) The diagram above shows the Demand, MR, and cost curves for a monopolist in the short-run. At the profit maximizing Output (Q) level, the monopolist will earn a Total Profit of: Sel one: а. $1,200 b. $2,200 c. $800 d. $2,000 $$
T/F There are alot of firms (seller) in a monopoly market. Justify in detail.
Graph shows the cost and revenue information for Shitotsu the monopolist. What are the levels of price, output, total (sales) revenue. and total profits if the monopolist were to produce at the positions (a) through (d) indicated in table below? Costs and revenues 30 27 24 21 18 15 9 6 3 0 3 6 9 12 15 Quantity per period 18 21 MR D=AR MC AC
Market Power and Monopoly - End of Chapter Problem Green Machine is the only greenhouse in isolated Point Barrow, Alaska, and therefore has a monopoly on the sale of fresh flowers. The manager estimates that the elasticity of demand for flowers is -0.5. Green Machine cannot be maximizing profits because O it is operating in the inelastic portion of its demand curve, so it can increase price and still gain more revenue while lowering cost. This will increase profits. according to the Lerner index an elasticity of demand of -0.5 means Green Machine's markup is 50% higher than what it should be, so it needs to decrease price and increase sales. elasticity of demand is negative; therefore, Green Machine's total costs are higher than its total revenue, and profits are not being maximized. O its marginal revenue must be greater than its marginal cost when elasticity of demand is between 0 and -1, so profits are not being maximized and it must expand production to increase sales and lower…

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