Review the graph at right. Monopoly What is the unregulated monopoly price? $ (enter your response as a whole number) 100- 90 MC What is the unregulated monopoly output? (enter your response as a whole 80- number) 70- P=$60 60 The total unregulated welfare (CS + PS) is $ (round your answer to the nearest penny) 50- 40- What is the optimal monopoly regulated price? $] (enter your response as a MC $30 30- whole number) 20- The total regulated welfare (CS + PS) is $. (round your answer to the nearest penny) 10- D 04 10 20 30 40 50 60 70 80 90 100 Quantity Price

Review the graph at right. Monopoly What is the unregulated monopoly price? $ (enter your response as a whole number) 100- 90 MC What is the unregulated monopoly output? (enter your response as a whole 80- number) 70- P=$60 60 The total unregulated welfare (CS + PS) is $ (round your answer to the nearest penny) 50- 40- What is the optimal monopoly regulated price? $] (enter your response as a MC $30 30- whole number) 20- The total regulated welfare (CS + PS) is $. (round your answer to the nearest penny) 10- D 04 10 20 30 40 50 60 70 80 90 100 Quantity Price

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Review the graph at right for a monopoly market (enter all of your responses as whole numbers). Price 100- How much is the consumer surplus? S 90- MC How much is the producer surplus? s 80- 70- How much is the deadweight loss? S 60 80- Monopoly total surplus is $ 50- Monopoly total surplus is V competitive total surplus. 40- 30- 20- 10- MR D 10 30 40 50 60 70 90 100 Quantity
Is a monopoly always bad for society? Question 6 options: None of the other answers is correct Yes. Monopoly is always bad Monopoly is not bad if its owner gives back to society in charity No. For example, patents on medications create monopolies, and increase the price and reduce the quantity sold, but without them, no one would take the high costs of developing new drugs and the quantity will be... zero!
Discuss: What is the role of the monopoly? What is market classification and the cross elasticity of the demand?
6. The following graph shows the demand, marginal revenue, and marginal cost curves for a single-price monopolist that produces a drug that helps relieve arthritis pain.
"Market power is the ability of sellers or buyers to affect the price of a good". Briefly discuss how monopoly power can be measured and factors that determine the amount of monopoly power an individual firm is likely to have? b. Consider the following demand and cost functions for a monopoly broadband television firm: P = 16 - 0.0006Q and TC = 100 000 + 0.0004Q2 where Q= the number of subscribers and P= the price of monthly service. What price and quantity would be expected if the firm is allowed to operate freely?
Question 2 – Monopoly Draw the diagram for a monopoly that is making profits. In your diagram from part 1 indicate the area that represents the deadweight loss.
Pete has developed a new virtual reality headset that is so far advanced he effectively has a monopoly. His marginal cost is a constant $200, and his inverse demand is P = 800 – 4Q. What is the deadweight loss in this monopoly? a.) $0 b.) $45,000 c.) $11,250 d.) $22,500 Give typing answer with explanation and conclusion
Show that a monopoly will not necessarily lower its price by the same percentage as its constant marginal cost drops: 1.) Use the point drawing tool to indicate the initial equilibrium price and quantity. Label this point 'E'. 2.) Use the line drawing tool to show a 50 percent decrease in marginal cost. Label this line 'MC₁'. 3.) Use the point drawing tool to indicate the new equilibrium price and quantity. Label this point 'E,'. Carefully follow the instructions above, and only draw the required objects. What is the percentage change in the price given a 50 percent decrease in marginal cost? The price decreased by percent. (round your answer to two decimal places) 50- 45- 40 35- 30- 25- 20-1 15- 10- 5 Price, P 10 20 30 -MC MR D 40 50 60 70 80 90 100 Quantity, Q
Question 5 The following figure describes the market demand curve of a monopoly market: 10 Price, cost 9 8 7 6 3 2 1 a. b. C. d. 5 10 15 20 25 30 35 D a). 45 50 55 60 65 70 75 80 85 quantity Draw the marginal revenue (MR) curve for the monopoly given the above market demand curve. If the monopoly firm can produce any output level with the extra cost $3 per unit, how would the marginal cost (MC) curve be? List the mathematical equation and draw the MC curve on the same figure of question The fixed cost for the monopoly company is $25. Find the optimal output level and the related profit/loss for it. There are two proposals concerning the market efficiency: Plan A: regulate the market price at $4. Plan B: allow and help the monopoly enforce the perfect price discrimination. If you represent consumers to vote for one plan, which one would you choose? Explain with proper calculation (Hint: consumers only care about their welfare).
8 A monopoly has the following demand and Total Cost curve: Demand: P=1000-10Q TC=100Q+5Q2 1. How much profits does the monopoly make at the profit-maximizing level of quantity? $ 2. What is the DWL from the monopoly? $
Blue INK is the only cabel service provider in Gazipur. The diagram below depicts the price, output and costs incurred by Blue INK. Use the graph to answer the following questions: [1/8, 3:26 PM] Mahin: 1. What is the Total revenue generated by Blue INK at the profit maximizing level of output? 2. If the market turns into a Monopoly market again, what will be the total deadweight loss created?
The Puerto Rico Electric Power Authority (PREPA) is a natural monopoly. The graph shows the market demand curve and the firm's marginal cost curve. The monopoly is unregulated and maximizes profit. Draw the firm's marginal revenue curve. Label it MR. Draw a point at the profit-maximizing price and quantity. Label it 1. The monopoly makes a positive economic profit. Draw the firm's average total cost curve. Label it ATC. Draw a point on the ATC curve at the quantity produced. Label it 2. Draw shapes that show 1) the monopoly's economic profit. Label it EP. 2) the consumer surplus. Label it CS. 3) the deadweight loss. Label it DWL. 100- 90- 80- 70- 60- 50- 40- 30- 20- 10- Price and cost (cents per kWh) MC D 40 44 8 12 16 20 24 28 32 36 Quantity (millions of kWh per month) >>> Draw only the objects specified in the question. + G