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

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

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? $

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

2. A monopolist produces its output in two factories, whose cost curves are given by C1 (q1) = 10q and C2 (q2) demand for the firm's product is given by P = 700 – 5Q where Q is the total quantity sold by the monopolist. (a) On a diagram, illustrate the monopolist's decision about how much to produce at each factory and overall and the price to charge. Briefly explain your diagram. (b) Numerically calculate the monopolist's optimal choices for qı, q2, Q, and P. (c) Suppose that labor costs increase in Factory 1 but not in Factory 2. How should the firm change (i.e. raise, lower, or leave unchanged) each of the values you found in (b)? Your answer should be qualitative, not quantitative. 10q3 where q1 and q2 are the amounts produced at each factory. The diagram might be useful but is not necessary.

Mailings Review View Help Advanced Threat Protection and it hasn't detected any threats. If you need to edit this file, click enable editing. 2-) Hypothetical monopoly costs and revenue Quantity Price Total cost $500 $400 2 450 650 3 400 950 350 1,300 300 1,700 Table 1 In Table 1, using the profit-maximization rule, calculate MC, MR and write the profit- maximization quantity and the price:

Table: Prices and Demand Quantity of Hats Demanded 0 1 2345699 7 8 Price per Hat $30 XHHNARY 28 26 24 22 20 18 16 14 (Ref 27-8 Table: Prices and Demand) Use Table 27-8: Prices and Demand. The New Orleans Saints have a monopoly on Saints logo baseball hats. The Saints sell at most 1 hat to each customer, and the table shows each customer's willingness to pay. The marginal cost of producing a hat is $18, and there are no fixed costs. How much is the Saints' profit at the profit-maximizing output? O a. $18 O b. $24 O c. $12 O d. $30

You are the owner of a monopoly firm. The demand curve that you face is: 100 0. 5Q - Your Total Cost and Marginal Cost are: 1035 +10Q +0. 5Q2 10 +Q TC |3| MC The government decides to regulate your firm and imposes the Efficient Price. What is the price you must set? Regulated Efficient price $77.5 Regulated Efficient price = $55 Regulated Efficient price = $60 Regulated Efficient Price = $70