Scenario 1: Barbara is a producer in a monopoly industry. Her demand curve, total revenue curve, marginal revenue curve, and total cost curve are given as follows: Q=160-4P TR=40Q-0.25Q² MR:40-05 TC=4Q MC=4 Refer to Scenario 1. How much output will Barbara produce? A. 0 OB. 22 C. 56 D. 72 OE. None of the above.
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- The graph shows the demand and cost conditions facing a perfectly competitive industry. If the industry is taken over by a monopoly, what is the deadweight loss that results from the behavior of the monopoly? The deadweight loss that results from the behavior of the monopoly is $ per year. >>> Remember that the quantity given on the x-axis is in thousands of pizzas. (...) 36- 32- 28- 24-23 20- 16- 12- 8- 4- 0- Price and cost (dollars per pizza) 0 12 8 15 MR 8 4 12 16 20 24 Quantity (thousands of pizzas per year) --+ 26 MC D L 28 Q1. CLARA is a producer in a monopoly industry. Her demand curve, total revenue curve, marginal revenue curve, total cost curve and marginal cost curve are given as follows: P = 40 – Q [or, Q = 40 – P], TR = 40Q – Q2, MR = 40 – 20, TC = 20 + Q2, MC = 20 a) Find the profit-maximizing level of output for CLARA. b) Find level of profit. c) Can CLARA earn a positive long-run economic profit? Why? Why not?Scenario 1: Barbara is a producer in a monopoly industry. Her demand curve, total revenue curve, marginal revenue curve, and total cost curve are given as follows: Q = 160 - 4P TR = 40Q- 0.25Q? MR = 40 - 0.5Q TC = 4Q MC = 4 Refer to Scenario 1. The price of her product will be O A. $32. O B. $4. O C. $72. O D. $22. E. $42.
- Mustapha maintains a monopoly in the holographic TV market because of its patent, but it is about to expire. The market demand and Mustapha's production cost are given by: P = 100 -0.50 and TC = 100+ 0.5Q² The market price is decimal place). The market quantity is or decimal place). The monopoly profit is sign, comma or decimal place). (please put your answer in numerical values without any dollar sign, comma or (please put your answer in numerical values without any comma (please put your answer in numerical values without any dollarQuestion 2 Alice is the monopoly producer for DrinkMeTM, a magical potion that makes you shrink in size. Market demand for this potion is given by p = 60 - 3Q and Alice's costs of production are C(q) = 12g. Please calculate the following quantities. %3D %3D a) Monopoly price, quantity and profits b) The fair market price in perfect competition c) The welfare loss which occurs due to the monopoly5. Denton Cheese Company (DCC) makes a unique variety of cheese they call Eagle Cheese. They sell it as a monopoly, but a government agricultural support program will pay DCC $7.50 per pound for as much cheese as DCC wants to sell to the government. The market demand for Eagle Cheese is the following: P = 12-.003Q The cost of making the cheese is as follows: C = 2Q+.002Q² If the goal is profit maximization, how much cheese should DCC sell to the market and what price should they charge? Also, how much should they sell to the government?
- Price and cost (cents per newspaper) Tiny is a small, isolated community served by one newspaper that can meet the market demand at a lower cost than two or more newspapers could. The Tiny Intelligencer is the only source of news. MC 120- The graph shows the marginal cost of printing the Tiny Intelligencer and the market demand for it. The Tiny Intelligencer is a profit-maximizing, single-price monopoly. 100– What is the efficient number of copies of the newspaper and what is the price at which the efficient number of copies could be sold? 80- The efficient number of copies of the Tiny Intelligencer is and the price at which this number could be sold is cents a copy. 60- 40- 20- 0- 100 200 300 400 500 600 Quantity (newspapers per day) of1. Suppose a firm operates as a monopoly in the domestic (home) market for a product. The demand for itsproduct is given by the inverse demand function: P = 120 −QD. The company’s costs are: T C = 20Q+ 200and MC = $20.A) Find the firm’s profit-maximizing output and price as a monopoly.B) Find the firm’s total profit in the monopoly market.2. Suppose the home country open up to free trade and a foreign competitor enters the market. Assume thatthe foreign firm has the same cost structure as the home firm (the monopoly from the previous question).A) Derive the best response function for each firm (h-home and f-foreign)B) Find each firms’ output, the home market price, and each firms’ profit from the home market3. Now, suppose that in addition to the home country opening up to free trade, the foreign country has alsoopened up to free trade. As a result, both firms sell their product in both markets.A) Find each firms’ overall output, market price in each market, and each firms’ overall…What happens if a perfectly competitive industry becomes a monopoly? Suppose the demand curve in the figure is market demand and the corresponding market supply curve represents the marginal cost of production. Compared to perfect competition, a profit-maximizing monopoly would decrease output by 2 units. (Enter your response as an integer) In addition, a monopoly would lower price by $12 Price and cost per unit 20- 18- 10- 14- 12- 10- 8- 8- 4- 2 SMC D G MR 2 ° 10 12 14 10 18 20 Quantity
- Global Gas & Electric, a monopoly operating in the northwest Philippines, is represented in the table below. Global’s executives would not provide you any more information than what's in this table, so you'll have to fill in the blanks. Fill in the table and use it to answer the following question. (The output is measured in thousands of kilowatt hours of electricity.) Assume that if electricity is supplied by competitive firms, the market price is 55 andthe quantity supplied is 8 (‘000 KWHs)? What is the amount of the deadweight lossto society of producing electricity by monopolist Global Gas and Electric? (It is helpful to have a graphical illustration based on the data above so you couldcalculate easily the DWL. )1. Asssume the following equations describe the conditions for an unregulated monopoly: Qd = q = 25,000 -100P or P = 250-0.01q TC = 480,000 + 70q + 0.005q2 where Qd is the quantity demanded for the firm, P is the commodity's price in dollars, TC is total cost in dollars, and q is the quantity of output produced. Based upon the above equations, answer the following questions: a. What is the firm's profit maximizing quantity of output? b. What price will the firm charge for the commodity c. What does the firm's total economic profit equal? d. What is the amount of deadweight loss that exists given the monopoly is unregulated? Assume the government is now going to regulate this monopoly, and the regulators want to guarentee the monopolist produces the socially optimal quantity of output. e. What is the socially optimal quantity of output? f. What price would regulators establish to guarantee the monopolist produces the socially optimal quantity of output? g. What does the firm's…Q.5 Deprive monopoly demand for an input when several inputs are used in the production process. (Explain Minimum 2000 words... Only 15 percent plagiarism allowed.)