Suppose a discriminating monopolist is selling a product in four separate markets in which demand functions are: Q1 = 450 – P1; Q2 = 200 – 0.5 P2; Q3 = 150 – 0.25P3 and Q4 = 80 – 0.4P4  Cost function is TC = 95,000 – 100Q. a. As an economic adviser, determine the Prices to be charged in the three markets and amount of output to be sold in each market so that total profits can be maximized.   b.Calculate the total profit to be made from the strategy of price discrimination and clearly explain how this strategy has aided this monopolist.

A single firm produces widgets, with a cost function and inverse demand function as follows, C(q) = 150 + 2q P(Qd) = 10 − 0.08Qd (a) Calculate the monopolist’s profit-maximizing price, quantity, and profit if he can charge a single price in the market (single price monopolist). (b) Suppose the firm can sell units after your answer to (a) at a lower price (2nd-degree price discrimination, timed-release). What quantity will be sold for what price in this second-tier market? Calculate the monopolist’s profit. (c) Suppose each new tier of pricing the monopolist introduces increases fixed costs by $2 (quantities can be irrational). What is the profit-maximizing quantity, number of prices, monopolist’s profit, and deadweight loss? (d) Suppose the firm can perfectly price discriminate (1st-degree) with a 40% increase in marginal cost; calculate the profit-maximizing quantity, monopolist’s profit, and deadweight loss? (e) Between (c) and (d), which is socially preferred? Which would the…

A monopolist with cost function C(q) = ;q? faces 2 consumers with the following demands: p(q1) = 10 - q1 and p(q2) = 20 – 2q2. Determine prices, quantities to be produced and sold and the monopolist's profits in the following cases: (a) The good can be resold at zero cost among consumers and it is technologically impossible to sell it in bundles of more than 1 unit. b) There is resale at zero cost and bundling in packages of arbitrary size. c) Resale is possible at a cost of "t" per unit. d) The good is a personal and non-transferable service. e) Repeat the above analysis, but this time assuming that costs are C(q) = q with q < 8.

For a monopolist firm the demand and the total cost functions are given as Q = 20- 0.5P and TC= 4Q2-8Q+15, respectively. (8 marks) Find a) the optimum quantity and the optimum price level and  the profit/loss on these levels b) at what price should the monopolist shut down? c) Show the economic profit (loss) of the firm in a graphic representation

Question 4. Consider a monopolist facing a demand curve of the form D(p) = 100 – 2p where p is the - unit price. Suppose the monopolist has a constant marginal cost of production of $2 a unit. Bunter was asked to determine the price which would maximize consumer surplus. Here is his solution: Total surplus as a function of price is 50(100 – 2x)dx. The derivative of this with respect to p is -(100-2p). This is maximized by making p as large as possible, i.e., p = 50. Is Bunter correct? If not, what is the error that Bunter has made?

Consider a market with a demand curve P = 500 − 5Q which is being supplied by a monopolist. The cost of production of the monopolist is given by C(Q) = 5Q2 2 . P and Q are the price and quantity of the entire market. (a) Find the expression of total and marginal revenue, and marginal cost. Draw the demand, MR and MC curves in a clearly labelled diagram. (b) Find out how much output will be sold by the monopolist in equilibrium? What price she will charge? How much profit will be earned by her. (c) What would be the equilibrium price and quantity if the market were served by a perfectly competitive firms instead? (d) Find the consumer and producer surplus in competitive and monopoly markets? Find and explain the dead-weight loss due to monopoly operation.

A monopolist produces output with the following (inverse) demand function: P=120-Q where P is the market price and Q is the market demand of a number of firms. The marginal cost of each firm is constant and the same (water and labor resources come from the same source) of 60. From these market conditions, calculate the change in company profits and social gains due to a decrease in marginal costs so that they become 35 after innovation.

Consider the case of a monopolist who has the ability to perfectly price discriminate by charging each one of its customers a two-part tariff. Suppose for simplicity that there are only two consumers, Mary and Terry. Mary demand for the good is 2/3 of the aggregate demand. The aggregate demand is given by Q=550-3p, where Q denotes the total quantity demanded at price p. The firm's total cost of producing Q units is given by the function C(Q) = 5 Q + 100 Find the two-part tariff that the firm will charge Mary in order to maximize its profit. Then enter the fee of this two-part tariff below. (As usual, you must enter a number below, not a ratio, not an expression with symbols..., just a number.)

Consider the following demand functions and total cost function faced by a monopolist where Q is output, PL is the price based on low demand, and PH is the price based on high demand.               Q = 50 – 0.25PL                                Low Demand Function               Q = 200 – 0.50PH                             High Demand Function               TC = 2,500 + 50Q + 0.50Q2                     Total Cost Function Suppose that there is a 75% chance of low demand and a 25% chance of high demand. Determine the monopolist’s profit maximizing level of output. Determine the monopolist’s expected profit maximizing price.

A monopolist’s inverse demand function is estimated as P = 450 − 3Q. The company produces outputat two facilities; the marginal cost of producing at Facility 1 is M C1(Q1) = 2Q1, and the marginal costof producing at Facility 2 is M C2(Q2) = 6Q2.(a) Provide the equation for the monopolist’s marginal revenue function.(b) Determine the profit maximizing level of output for each facility.(c) Determine the profit maximizing price.