Suppose a monopolist faces two groups of consumers. Group 1 has a demand given by P1=50−2Q1�1=50−2�1 and MR1=50−4Q1��1=50−4�1. Group 2 has a demand given by P2=40−Q2�2=40−�2 and MR2=40−2Q2��2=40−2�2. The monopolist faces a constant marginal cost equal to MC=10��=10.If the monopolist is allowed to engage in 3rd degree price discrimination, how many units of output will the monopolist sell? Question 12Answer a. 25 b. 10 c. 15 d. 20

Suppose a monopolist faces a market demand that is the first two columns in the table below. Also, in the short run, assume that Total Fixed Cost equals $100 and the monopolist has Total Variable Cost according to the table. Find Total Revenue for each price and quantity combination, and then Marginal Revenue as price falls and quantity increases. Fill in the rest of the costs in the table and find profit at each price and quantity combination as the difference between Total Revenue and Total Cost. If profit is less than zero that indicates a loss. What is the maximum profit you found in this table? At what quantity and price combination is profit maximized for this monopolist? Next, verify this result by using Marginal Analysis to find the profit maximizing price and quantity combination. For each quantity, ask yourself if Marginal Revenue exceeds Marginal Cost. If it does, then profits would be increased by producing that quantity. As you go down the table to higher quantities, stop…

If a monopolist faces a demand p(q) = 130-3q and costs c(q) = 2q^2, answer: a) What is the quantity this monopolist would sell? b) What is the price they would charge?

A monopolist produces a homogeneous good in two factories, each with its own distinct marginal cost (MC) function. The marginal costs for Factory 1 and Factory 2 are given by MC₁ 4*Q1 and MC2 = 2*Q2 +2 respectively, where 1 and 2 represent the quantity of goods produced by Factory 1 and Factory 2. The monopolist faces a market demand represented by Q 64 P,where is the total quantity demanded, and P is the price of the good. The profit-maximizing output levels for each factory of the monopolist are: = 194 25 OQ1 = 61 and Q2 = 33 194 and Q2 23 Q1 = OQ1 = = = = and Q2 OQ1 11 and Q2 = - = 308 25 308 23 21

A city in a developing country does not have a provider of water and sanitation services, leading to poor health outcomes for its citizens. A firm is considering entering thatmarket. The cost curve is C(g) = 10 + 2q, and the inverse demand is P(g) = 10-q. Thegovernment of that city knows that, because of the high fixed cost to operate in this market, any entrant is likely to become a monopolist. Thus, they decide to implement the following regulation: the firm is not allowed to choose a price above an upper limit of p (which the government chooses and sets in the law before the firm decides to enter).There will be no transfers between the government and the firm.Assume that the firm only enters the market if it can get profits of at least zero, given the government's choice of p. Suppose that the government's goal is to maximize consumer surplus. Which of the following statements is the most correct? The government needs to set p = 2, because it's the marginal cost. That eliminatesthe…

On the market of good Y there are 50 identical consumers. Each consumer has a demand function q=300-2pGood Y is produced by a monopolist, which is operating with a constant marginal cost of 50 and a fixed cost of 2000. Suppose the monopolist implements a two-part tariff pricing strategy. Calculate the maximum profit

Suppose that a monopolist sells its product in two countries; Japan and Canada. The monopolist’s marginal cost is $60 and total fixed cost is $100. The direct market demand equations in the two countries are as follows:QJ = 200 − 2PJ and QC = 100 − 0.5PC;where the subscript J denotes Japan and the subscript C denotes Canada. Suppose that the monopolist cannot prevent resale, i.e, the monopolist must charge a single price for both countries.a) Derive the direct total market demand equation, QD = f(P).b) What would be the profit-maximizing quantity (Q*), price (P*), and profit (π*)? Please answer both a) and b). Thank you.

A wholesaler (upstream firm) sells a product to a retailer (downstream firm). Both the wholesaler and the retailer are monopolists. The wholesaler faces a constant marginal cost of $2 and charges the retailer a wholesale price w. The retailer resells the product to final consumers at price P and the wholesale price w is its only cost. The demand for the good is P = 12 - Q. For your calculations below, assume that both the P and w are measured in dollars per unit. Hint: The retailer's profit function is π = (Pw)Q. a Find the profit-maximizing retail and wholesale prices and quantities.

A monopolist knows there are two customers with different demand curves for two differently sized bags of potato chips. Customer S would only buy the small bag and has a willingness-to-pay given by P=160-2q (where P denotes the price and q denotes the quantity). Customer L would buy the large bag and has a willingness-to-pay given by P=200-q. The monopolist does not know who is customer S and who is customer L. Marginal cost of production is zero. BEFORE second degree price discrimination, and if the monopolist perfectly price discriminated the small bag, what is the price of the small bag?

Suppose that a monopolist has a patent for widgets and the demand curve is given by Q(P) = 12 – 0.02P. The monopolist’s total costs are TC(Q) = 25Q^2 + 500. You may assume that widgets are continuously divisible, like corn oil or sand. a: Find the quantity Q* that maximizes the monopolist’s profit by exploiting the marginalcondition, necessary for profit maximization at an interior solution. Neatly show your work.b: Find the price P* that the monopolist charges. Neatly show your work.c: Neatly graph the marginal revenue and marginal cost curves, with Q on the horizontal axis.d: Label relevant areas on your graph using a, b, c, etc. and fill in the following chart.