Suppose Inverse market demand is given as P = 110 – 20. Market%3Dsupply is given as Q = 10 + P. Also assume ATC =0.25*Q.How many units of the product would the perfectlycompetitive market supply? What would the equilibrium price be?a.What is the profit maximizing price and quantity if this marketis a monopoly? Calculate the profit of the monopoly.b.Calculate the deadweight loss created and consumer surpluswhen this market became a monopoly.C.

Answer: Given, Market demand: P= 110 - 2Q Market supply: Q = 10 + P or P = Q - 10 ATC = 0.25*Q (a).…

Suppose Inverse market demand is given as P = 110 - 2Q. Market supply is given as Q = 10 + P. Also assume ATC = %3D 0.25*Q. How many units of the product would the perfectly competitive market supply? What would the equilibrium price be? a. b. What is the profit maximizing price and quantity if this market is a monopoly? Calculate the profit of the monopoly. Calculate the deadweight loss created and consumer surplus when this market became a monopoly. C.

Suppose Inverse market demand is given as P = 110 - 2Q. Market supply is given as Q = 10 + P. Also assume ATC = %3D 0.25*Q. How many units of the product would the perfectly competitive market supply? What would the equilibrium price be? a. b. What is the profit maximizing price and quantity if this market is a monopoly? Calculate the profit of the monopoly. Calculate the deadweight loss created and consumer surplus when this market became a monopoly. C.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

A monopoly can sell 20 units of output for $18 per unit. Alternatively it can sell 21 units of output for $16 per unit. The marginal revenue of the 21st unit of output is...
Assume inverse demand function for game console in an imaginary country is P=1200-4Q and the total cost function is TC=400+4Q². Government put $120 of specific tax on production. a. If the market is competitive what is the incidence of tax on consumer? b. If the market is monopolist what is the incidence of tax on consumer?
Which of the following statements is true of a monopoly as compared to a perfectly competitive market with the same costs? * Consumer surplus is smaller. Profit is smaller. Deadweight loss is smaller. Total surplus is larger. O Quantity is larger.
#9
I need help with these homework t questions What price will the firm charge if it maximizes profit? How much Labor and Capital will the firm hire? What is the value of Consumer Surplus in this market?
Imagine you are the owner of the Omaha Surfboard Company. You have a branch in Omaha and in Long Beach CA. After some market research you find the following surfboard demand for each market, Omaha Demand: Qo = 1000 – 10P Long Beach Demand: QL = 1000 – 5P Combined/Total Demand: Q = 2000 – 15P Your marginal cost is constant at $40. a. Find your price and quantity if you treated the market as a single entity with a single price. What is your profit? (Hint: find Marginal Revenue and set equal to MC) b. If you treat each market separately, what is P and Quantity in each market, and final profit?
help with two questions attached
The Spacing Guild has a monopoly on space transport. They sell tickets(Q) for seats on starships for interstellar travel at a per-ticket price of P. Alltickets cost the same. The Marginal Cost for each seat is $16 and there are no other costs.Market demand is Q=306-5P. What is the difference between the Guild's PRICE and the price thatwould result if interstellar travel was a perfectly competitive market?
Suppose that the demand for good x is given by : P=100-8q Marginal cost of production is given by : P=10+2q MR is given by 100-16q What will the equilibrium quantity and price be in a competivite market? Calculate consumer, producer and total surplus. If we contrast this market to one in which good x is produced by a monopoly, what will be the quantity produced and the price each unit will be sold as? Calculate consumer, producer and total surplus. What will be the loss in total surplus due to a monopolist?
Identify the following statement's accuracy and briefly state why. All participant in perfect competition is price taker, while in monopoly, only the monopoly power is the price maker while every other participant is a price taker the similarity between perfect competition and monopoly is the absence of government intervention. Perfect competition is economically efficient as it produces an equilibrium point in which the price and quantity of goods is equal, thus maximising the total surplus. In monopoly, the market is inefficient as monopoly power maximises their revenue by setting their own price. This would create a scenario where consumer surplus will decrease and producer surplus will increases, as well as the presence of deadweight loss, which were the potential gain that is not realised by consumer or producer.
Consider the following market demand p= 20 - 0.02 Q where p is the price in $ or kilo and Q is the quantity demanded in kilo/ per week.The marginal cost of schedule is given by MC = 2 + 0.03 Q. a. if this were a perfectly competitive market what would be the equilibrium price and quantity show your work? b. if this were a monopolized market what would be the equilibrium price and quantity show your work? c. what is the dead weight loss in the monopolized market give the number and show your work?
What would consumer surplus be?