Suppose that a monopolist calculates that at its present output level, marginal cost is $4.00 and marginal revenue is $4.00. The firm could increase profits by

The accompanying graph depicts the marginal revenue (MR), demand (D), and marginal cost (MC) curves for a monopoly a. Place point Pi at the profit maximizing price and quantitvy assuming that the monopolist can only charge a single price. 100 95 90 85 80 75 70 65 2 60 b. What are the profits of the firm if it charges a single price? 50 45 Suppose the monopolist able to successfully price discriminate between two groups by charging one group $60 and charging $35 to the other group. c. What are the firm's profits if it charges the two prices as mentioned above? 35 30 25 20 15 10 MR 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95100 Quantity

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A perfectly competitive firm is expected to make a $0 economic profit in the long-run. What type(s) of profit would you expect a monopolist to earn in the long-run? Why the difference? Use the editor to format your answer

Consider the following cost and demand information for a monopolist. Demand is Qm = 34 - 1*Qm,    Total Cost is TC = 20 + 2*Qm + .5*Qm2. At the profit-maximizing quantity, marginal revenue and marginal cost are equal to $........?

Suppose the inverse demand function for a monopolist's product is given by P=100-2Q and the cost function isC(Q)=10+2Q. What is the firm's profit-maximizing maximum profits?A. $1,115B. $1,109C. $1,190.5D. $2,100.5

The monopolist is productively-efficient, because, like the perfect competitor, it operates at minimum ATC is the long-run. True False

A monopolist serves a market with five potential buyers, each of whom would buy at most one piece of the monopolist's good. Anna would be willing to pay up to £80 for it, Bob up to £90, Chloe up to £100, Dave up to £110 and Elizabeth up to £120. The monopolist's variable cost function is given in below table. Quantity Variable Costs 1 3. 4. 40 90 150 220 300 Price Marg. Revenue a) Indicate in the table which price the monopolist would want to charge for each given quantity. b) Find the marginal revenue for each quantity. c) Find the monopolist's profit maximising price under the assumption that he wants to produce anything at all. d) How large can the monopolist's fixed costs be such that he still wants to start producing at 1. D Focus 9°C Sun

Find the economic profit of a monopolist using the following information: Demand: p = 130—3Q Total cost: TC = 100 + 30Q

In the figure provided, a monopolist faces a market demand represented by Q(P), where is the total quantity demanded, and P is the price of the good. The figure also displays Marginal Cost (MC), Average Total Cost (ATC), Average Variable Cost (AVC), and Marginal Revenue (MR) curves. Additionally, P* and Q* represent the short-run equilibrium price and quantity, respectively. Q DMR MC AT C Avc P(Q) Based on the graphical representation, which of the following statements is true? The monopolist realizes a profit in the short run. The monopolist faces a loss in the short run and decides to shut down. The monopolist incurs a loss in the short run but decides to continue operating.