Suppose that single-price, single-product and single-plant monopolist faces the following demand curve: Q $5,000 and its average variable cost is 0.01Q. Find the profit of the monopolist. = 5000 25P. The monopolist's fixed cost of production is O $190,000 O $195,000 $182,500 $200,000

Suppose that single-price, single-product and single-plant monopolist faces the following demand curve: Q $5,000 and its average variable cost is 0.01Q. Find the profit of the monopolist. = 5000 25P. The monopolist's fixed cost of production is O $190,000 O $195,000 $182,500 $200,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Suppose a monopolist producing Q units of output faces the demand curve P = 20 - Q. Its total cost…

A: A market form in which a firm has exclusive control over the production, distribution, or sale of a…

Q: 3. Suppose a monopolist faces a demand curve of D: P = 50 – 5Q. There are no fixed costs, but there…

A: A monopolist refers to a sole seller of a unique product. The optimal quantity for a monopolist lies…

Q: Which statement is correct? A monopolist will produce less than the efficient level of output. O A…

A: Assuming a monopolist has a straight interest bend, it has a direct minimal income bend. A benefit…

Q: The four statements below describe different characteristics of a monopolist, but one statement is…

A: In a monopoly, there is a single seller and the god produced is unique so the firm has full control…

Q: Serena is profit-maximizing monopolist selling of her own patented perfume, whose demand and…

A: In economics, a monopoly is a market structure characterized by the presence of a single seller (or…

Q: All 20 consumers are alike and each has a demand curve for a monopolist's product of p=15 -3q. The…

A: Incase of a monopoly market structure, There exists a single seller. The monopolist maximizes it's…

Q: Based on the diagram below, which of the following statements is true about the fixed costs of the…

A: In monopoly , the equilibrium is set at MR = MC Q = 50 at MR = MC p = A at MR = MC Average total…

Q: A monopolist can produce at a constant marginal cost of c = 5 (that is cost of producing q units is…

A: In a monopoly market structure, There exists a single seller. There exists high barriers to entry…

Q: 4. For a monopolist with marginal cost of c, where c> 0, facing a market demand of X(p) = a – bp,…

A: Block rate tariff In this type of tariff different blocks are given according to the energy…

Q: Refer to the graph shown. Assuming that this monopolist maximizes profit, the marginal cost of its…

A: The monopolist is only single seller in the market. The profit is maximized where the MR=MC.

Q: A monopolist is chooses their price (and the associated quantity implied by their demand curve) such…

A: The measure that depicts the change in quantity demanded with respect to its price level is known as…

Q: Suppose that a pure monopolist can sell 5 units of output at $4 per unit and 6 units at $3.90 per…

A: A pure monopolist is one who is a single seller of its product. There are no substitutes for its…

Q: The marginal revenue curve for a monopolist O will always have one-half the slope of the demand…

A: Monopolist is the single firm in the market. The industry and firm demand curves are same in the…

Q: If a monopolist attempts to raise its price by a small amount, the quantity that its customers will…

A: A monopolist is the single firm in the market selling the good with no close substitutes. It has the…

Q: Consider a monopolist firm facing a market demand curve given by Q = 1000 – 10P, %3D and…

A: as we know that profit is maximize where MR = Mc and we find the TC and find the price as follow-

Q: In this diagram, when this monopolist chooses the price and quantity which maximizes profit: 17.10-…

A: A monopoly is a market structure in which there is only one seller in the market. As there is a…

Q: The graph shows the cost and revenue curves for a profit-maximizing mm. Which of the following is…

A: Business economics requires making decisions and allocating resources in complex market scenarios.…

Q: 30 Figure 3. PA 22 23 20 15. 12- 10- 30 MC ATC MR Q 0 q 12 15 ⑧In order to maximize profits, the…

A: Detailed Explanation: The profit maximization condition for a monopolist is achieved when:Marginal…

Q: A firm is a natural monopoly. Its marginal cost curve is flat, and its average cost curve is…

A: A monopoly is a market structure in economics characterized by the dominance or exclusive control of…

Q: Suppose that single-price, single-product and single-plant monopolist faces the following demand…

A: In a monopoly market structure, There exists a single seller. There exists high barriers to entry…

Q: Which of the following is a characteristic of a monopolist firm but not of a perfectly competitive…

A: Monopoly is a market structure where one company dominates, controlling the supply of a product or…

Q: In general, a monopolist is likely to: earn lower profits than a perfectly competitive firm. earn…

A: Perfectly competitive market: - it is a market condition where there are many buyers and many…

Q: Let the production function be given by q=2(square root of L)(square root of K)} and Price of K be 5…

A: An isocost line depicts various combinations of inputs/factors of production that can be used with…

Q: 01

A: We know that The monopolist determines the profit-maximizing output at the point where the marginal…

Q: Profit maximization and loss minimization BYOB is a monopolist in beer production and distribution…

A: BYOB is a monopolist in beer production. Let BYOB cannot discriminate price and sell beer to all…

Q: A monopolist's costs are given by: C(Q) = 4Q² + 10Q + 100 and it faces the demand function: P= 50 -…

A: A.Cost=4Q^2+10Q+100 Demand:P=50-Q Total Revenue=PQ TR=50Q-Q^2 Marginal Revenue=Change in Total…

Q: Suppose the table below describes the relationship between price and quantity demanded for a…

A: GIVEN: or marginal costPROBLEM:Find the cost per unit that will help maximize profits.

Q: A monopolist faces the demand curve illustrated below. 12 11 9. 10 11 12 13 11 15 16 17 18 19 20 21…

Q: In Figure#2, the profit-maximizing condition of a monopolist is to produce following units of output…

A: The monopoly market only has one seller with a unique product. As being the sole seller, there is no…

Q: 12) Suppose that a monopolist supplies a product in two distinct markets, LA and NY. The demand…

A: Perfect competition is a theoretical market structure in which there are so many firms selling…

Q: Suppose the monopolist has the folloving demand function: Q= 12-0.5P The marginal cost is equal to…

A: Hi! thanks for the question but as per the guidelines we can answer up to three subparts at one…

Q: The graph below depicts the demand curve facing a monopolist. The monopoly has constant marginal…

A: The marginal revenue curve will be below the demand curve and downward sloping. It reflects the…

Q: Let the inverse demand curve in a market be given by P(Q) = 259-20*Q. We consider a monopolist…

A: The monopolist firm gets the benefit to serve the whole consumer demand on its own. This allows it…

Q: Because a monopolist has market power, which of the following is NOT a characteristic of a…

A: Monopoly refers to a market structure where there is only one firm selling a unique product and…

Q: Suppose that for a monopolist, MR=MC=$10 and P=$15 at the profit-maximizing level of output. At this…

A: Profits are the monetary value that a firm earns above the total cost.

Q: A monopolist has constant marginal cost equal to 30 and faces a market demand curve given by the…

A: Perfect price discrimination:- Whenever a company asks the utmost possible price per unit purchased,…

Q: Exhibit 10-4 $/0 MC ATC 24 wwww.imn. The non-discriminating monopolist in Exhibit 10-4 should: O…

A: A non-discriminating monopolist is one that offers single price to each consumer as he does not…

Q: Consider a monopoly firm with constant marginal costs and ask what happens to the price charged when…

A: A government charge being levied upon an organization or individual for collection of revenue for…

Q: A single-price monopolist is currently producing at an output level where marginal revenue is $14,…

A: The marginal revenue is stated to be $14The marginal cost is $16The average variable cost is $13 The…

Q: The quantity sold by a monopolist using first degree price discrimination is higher than the…

A: Financial analysts have distinguished three conditions that should be met for value segregation to…

Question

Suppose that single-price, single-product and single-plant monopolist faces the
following demand curve: Q
$5,000 and its average variable cost is 0.01Q. Find the profit of the monopolist.
5000
25P. The monopolist's fixed cost of production is
O $190,000
O$195,000
$182,500
$200,000

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Assume that a pure monopolist and a purely competitive firm have the same unit costs. Contrast the two with respect to (a) price, (b) output, (c) profifits, (d) allocation of resources, and ( e) impact on the distribution of income. Since both monopolists and competitive fifirms follow the MC = MR rule in maximizing profifi ts, how do you account for the different results? Why might the costs of a purely competitive firm and those of a monopolist be different? What are the implications of such a cost difference?
Consider the following table for a monopolist to answer the question. Quantity Price (P) Total Marginal Total cost (0) revenue revenue (TC) (TR) (MR) 0 1 2 3456 O 7 8 9 10 48 O 44 40 68 64 The profit-maximizing price for the monopolist is S O 36 60 56 52 48 44 40 36 32 28 40 72 92 100 108. 112 128 160 200 256 320 Marginal cost (MC)
QUESTION 11 Suppose that a pure monopolist can sell 5 units of output at $4 per unit and 6 units at $3.90 per unit. The monopolist will produce and sell the sixth unit if its marginal cost is: O A. S4 or less O B. S3.90 or less O C. $3.50 or less D. S3.40 or less
QUESTION 23 If the monopolist shown in the following figure could practice first-degree price discrimination, the producer surplus would be: Price (dollars) 50 40 30 20 10 $0. $225. $450. $900. O $1,200. 30 50 60 MR 100 MC Quantity
If a monopolist faces an inverse demand curve, p(y) = 100-2y and has constant marginal costs of $32 and zero fixed costs and if this monopolist is able to practice perfect price discrimination, its total profits will be O a. $1,156. O b. $17. O c. $578. O d. $1,734. O e. $289.
The monopolist has constant marginal and average cost AC-MC=70 and faces the market demand P120-Q. Suppose the monopolist can perfectly price discriminate by setting a two-part tariff: that is, the monopolist charges the consumer a fixed fee Fand a per unit price p. What are the optimal values of Fand p that the monopolist sets? O F-$2500, p-$70 O F-$3500, p-$70 O F-$2375, p-$95 O F-$1250, p-$70 O F-$2975, p-$85
Suppose that single-price, single-product and single-plant monopolist faces the following demand curve: Q = 3000 – 20P. The monopolist's fixed cost of production is $5,000 and its average variable cost is 0.2Q. Find the profit of the monopolist. $12,000 $15,000 $21,960 O $17,500
When a monopolist spends money to make it harder for competitors to enter the industry, this is referred to as O deadweight loss. innovation protection. O x-inefficiency. rent seeking.
Consider a monopoly firm in the short run for which marginal revenue equals rising marginal cost at 150 units of output. At this output, the firm's total cost is $2000, total fixed cost is $800, marginal revenue is $3, and elasticity of demand is 2. Which of the following statements is correct about this firm? The firm should expand production beyond 150 units. O The firm is making a loss greater than total fixed cost and should shut down. The firm is making a profit and should continue to produce 150 units. The firm is making a loss smaller than total fixed cost and should continue to produce 150 units.
S 2
The diagram at right shows the demand curve, marginal revenue curve, and cost curves for a single-price monopolist that owns the only golf courses on Eagle Island. The monopolist's product is 18-hole golf games. a. Now suppose the monopolist is able to charge a different price on each different unit sold. What would be the total number of rounds of golf sold per week? rounds. (Round your response to the The total number of rounds sold per week is 600 nearest whole number) What would be the price on the last round sold? The price on the last round sold is $200 (Round your response to the nearest dollar) b. What is the value of the consumer surplus if the monopolist cannot price discriminate at all? The value of the consumer surplus is $ 40000 (Round your response to the nearest dollar) c. What is the value of the consumer surplus when the monopolist is practicing this "perfect price discrimination? The value of the consumer surplus is $ (Round your response to the nearest dollar) Price…
The graph below shows the cost curves for a monopolist. What is the monopolist's profit at the profit-maximizing level of production? Price 15 MC win 005 10 8 $18 O $64 O $42 O $39 6 8 MR ATC Quantity