ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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The data below relate to a monopolist and the product it produces. If the firm wants to produce where marginal revenue equals marginal cost, what output and
Quantity | Price per Unit | Total Cost |
---|---|---|
0 | $45 | $20 |
1 | $43 | $35 |
2 | $40 | $40 |
3 | $35 | $45 |
4 | $30 | $52 |
5 | $25 | $55 |
6 | $20 | $59 |
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- The following table (see MS Word/PDF version of Take-Home Quiz #5 handout, page 1) shows a market demand a monopolist is facing. Use the table to answer questions #4 thru #6. Average Marginal Marginal Rev. Total Economic Quantity Price Total Rev. Rev. Cost Cost Profit (Q) (P) (TR) (AR) (MR) (MC) (TC) (II) === =====%3D ====== =====3= 1 35 35 11 11 24 64 32 29 11 22 42 3 29 11 4 17 11 23 11 11 6. 120 11 7 17 -1 11 -7 11 9 99 11 -13 11 10 80 8. 11 [Extra Credit 2 pts] Fill all blanks in the Table 1 on the Quiz #5 handout. You will receive extra credit if you submit the completed table via email. Q4. If the monopolist sells 8 units of its product, how much total revenue (TR) will it receive from the sale? 40 O 87 O 104 O 112 O 164arrow_forwardUse the graph to answer the following 5 questions. A single priced unregulated monopolist faces the demand curve and has the cost curves illustrated in the diagram below. 1. What is the profit Price maximizing quantity of output? 70 a) 25 units. b) 40 units. c) 50 units. d) 60 units. 60 e) 70 units. f) 80 units g) 90 units Marginal Cost 50 2. What price does this monopolist charge? a) $58 b) $20 40 Average Total Cost c) $35 d) $30 e) $45. f) $50 30 g) $40 h) $38 3. What are the total profits? a) $1200 b) $0 c) $1250 d) $200 e) $250. f) $2250. g) $150 h) $1600 20 10 Demand 20 40 60 80 100 120 140 160 Quantityarrow_forwardFind the economic profit of a monopolist using the following information: Demand: p = 130—3Q Total cost: TC = 100 + 30Qarrow_forward
- Question 33 Suppose a monopolist faces the demand curve P = 200 – 2Q, has marginal cost curve MC = 2Q, and zero fixed costs. If the monopolist can perfectly price discriminate, which of the following is true? The monopolist sells 33 units at a profit of 3300. The monopolist sells 33 units at a profit of 1650. The monopolist sells 50 units at a profit of 5000. The monopolist sells 50 units at a profit of 2500.arrow_forwardThe demand curve for a monopolist is inelastic. Why?arrow_forwardQUESTION 1 A. The total cost function for a monopolist is given by TC = 44,000 + 180Q + 0.03Q² and the demand function is P = 420 – 0.06Q per unit of output. i. What is the profit maximising level of output? ii. Calculate the profit maximizing price. iii. Calculate total profit at the profit maximising level of output.arrow_forward
- Table 15-6 A monopolist faces the following demand curve: Quantity Price 1 $15 2 $12 3 $9 4 $6 5 $3 30. Refer to Table 15-6. What is the marginal revenue from the sale of the 3rd unit? -$3 $3 $9 $24arrow_forwardRefer to the figure above. The profit-maximizing price for the monopolist is: $7 $8 $6 $5arrow_forwardHelp me pleasearrow_forward
- 44 Output Total Total Total Marginal Marginal (Q) Price Revenue Cost Profit Revenue Cost E of 20 $25.00 $500 $650 $15 $5 40 $20.00 $800 $750 $5 60 $15.00 $900 $950 $15 80 $10.00 $800 $1,250 The table above shows revenue and cost information at four different Output (Q) levels for a Monopolist. Of the four available choices, Total Profit will be the greatest at Q = Select one: а. 80 b. 40 C. 60 d. 20arrow_forwardNumbers and Graphs: Chapter 10 100 90 90 PRICE (Dollars) 80 80 70 60 + 50 40 30 20 20 10 10 0 0 20 20 Demand 40 40 60 80 100 120 140 160 180 200 QUANTITY (Units) Revenue Lost Revenue Gained This monopolist's marginal revenue equals $ (Hint: Enter the negative sign, if necessary.)arrow_forwardhe following table shows a monopolist’s demand curve and cost information for the production of its good. What quantity will it produce and sell to maximize profits? Quantity Price per Unit Total Cost 10 $14 $20 20 $12 $60 30 $10 $120 40 $8 $200 50 $6 $300 60 $2 $420arrow_forward
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