The data below relate to a monopolist and the product it produces. What is the profit-maximizing output and price for this monopolist? Quantity Price per Unit Total Cost 0 $22 $20 1 $20 $24 2 $18 $27 3 $15 $32 4 $14 $40 5 $12 $49 6 $10 $59     a.) Q=2 : P=$18   b.) Q=3 : P=$15   c.) Q=4 : P=$14   d.) Q=5 : P=$12

2. In the following table are demand and cost data for a pure monopolist. Complete the table by filling in the columns for total revenue, marginal revenue, and marginal cost. Answer these three questions: (a) What output will the monopolist produce? (b) What price will the monopolist charge? (c) What total profit will the monopolist receive at the profit-maximizing level of output? Quantity Price revenue 0 1 2 3 4 5 6 O 9 10 $34 $ 32 30 28 26 24 22 20 18 16 14 Total Marginal Total revenue cost มี $ 20 36 46 50 54 56 64 80 100 128 160 Marginal cost $

Please answer questions 4 through 7.

A2) Compute the point elasticity of demand.

14) The demand equation for a monopolist's product is p=200 -0.98q, where p is the price per unit (in dollars) of producing q units. If the total cost c (in dollars) of producing 8 units is given by c= 0.02q2 + 2q + 8000, find the level of production at which profit is maximized.

Figure: Price Discriminating Monopolist Market A P $20 16 14 6 Q₁ Q₂ $12 10 9 -AC = MC 6 Market B AC = MC MR MR Refer to the figure. In order to profit maximize, the monopolist should: Charge a price of $16 in Market A, and $10 in Market B. Charge a uniform price of $6 in both markets. Charge a price of $14 in Market A, and $9 in Market B. O Charge a price of $16 in Market A, and $6 in Market B.

4) A monopolist faces a market inverse demand function: P = 250 – 5Q and marginal cost function: ATC = MC = 10.  Answer the following. If the monopolist employs a single price strategy, what is the optimal quantity produced and price charged. What is the market up and contribution margin from the strategy in part a if Ed = -1.0833. If other firms trying to enter this market had slightly higher cost structures, what would be a good price & quantity mix to limit entry of competition and why (no math needed). If the monopolist could create a bundled good instead of the strategy in part a, what price would it charge and how many units would be sold in the bundle. What are the profits from part a & part d? Which pricing strategy is preferred. EC: Briefly explain why a firm that offers a buy 2 get the 3rd free deal, does not just offer that same product at a 33.33% discount of the normal stated price. Need help with number 2.

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…

The table below shows the marginal revenue and costs for a monopolist. Demand, Costs, and Revenues Price (dollars) Quantity Demanded $85 79 73 67 61 55 50 150 250 350 450 550 Marginal Revenue (dollars) $85 76 64 1. 250; -$3,625 2. 250; $3,625 3. 350; -$3,625 4. 350; $4625 52 40 28 Marginal Cost (dollars) $25 85 64 61 67 77 Average Total Cost (dol $139.00 103.30 87.50 80.00 77.00 77.00 The monopolist's profit-maximizing level of output is...................its and the monopolist's profit at the profit maximizing output is....

Question 2. A monopolist sells the same product at the same price into two different markets. The demand for the product in market #1 is denoted D₁ (p) = 30 - 2p where p is the unit price. The demand for the product in market #2 is given by D₂ (p) = 80 - 3p. (a) If the monopolist sets a price of $20 per unit, what is the total demand? (b) Explain why elasticity of total demand is not defined at a unit price of $15.