The figure above shows demand and marginal revenue for a single price monopoly. At any price above $ demand is elastic. Assume production costs are constant and equal to $750.00 (i.e., AC = MC = $750). 1) Output is units per day at a price of $ per unit. 2) Profit is $ 3) Consumer surplus is $ 4) If this market was perfectly competitive, output would exceed the single-price monopoly output by units.

What is the value of producer surplus? What is the value of deadweight loss? Assume that the firm is a monopoly with perfect price discrimination. What is its profit?

You have been granted a monopoly in the avocado market. The market demand for avocados is Q = 2000 – 2P. Your cost structure is such that your total costs are TC = 1000+ 400Q. (limit: whatever needed)   What is your profit maximizing price and quantity? Explain this in words and show it graphically. What are the profit, producer surplus and consumer surplus? The government is thinking about breaking your monopoly into ten identical firms and giving ownership to 10 random people. Correspondingly, each firm would have a fixed cost of $1000 and a marginal production cost of $400 per unit. In this perfectly competitive environment, what would be the equilibrium price and quantity? Explain this in words and show it graphically. What are the profit per firm, producer surplus and consumer surplus that correspond to your answer to part d)? How much would you be willing to pay to keep the government from taking your monopoly away? Explain.

The following graph gives the demand (D) curve for water services in the fictional town of Streamship Springs. The graph also shows the marginal revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve for the local water company, a natural monopolist. On the following graph, use the black point (plus symbol) to indicate the profit-maximizing price and quantity for this natural monopolist. PRICE (Dollars per hundred cubic feet) 40 36 32 28 24 20 0 0 1 2 3 5 6 7 8 QUANTITY (Hundreds of cubic feet) MR 4 True ATC MC O False 9 10 D The water company is experiencing economies of scale. Which of the following statements are true about this natural monopoly? Check all that apply. + Monopoly Outcome The water company must own a scarce resource. It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers. In order for a monopoly to exist in this case, the government must have intervened and created it.…

A monopolist's inverse demand function is estimated as P= 400 - 2Q. The company produces output at two facilities; the marginal cost of producing at facility 1 is MC₁(Q1) = 7Q₁, and the marginal cost of producing at facility 2 is MC2(Q2)=2Q2- a. Provide the equation for the monopolist's marginal revenue function. (Hint: Recall that Q₁ + Q₂ = Q.) MR(Q) = 400 $ 7Q₁- b. Determine the profit-maximizing level of output for each facility. Instructions: Round your response to two decimal places. Output for facility 1: 14 Output for facility 2: 50 c. Determine the profit-maximizing price. Instructions: Round your response to the nearest penny (two decimal places). 272 x 4 Q2

Graphically show a monopoly firm that currently sells 250 units of output at a price of $60/unit, where the marginal revenue of the 250th unit is $40, the marginal cost of the 250th unit is $50, and the average total cost at 250 units is $60. [Hint: Based on the information given, is the quantity you’re asked to show the profit-maximizing quantity? Think about what has to be true for profit-maximization.] Based on the graph and assuming the firm attempts to profit maximize (and succeeds), what would happen to price, quantity, MR, MC, and ATC?  (rise, fall, or stay the same?)

consider a dmoestic monopoly in a small country that produces a good with the following inverse demand curve: P = 100 - 1/4Qd. The monopoly has marginal cost of MC = 20 + 1/2Q. In the absence of free trade, complete the following: A) Calculate the equilibrium price and quantity. B) Calculate the consumer surplus, producer surplus (note the shape), and total surplus.                                                                                                                                             Now, suppose the home market opens up to free trade ant that the world price is $60 per unit. C) Calculate the home firm's quantity (supplied), home quantity (demanded), import quantity, and price. D) Calculate the consumer surplus, producer surplus, and total surplus.                                                                                                   Now, suppose the home market opens up to free trade, but imposes a tariff of $10. E) Calculate teh equilibrium price and…

Consider a monopoly market in which the market demand curve is given by P = 240 - 2Q, the marginal revenue curve is MR = 240 – 4Q, the marginal cost curve is MC = 2Q, and there are zero fixed costs. Suppose the government intervenes and turns the market into a competitive market, and all the firms in the market have the same marginal cost curve as the monopolist, MC = 2Q, and zero fixed costs. How much is the resulting gain in total surplus? 400 800 300 600

In a monopoly market, you have an inverse demand function P=a-bQ, where Q is total market production and a and b are positive constants. Assume marginal costs of production are a positive constant c.  Obtain the marginal revenue of this firm. Explain why it is different from that of a perfectly competitive firm.  Calculate the lump sum tax which would induce this monopoly firm to exit the market.  Calculate the incentive this monopoly would have to invest in a process innovation. Assume this monopoly has found a way to divide their consumer base into two identifiable groups. Discuss the impact this would have on the prices consumers pay.

If, in a monopoly market, the demand for a product is p = 195 − 0.10x and the revenue function is R = px, where x is the number of units sold, what price will maximize revenue? (Round your answer to the nearest cent.)