Use the graph to answer the following 5 questions. A single priced unregulated monopolist faces thedemand curve and has the cost curves illustrated in the diagram below.1. What is the profitPricemaximizing quantity ofoutput?70a) 25 units.b) 40 units.c) 50 units.d) 60 units.60e) 70 units.f) 80 unitsg) 90 unitsMarginal Cost502. What price does thismonopolist charge?a) $58b) $2040AverageTotalCostc) $35d) $30e) $45.f) $5030g) $40h) $383. What are the total profits?a) $1200b) $0c) $1250d) $200e) $250.f) $2250.g) $150h) $16002010Demand20406080100120 140 160Quantity

The monopoly market is represented by a single supplier in the market. The monopolist seller…

Use 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 maximizing quantity of output? a) 25 units. b) 40 units. c) 50 units. d) 60 units. e) 70 units. f) 80 units g) 90 units 2. What price does this Price 70 60 60 50 monopolist charge? a) $58 b) $20 40 c) $35 d) $30 e) $45. f) $50 g) $40 30 h) $38 3. What are the total profits? a) $1200 c) $1250 e) $250. g) $150 b) $0 d) $200 f) $2250. h) $1600 20 20 10 20 20 40 40 Marginal Cost Average Total Cost Demand 650 60 80 100 120 140 160 Quantity

Use 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 maximizing quantity of output? a) 25 units. b) 40 units. c) 50 units. d) 60 units. e) 70 units. f) 80 units g) 90 units 2. What price does this Price 70 60 60 50 monopolist charge? a) $58 b) $20 40 c) $35 d) $30 e) $45. f) $50 g) $40 30 h) $38 3. What are the total profits? a) $1200 c) $1250 e) $250. g) $150 b) $0 d) $200 f) $2250. h) $1600 20 20 10 20 20 40 40 Marginal Cost Average Total Cost Demand 650 60 80 100 120 140 160 Quantity

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter14: Indirect Price Discrimination

Section: Chapter Questions

Problem 6MC

See similar textbooks

Similar questions

Imagine that you ale managing a small firm and thinking about entering the market of a monopolist. The monopolist is currently charging a high price, and you have calculated that you can make a nice profit charging 10 less than the monopolist. Before you go ahead and challenge the monopolist, what possibility should you consider for how the monopolist might react?
Given a graph below. A. Name all the lines or curves. B. Identify the pricing behavior of a monopolistwith predatory pricing and identify the profit if a monopolist acts a true monopolist. Explain thepossible relationships among the curves.
In Karachi Nuplex Cinema has a monopoly on the rights to show movies throughout the city. The monopolist knows the price elasticities of demand for movies by children and adults which are 4 and 0.22 respectively. Suppose the monopolist can charge different prices for the children and adults. Explain why the monopolist can charge different prices. Explain for whom shall the monopolist charge higher prices and why. Draw graph to support your answer.
The accompanying diagram depicts a monopolist whose price is regulated at $10 per unit. Use this figure to answer the questions that follow. a. What price will an unregulated monopoly charge?$ b. What quantity will an unregulated monopoly produce?unitsc. How many units will a monopoly produce when the regulated price is $10 per unit?unitsd. Determine the quantity demanded and the amount produced at the regulated price of $10 per unit. Is there a shortage or a surplus?Quantity demanded: units Amount produced: unitsThere is: (Click to select) a shortage neither a shortage nor a surplus a surplus .e. Determine the deadweight loss to society (if any) when the regulated price is $10 per unit.$ f. Determine the regulated price that maximizes social welfare. Is there a shortage or a surplus at this price?$ There is (Click to select) neither a surplus nor a shortage a surplus a shortage at this price.
C. The following table shows a monopolist's demand curve and cost information for the production of its good. What quantity will it produce? What will its profits be? Quantity Price per Unit Total Cost 10 $10 $20 20 $8 $50 30 $6 $65 40 $4 $90 50 $2 $120
The graph below shows the demand and marginal cost curves for the monopolist Mr. Peanut. a. Draw the marginal revenue curve. Plot only the endpoints of the graph below. Costs and revenues 140 120 100 80 60 40 20 0 10 20 30 40 Quantity per period 50 60 D MC Tools marginal revel b. What are the values of the profit-maximizing output and price? Output: Price: $ c. What are the values of output, price and total revenue when the firm's total revenue is maximized? Output: Price: $ Total revenue: $
Graph shows the cost and revenue Information for Shitotsu the monopolist. What are the levels of price, output, total (sales) revenue, and total profits if the monopolist were to produce at the positions (a) through (d) indicated in table below? Costs and revenues 40 36 32 28 24 20 16 12 8 4 0 5 10 15 20 25 30 35 Quantity per period a. Total revenue maximization b. Profit-maximization c. Socially optimum price d. Fair-return price MR D=AR MC AC Price ($) 16 G 15 141 Output 20 20 22.5 Total Revenue ($) 320 300 315 Total Profits ($) 120 180
Draw the demand, marginal revenue, average total cost, and marginal cost curves for a monopolist.(a) Show the profit-maximizing level of output, the profit-maximizing price, and the amount of profit(b) Â Now assume marginal cost pricing is imposed. On the graph, shade the area repre- senting the profit or loss for the firm after marginal cost pricing is imposed.(c) Â Show the level of output that maximizes total surplus. Show the deadweight loss from the monopoly. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
The diagram below shows a monopolist’s marginal cost scheduleand the demand curve. Find and depict the following items within the diagram and briefly explainhow you found them: a) The efficient (i.e., total surplus maximising) quantity. b) The monopolist’s profit maximising quantity. c) The monopolist’s profit maximising price. d) The monopolist’s optimal profit. e) The deadweight loss.
2 The following table shows a monopolist’s demand curve and cost information for the production of its good. What price will it charge? Quantity Price/unit TR MR Total Cost MC Profit 25 $10 $250 --- $110 --- $140 30 $9 $270 $4 $125 $3 $145 35 $8 $280 $2 $130 $1 $150 40 $7 $280 $0 $140 $2 $140 A$9 B$10 C$8 D$7
The graph below shows the demand and marginal cost curves for the monopolist Mr. Peanut. a. Draw the marginal revenue curve. Plot only the endpoints of the graph below. Costs and revenues 110 100 90 80 70 60 50 40 30 20 10 0 D MC 25 50 75 100 125 150 175 200 225 250 Quantity per period Tools marginal revel
The figure below shows the cost (MC, ATC, AVC) and demand curves (D, MR) for a monopolist producing solid silver walking sticks.Based on the figure above, which of the following statements about the monopolist is true? Question 3Answer a. The monopolist is suffering an economic loss and not covering its variable costs. b. The monopolist is suffering an economic loss but covering its variable costs. c. The monopolist is earning a positive profit. d. The monopolist is breaking even.