You are the manager of a monopoly, and your demand and cost functions are given by P=200-20 and C(O)- 2,000 + 30, respectively. a. What price-quantity combination maximizes your firm's profits? b. Calculate the maximum profits. c. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price-quantity combination? d. What price-quantity combination maximizes revenue? e. Calculate the maximum revenues. f. Is demand elastic, inelastic, or unit elastic at the revenue-maximizing price-quantity combination?
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- You are the manager of a monopoly, and your analysts have estimated your demand and cost functions as P = 500 − 2Q and C(Q) = 2,500 + 2Q2, respectively. d. What price–quantity combination maximizes revenue? Instructions: Round your response to the nearest penny (two decimal places). Price: $ Quantity: units e. Calculate the maximum revenues. Instructions: Round your response to the nearest penny (two decimal places). $ f. Is demand elastic, inelastic, or unit elastic at the revenue-maximizing price–quantity combination? multiple choice 2 Inelastic Unit elastic ElasticYou are the manager of a monopoly, and your analysts have estimated your demand and cost functions as P = 300 − 3Q and C(Q) = 1,500 + 2Q2, respectively. a. What price-quantity combination maximizes your firm’s profits? Price: Quantity: b. Calculate the maximum profits. $ c. Is demand elastic, inelastic unit elastic Elastic d. What price-quantity combination maximizes revenue? Price: Quantity: e. Calculate the maximum revenues. $ f. Is demand elastic, inelastic, or unit elastic at the revenue-maximizing price-quantity combination? multiple choice Elastic Unit elastic Inelastic1.) You are the manager of a monopoly, and your demand and cost functions are given by P = 200 − 2Q and C(Q) = 1,400 + 2Q2, respectively. a. What price-quantity combination maximizes your firm's profits? b. Calculate the maximum profits. c. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price-quantity combination? 2.) Determine the profit-maximizing output and price, and discuss its implications, if: 1. You are a monopolistically competitive firm and the inverse demand is P = 100 - Q and your cost is C(Q) = 125 + 4Q2 2. You are a monopoly and the inverse demand is P = 200 - Q and your cost is C(Q) = 150 + 4Q2 3.) Suppose the inverse demand function for two Cournot duopolists is given by P = 10 - (Q1 + Q2) and their costs are zero. A. What is each firm's marginal revenue and reaction functions? B. Determine the Cournot equilibrium outputs and equilibrium price. What is the implication of this model?
- You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Analysts at your firm have determined that group 1's elasticity of demand is -6, while group 2's is -2. Your marginal cost of producing the product is $80. a. Determine your optimal markups and prices under third-degree price discrimination. Instructions: Enter your responses rounded to two decimal places. Markup for group 1: Price for group 1: $ Markup for group 2: Price for group 2: $ b. Which of the following are necessary conditions for third-degree price discrimination to enhance profits. Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click twice to empty the box. There are two different groups with different (and identifiable) elasticities of demand. Check We are able to prevent resale between the groups. At least one group has…HotAir Balloon Rides is a single-price monopoly. The table gives the demand schedule for balloon rides (columns 1 and 2) and HotAir's total cost schedule (columns 2 and 3). Now suppose that the government places a fixed tax of $40,000 a month on HotAir. What is HotAir's new profit-maximizing output, price, and economic profit? >>> Remember that the amounts in the table are given in thousands of dollars. When HotAir is producing its new profit-maximizing output, the number of rides it produces is a month. >>> Answer to 1 decimal place. Price (thousands of dollars per ride) 180 170 160 150 140 130 Quantity (rides per month) O 12345 0 Total cost (thousands of dollars per month) 25 150 285 430 585 750You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Group 1's elasticity of demand is -3, while group 2's is -5. Your marginal cost of producing the product is $40. Instructions: Enter your responses rounded to two decimal places. a. Determine your optimal markups and prices under third-degree price discrimination. Markup for group 1:[ Price for group 1: $ Markup for group 2: Price for group 2: $
- You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Analysts at your firm have determined that group 1's elasticity of demand is -5, while group 2's is-2. Your marginal cost of producing the product is $30. a. Determine your optimal markups and prices under third-degree price discrimination. Instructions: Enter your responses rounded to two decimal places. Markup for group 1: [ Price for group 1: $1 Markup for group 2: Price for group 2: $1 b. Which of the following are necessary conditions for third-degree price discrimination to enhance profits. Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click twice to empty the box. At least one group has elasticity of demand greater than 1 in absolute value. We are able to prevent resale between the groups. There are two different groups with…Which lettered point (i.e. A,B,C,D) is at the price-quantity combination that would exist under an unregulated monopoly? Which lettered point (i.e. A,B,C,D) is at the price-quantity combination that would be efficient, from society’s perspective? Which lettered point (i.e. A,B,C,D) is at the price-quantity combination that, in theory, the regulator aims for? Send to: EveryoneYou are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Analysts at your firm have determined that group 1's elasticity of demand is -6, while group 2's is -4. Your marginal cost of producing the product is $50. a. Determine your optimal markups and prices under third-degree price discrimination. Instructions: Enter your responses rounded to two decimal places. Markup for group 1: Price for group 1:$ Markup for group 2: Price for group 2: $ b. Which of the following are necessary conditions for third-degree price discrimination to enhance profits. Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click twice to empty the box. We are able to prevent resele between the groups. At least one group has elasticity of demand less than one in absolute value. There are two different groups with different…
- You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Group 1’s elasticity of demand is -4, while group 2’s is -5. Your marginal cost of producing the product is $60.a. Determine your optimal markups and prices under third-degree price discrimination. Instructions: Enter your responses rounded to two decimal places.Markup for group 1: Price for group 1: $ Markup for group 2: Price for group 2: $ b. Which of the following are necessary conditions for third-degree price discrimination to enhance profits.Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click twice to empty the box. At least one group has elasticity of demand greater than 1 in absolute value.unanswered At least one group has elasticity of demand less than one in absolute value.unanswered We are able to prevent resale…Sara is a single-price, profit-maximizing monopolist who sells her own patented perfume (shown in the graph below). a. What is the equilibrium price and quantity under monopoly conditions? b. If instead Sara had to operate like a competitive firm, what would be the equilibrium price and quantity? c. What is the deadweight loss and total loss to consumer surplus when Sara operates as a monopoly? d. How much surplus would Sara have if she could act as a perfectly price-discriminating monopolist?1. Suppose a firm operates as a monopoly in the domestic (home) market for a product. The demand for itsproduct is given by the inverse demand function: P = 120 −QD. The company’s costs are: T C = 20Q+ 200and MC = $20.A) Find the firm’s profit-maximizing output and price as a monopoly.B) Find the firm’s total profit in the monopoly market.2. Suppose the home country open up to free trade and a foreign competitor enters the market. Assume thatthe foreign firm has the same cost structure as the home firm (the monopoly from the previous question).A) Derive the best response function for each firm (h-home and f-foreign)B) Find each firms’ output, the home market price, and each firms’ profit from the home market3. Now, suppose that in addition to the home country opening up to free trade, the foreign country has alsoopened up to free trade. As a result, both firms sell their product in both markets.A) Find each firms’ overall output, market price in each market, and each firms’ overall…