You have been granted a monopoly in theavocado market. The market demand foravocados is Q = 2000 – 2P. Your coststructure is such that your total costs are TC =1000+ 400Q. (limit: whatever needed)What is your profit maximizing price andquantity? Explain this in words and show itgraphically.What are the profit, producer surplus andconsumer surplus?The government is thinking about breakingyour monopoly into ten identical firms andgiving ownership to 10 random people.Correspondingly, each firm would have afixed cost of $1000 and a marginal productioncost of $400 per unit. In this perfectlycompetitive environment, what would be theequilibrium price and quantity? Explain this inwords and show it graphically.What are the profit per firm, producer surplusand consumer surplus that correspond to youranswer to part d)?How much would you be willing to pay tokeep the government from taking yourmonopoly away? Explain.

Since the question you have posted multiple parts, we will answer the first two parts for you. If…

Answered: You have been granted a monopoly in the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Waterker is the only company selling the gorgeous Perspective fountain pens. The cost to produce q pens is C(q) = 0.5q2 + 10. (In the long run, all costs are avoidable.) The demand for these incredible pens is given by p(g) = 132 - q/10. How much deadweight loss is generated by Waterker's monopoly on the Perspective? Enter a numerical value below. You may round to the second decimal if necessary.
Q1: If only one airline service a town, does a monopoly exist? What about competition from other services? Q2: Suppose that you are an orange grower. Would you expect the demand for your orange to be more elastic or more inelastic? Why? Q3: Mr Han Cook says that marginal cost is just a funny name for average total cost. What do you think about this ideas? Q4: How prices reaches equilibrium? Give an example.
Explanation it correctly
Demand P (q)=100-2q Total Costs C(q)=10+20q . Calculate marginal cost marginal revenue, monopoly price
Question 1 What is the significance of a price elasticity of demand that is equal to 0.4? ( Question 3 Explain the statement, "In the long run, there are no fixed costs." ( Question 4 Why does a perfectly competitive firm not charge a price above the market price? Why does it not charge a price below the market price? ( Question 7 State five criticisms of a monopoly.
Refer to the table below. What is the total cost if the monopoly operates at the profit - maximizing output? Price($) Quantity TR ($) TC ($) 5 2 10 8 4 4 16 10 3 6 18 12 2 8 16 18 1 10 10 25
Sketch a graph of the theater's demand functions, marginal revenue, and marginal cost to find the following: 1. The firm's profit-maximizing price = $____? 2. Ticket output = ____? 3. Economic profit = $ ____? 4. Compute consumer surplus, producer surplus, and deadweight loss
5(Chapter 11 Monopoly) The inverse demand for an app is P = PD (Q) = 30 - 0,4. Q. The inverse demand function indicated the price P, were the quantity Q will be sold. The app is sold just from the app developer. The programing of the app creats fixed costs of 420. The marginal costs are 2. a) Draw the demand curve b) Calculate the marginal revenue and the average cost function. Draw the marginal revenue and marginal cost function in the diagram of a). c) Determine the profit maximizing quantity and price. What are the average costs? What is the profit? Draw the average cost curve and the profit in the diagram. Show the consumer surplus (CS) and producer surplus (PS). d) What are the price and quantity if you a have fixed costs of 490? What is the profit? e) Consider the case that the developer of the App wants to maximize the overall welfare and not just his profit. Determine price and quantity. What is the profit? Show CS and PS. f) Draw the welfare losses of the Monopoly, which occur…
solve correctly. I will rate accordingly.
Suppose that the demand curve for a good is P = 100 – 2Q. The marginal cost curve of a firm in the industry is given by MC = 3Q. Calculate and compare the equilibrium price and quantity under monopoly and perfect competition.
The graph below presents the curves associated with the firm JT Minn.. JT Minn. is a monopolist that produces dishwashers. Move the point on the demand curve to represent the price JT Minn. would charge and the quantity at which they would produce. Price/ Cost (570,$20) (980,$33) Marginal I Revenue I Marginal Cost Demand Quantity
On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 6, 12, 15, 18, 24, and 30 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results. Calculate the total revenue if the firm produces 6 versus 5 units. Then, calculate the marginal revenue of the sixth unit produced. The marginal revenue of the sixth unit produced is________. Calculate the total revenue if the firm produces 12 versus 11 units. Then, calculate the marginal revenue of the 12th unit produced. The marginal revenue of the 12th unit produced is_________.

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

Principles of Economics (MindTap Course List)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

Managerial Economics: A Problem Solving Approach

Economics

ISBN:

9781337106665

Author:

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

Publisher:

Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS