Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 12, Problem 5RQ
To determine
Monopolist and price discrimination .
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The figure on the right shows the demand schedule for a product produced by a
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A monopolist has variable costs of VC =
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None of the other answers is correct.
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Chapter 12 Solutions
Microeconomics
Ch. 12.4 - The MR curve lies below the demand curve in this...Ch. 12.4 - Prob. 2QQCh. 12.4 - Prob. 3QQCh. 12.4 - Prob. 4QQCh. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQ
Ch. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - 10. LAST WORD Using Big Data to set personalized...Ch. 12 - Prob. 1RQCh. 12 - Prob. 2RQCh. 12 - Prob. 3RQCh. 12 - Prob. 4RQCh. 12 - Prob. 5RQCh. 12 - Prob. 6RQCh. 12 - Prob. 7RQCh. 12 - Prob. 1PCh. 12 - Prob. 2PCh. 12 - Prob. 3PCh. 12 - Prob. 4PCh. 12 - Prob. 5P
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- Exhibit 9-4: A Monopoly Total Quantity Total Fixed Variable Price Demanded Cost Cost $100 $20 $0 90 1 $20 20 80 $20 48 70 3 $20 78 60 4 $20 110 50 $20 150 Refer to Exhibit 9-4. At an output level of 4 units, the monopolist earns a total profits of about O $118.00 O $112.00 O $110.00 O$120.00 2.arrow_forwardThe following diagram depicts the operating conditions for a profit-maximising monopolist. Calculate the deadweight loss created by this monopoly selling at the profit maximising point. Price ($) MC 10 Demand MR 5 7.5 10 Quantity (a) $4.25 (b) $6.25 (c) $8.25 (d) None of the above. 20 15 LO 20 15arrow_forwardPrice $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 0 300 600 700 800 Quantity per day Refer to the graph above. Assuming that this monopolist maximizes profit, it will produce: MR O 800 units of output per day. O 700 units of output per day. O 600 units of output per day. O 300 units of output per day. MC ACarrow_forward
- Table 15-20 A monopolist faces the following demand curve: Quantity Price 0 $30 1 $27 2 3 + $24 $21 $18 5 $15 6 7 8 0 $12 $9 $6 $3 10 $0 Refer to Table 15-20. If a monopolist faces a constant marginal cost of $5, how much output should the firm produce in order to maximize profit? O2 units 3 units 4 units 5 unitsarrow_forwardPrice, cost, marginal revenue of diamond $1,000 800 ator 600 400 MC 200 -200 MR -400 20 8 10 Quantity of diamonds 16 Look at the figure The Profit-Maximizing Output and Price. Assume that there are no fixed costs and AC = MC = $200. The monopolist who can use price discrimination perfectly will produce an output of %3D %3D diamonds. O 20 0 6 О 16 O None of these options is correct.arrow_forwardFigure 15-6 Price Marginal Cost $20 15 10 Demand 100 150 200 Quantity Marginal Revenue Refer to Figure 15-6. To maximize its profit, a monopolist would • choose which of the following outcomes? O100 units of output and a price of $20 per unit 200 units of output and a price of $20 per unit 150 units of output and a price of $15 per unit 100 units of output and a price of $10 per unit « Previous Nextarrow_forward
- Question 17 3아- MC ATC 26 27 26 25 24 AVC 20 MR 100 190 260 300 400 What is the optimal output and price for the prafit maximizing, nondiscriminating monopolist in the exhibit above? O 190 and $30 O 190 and $26 O 190 and $25 O 260 and $28 O 300 and $27 D Question 18 $/9 30- MC ATC 28 27 AVC 26 25 24 D. 2아 MR 100 190 260 300 400 Total cost for this nondiscriminating monopolist at its profit-maximizing output level in the exhibit above is O $7280 O $4750 $5700 None of the choices are correct O $4940 D Question 19 Why is collusian to raise prices highly unlikely among firms in perfectly competitive industries? O All the firms in competitive industries love their consumers too much to ever collude against them O There is only one firm in perfectly competitive industries, so whom would they collude with? • There are too many firms in perfectly competitive industries. O The products are too differentiated for collusion in perfectly competitive industries 3 This is a trick question because…arrow_forwardA monopolist has constant marginal cost equal to 30 and faces a market demand curve given by the following p= 100-2Q. If the monopolist is a perfect price discriminating monopolist its level of profit will be equal to (assume there is no fixed cost): O 1225. O 2450. O2275. O 1150. auto.proctoru.com is sharing your screen. Stop sharing Hide Next • Previous UN 18 SAParrow_forwardSuppose that a monopolist faces linear demand given by Q(p)=90-3"p The monopolist also pays a marginal cost of $2 for each unit produced. What is the price that the monopolist will set to maximize its profits? O 16.5 O 15 O 16 O 15.5arrow_forward
- The figure below shows the total cost and total revenue curves for a monopolist. The profit - maximizing output for the monopolist is 1 unit 2 units 3 units 4 units 5 units The figure below shows the total cost and total revenue curves for a monopolist. The profit-maximizing output for the monopolist is $100 90 80 70 60 50 40 30 20 10 1 unit 0 1 2 3 4 5 6 7 8 9 2 units 3 units O4 units. TR 5 units Q/tarrow_forwardQUESTION 11 Suppose that a pure monopolist can sell 5 units of output at $4 per unit and 6 units at $3.90 per unit. The monopolist will produce and sell the sixth unit if its marginal cost is: O A. S4 or less O B. S3.90 or less O C. $3.50 or less D. S3.40 or lessarrow_forward(Figure: The Profit-Maximizing Output and Price in the Monopoly Diamond Market) Use Figure: The Profit-Maximizing Output and Price in the Monopoly Diamond Market. Assume that there are no fixed costs and that AC = MC = $200. The monopolist who can perfectly price discriminate will produce an output of diamonds. Price, cost, marginal revenue of diamond $1,000 O 20 06 O 16 00 800 600 400 200 0 -200 -400 B A MR 8 10 C MC D 16 20 Quantity of diamondsarrow_forward
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