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- Give typing answer with explanation and conclusion A monopolist has a demand curve given by P = 88 − Q and a total cost curve given by TC = 34 + Q2. The associated marginal cost curve is MC = 2Q. Suppose the monopolist also has access to a foreign market in which he can sell whatever quantity he chooses at a constant price of 60. How much will he sell in the foreign market? What will his new quantity and price be in the original market?A monopolist is faced with the following cost and revenue curves:(picture) a.What is the maximum-profit price and output,total revenue, total cost and profit? b.If the monopolist were ordered to produce 300 units, what would be the market price and how much profit would now be made c.If the monopolist were faced with the same demand, but average costs were constant at £60 per unit, what output would maximise profit? What would be the price now?................................................................................................. (j) How much profit would now be made? ................................................................................... (k) Assume now that the monopolist decides not to maximise profits, but instead sets a price of £40. How much will now be sold? .................................................................................................................................................. (l) What is the marginal revenue at this…Q)Economics A market comprises two consumers groups: high-demand types and low-demand types. The high types have demand QH = 10 – P and low types have demand QL = 8 – P. If a monopolist has marginal cost MC = 1 + Q, what is the profit maximising price the monopolist would charge if they are not able to price discriminate? a. 5 b. 6 c. 4 d. 7
- 2. A monopolist faces the demand curve p=250-2q and its total cost function is given by TC = F + 10q, where F is a non-negative fixed cost. a. Find the profit-maximising price and quantity produced for the monopolist. b. What is the highest value of F that allows the firm to earn profits (of zero or more) rather than losses?Suppose that the monopolist's demand is: P = 8 – Q, and marginal revenue is: MR = 8 – 2Q. - The marginal cost is: MC = 2, and there is no fixed cost. a.Find out the profit maximizing output level. b.Specify the amount of economic profit or loss at the profit maximizing output. c.Calculate the price elasticity of demand at the profit maximizing point and explain it.What quantity (Q) will the profit - maximizing monopolist below produce, what price (P) will they charge, and how much will their profit or loss be? a.) Q = 8 units P = $5,000 Profit = $40,000 b.) Q = 8 units P = $7,000 Profit = $ 24,000 c.) Q = 8 units P = $4,000 Profit = $32,000 d.) Q = 8 units P = $7,000 Profit = $56,000 Price (in thousands of dollars) $11 $10 $9 y C S = MC ATC $8 $7 $6 $5 AVC ATC $4 AVC $3 Firm Demand $2 $1 0 2 4 6 8 10 12 14 Quantity of MR Output Market = Firm
- es The following table contains demand and cost data for a monopolist. Complete the table by filling in the columns for total revenue, marginal revenue, and marginal cost. Answer these three questions: (a) What output will the monopolist produce? (b) What price will the monopolist charge? (c) What total profit will the monopolist receive at the profit-maximizing level of output? Quantity Price Total revenue Marginal revenue Total cost Marginal cost O $34 $ 1 32 30 28 26 24 22 20 18 16 14 234 5678 9 10 $ $20 36 46 50 54 56 64 80 100 128 160 $B) The table below shows the information on quantity, price and cost of a monopolist. Assume that the fixed cost is $20, Quantity Price Total Variable Cost 10 $9 $20 20 $8 $60 30 $7 $120 40 $6 $200 50 $5 $300 60 $4 $420 Determine the optimal output of the firm and compute the profit or loss of the firm at the optimal output. At what price will the monopolist exit from the industry?2. Use the following figure, depicting a Monopolist's cost curves, to answer the questions below: Price P₁ P₁ P₂ Q₁ Q₂ MC MR Q AC Demand Quantity a. Why is demand downward sloping? b. What is the Monopolist's equilibrium price? Equilibrium quantity?
- 1. The table shows the demand schedule of a monopolist. Calculate marginal revenue and fill in the revenue column in the table. Assume that output can only be sold in integer amounts (i.e., 1 unit, 2 units, etc.). 2. Once you have filled in marginal revenue, identify the quantity produced by the monopolist in this market.Suppose that a monopolistic seller of designer handbags faces the following inverse demand curve: P 100-q. The seller can produce handbags for a constant marginal and average total cost of $20. Calculate the profit-maximizing price for this seller Page ) Suppose the government levies a $6 tax per unit on sellers of handbags. Calculate how this tax will affect the price the monopolist charges its b. customers. Who bears the burden of this tax?2. Think about a monopolist, the market (inverse) demand function is: P = 30-2Q, his cost function is: C(Q) = 5+ Q?, a. What is the monopolist's optimal quantity and price? b. What is the monopolist's highest profit? %3D
