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- Only one firm produces and sells soccer balls in the country of Wiknam, and as the story begins, international trade in soccer balls is prohibited. The following equations describe the monopolist's demand, marginal revenue, total cost, and marginal cost: Demand: P=15−QP=15−Q Marginal Revenue: MR=15−2QMR=15−2Q Total Cost: TC=3+Q+0.5Q2TC=3+Q+0.5Q2 Marginal Cost: MC=3+QMC=3+Q where QQ is quantity and PP is the price measured in Wiknamian dollars. The monopolist produces ( ? ) soccer balls and sells them at a price of ($) each. The monopolist's profit is ($) in this case. One day, the King of Wiknam decrees that henceforth there will be free trade—either imports or exports—of soccer balls at the world price of $10. The firm is now a price taker in a competitive market. The domestic production of soccer balls will ( rise or fall ) ? to ( ? ) soccer balls, and domestic consumption will ( rise or fall ) to ( ? ) soccer balls. Therefore, Wiknam will (…Find the economic profit of a monopolist using the following information: Demand: p = 130—3Q Total cost: TC = 100 + 30QSuppose you are a monopolist in the market for a specific Q video game. Your demand curve is given by P = 80- - and 2 your marginal cost curve is MC = Q. Your fixed cost is $400. i) Derive the marginal revenue curve. ii) Calculate the equilibrium price and quantity. iii) What is the profit?
- The following graph attached shows the demand, marginal revenue, and marginal cost curves for a monopolist. (a) Which area shows total surplus under monopoly? (b)Which area shows dead weight loss?Only one firm produces and sells soccer balls in the country of Wiknam, and as the story begins, international trade in soccer balls is prohibited. The following equations describe the monopolist's demand, marginal revenue, total cost, and marginal cost: Demand: P=15-Q Marginal Revenue: MR = 15-20 Total Cost: Marginal Cost: TC=3+Q+0.50² MC = 3+Q where Q is quantity and P is the price measured in Wiknamian dollars. The monopolist produces soccer balls and sells them at a price of s each. The monopolist's profit is s The domestic production of soccer balls will to Wiknam will soccer balls in this case. One day, the King of Wiknam decrees that henceforth there will be free trade-either imports or exports-of soccer balls at the world price of $10. The firm is now a price taker in a competitive market. soccer balls, and domestic consumption will to in this case. In the analysis of international trade in Chapter 9, a country becomes an exporter when the price without trade is below the world…Marginal Analysis II Question 3 Assume that a monopolist faces a demand curve for its product given by: p=100−1qp=100-1q Further assume that the firm's cost function is: TC=470+9qTC=470+9q Using calculus and formulas (don't just build a table in a spreadsheet as in the previous lesson) to find a solution, what is the profit (rounded to the nearest integer) for the firm at the optimal price and quantity? Round the optimal quantity to the nearest hundredth before computing the optimal price, which you should then round to the nearest cent. Note: Non-integer quantities may make sense when each unit of q represents a bundle of many individual items. Hint 1: Define a formula for Total Revenue using the demand curve equation. Then take the derivative of the Total Revenue and Total Cost formulas to compute the Marginal Revenue and Marginal Cost formulas, respectively. Use these Marginal Revenue and Marginal Cost formulas to perform a marginal analysis. Hint 2: When computing the total…
- The data below relate to a monopolist and the product it produces. If the firm wants to maximize profit, what output and price will it choose? Quantity Price per Unit Total Cost 0 $22 $20 1 $20 $24 2 $18 $27 3 $15 $32 4 $14 $40 5 $12 $49 6 $10 $59 Question 1 options: a) Q=4 : P=$14 b) Q=5 : P=$12 c) Q=2 : P=$18 d) Q=3 : P=$15.Refer to the above table. Given the demand and cost schedules, what is the profit maximizing quantity for this monopolist?The table below shows a monopolist's demand curve and the cost information for the production of its good. If the monopolist is trying to maximize its profit what would it be? Quantity Price per Unit Total Cost 10 $100 $100 20 $80 $400 30 $60 $800 40 $40 $1,400 50 $20 $2,400 Question 40 options: a) $1,200 b) $1,000 c) $1,600 d) $1, 800
- Only one firm produces and sells soccer balls in the country of Wiknam, and as the story begins, international trade in soccer balls is prohibited. The following equations describe the monopolist's demand, marginal revenue, total cost, and marginal cost: Demand: P = 10 - Q Marginal Revenue:MR = 10 - 2 Q Total Cost TC= 3 + Q+0.5 Q2 Marginal Cost: MC= 1+ Q, where Q is quantity and Pis the price measured in Wiknamian dollars. a. How many soccer balls does the monopolist produce? At what price are they sold? What is the monopolist's profit? b. One day, the King of Wiknam decrees that henceforth there will be free trade-either imports or exports of soccer balls at the world price of $6.The firm is now a price taker in a competitive market What happens to the domestic production of soccer balls? To domestic consumption? Does Wiknam export or import soccer balls? c. In our analysis of international trade in Chapter a country becomes an exporter when the price without trade is below the…Suppose a profit-maximizing monopolist has total cost and marginal cost as follow TC = 8Q + 10 and MC = 8. It faces the demand curve P = 20-1/5Q. a) What is the equilibrium price and output?b) What is the total profit?c) Calculate the consumer surplus, producer surplus, and deadweight loss if the firm acts as a monopolist. Illustrate your answer with a diagramThe following table shows demand and marginal cost for a monopolist. Calculate marginal revenue (MR) at each quantity. (Enter your response as an integer.) Marginal Revenue (MR) Marginal Cost (MC) Price per Unit Output (units) (Q) (P) 10 -- 1 9. 1 2 8 2 7 3 4 6 4 5 5 5
