Price 180 168 156 144 132 120 108 96 84 72 60 48 36 24 12 0 0 36 72 108 144 180 P 216 252 288 324 360 396 432 468 Quantity MR <---MC=AC A monopoly face the following demand, marginal revenue and marginal cost functions Note that in this case MC (Q) = AC (Q) for all Q. Calculate the monopoly's profits if the monopoly perfectly price discriminates 504
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- In British Columbia, Canada a company named after Tim Hortons runs a monopoly on a sweet snack called Timbits! Suppose the demand for Timbits is P=90-Q and the cost function is C-Q How much would the consumer surplus, producer surplus and DWL be in case Tim Hortons a single-price monopoly? Suppose Tim Hortons could install a device in its premises that could immediately 11) predict the willingness to pay of every unsuspecting customer entering its franchise premises and charge them that corresponding amount! Additionally, suppose they could also stop resale of products, and thus become a first degree price discriminatıng monopoly. How much would the consumer surplus, producer surplus and DWL be in this case?Price 180 168 156 144 132 120 108 96 84 72 60 48 36 24 12 0 9 0 135 180 225 270 405 450 495 540 585 630 675 -PMR -MC AC A monopoly face the following demand, marginal revenue and marginal cost functions Note that in this case MC(Q) = AC(Q) for all Q. Calculate the monopoly's profits if the monopoly charges the single profit maximizing price 315 360 QuantityQuestion 2 Alice is the monopoly producer for DrinkMeTM, a magical potion that makes you shrink in size. Market demand for this potion is given by p = 60 - 3Q and Alice's costs of production are C(q) = 12g. Please calculate the following quantities. %3D %3D a) Monopoly price, quantity and profits b) The fair market price in perfect competition c) The welfare loss which occurs due to the monopoly
- A monopolist practices perfect price discrimination. The monopoly faces a market demand curve and has a total cost of production given below: P=50-Q and TC = 20Q %3D What do economic profits equal for this perfect price discriminating monopolist? * 600 1050 450PRICE (Cents per Kilovatt-hour) 9 38 2227222 32 m 4 D 1 MR 2 5 8 3 4 7 QUANTITY (Thousands of kilowatt-hours) 8 ATC MC 9 10 D + Monopoly Outcome Which of the following statements are true about this natural monopoly? Check all that apply. The electricity company is experiencing diseconomies of scale. The electricity company is experiencing economies of scale. It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers. The electricity company must own a scarce resource.=b10| || || phphattempt 631066&cmid=55726&page-31 $25 4 aaa $5 S Select one Ob $50 O $500 04 $1,000 888 The diagram above shows the demand and cost curves for a market that could either be a monopoly or perfectly competitive in Long Fun Equilibrium the market a onopoly Deadweight Loss DWL) would be R F % 5 V T 200 300 400 500 600 Output 10) G M 6 B MacBook Air PR LAATC LMC Y Demand P H &7 U N 8 61 M W DI K GTE " O 1 Next 0 V L
- 3. Consider a monopolist who faces the following demand: Demand: P= 100 – 10Q MC= 50+20 a) Find the price quantity combination that maximizes profit for the monopolist. b) Is the firm making positive, negative or zero profits? (100,100) Kareem chooses (60, 105) (500, 400) Saleem chooses Kareem chooses (50,420) 4. Calculate the SPNE/SPNES for the game stated above.The accompanying diegram depicts a monopolist whose price is regulated at $10 per unit Use this figure to answer t follow Price 26 24 MC 22 20 18 16 14 12 Regulated Price es 10 8 6. 4 E 0. 1 234 5 6789 1011 12 13 1415 Quantity a. What price will an unregulated monopoly charge? %24 hat quantity will an unregulated monopoly produce?The graph below shows the Market conditions of Honey's Laundry service, which is the only laundry in Banani Residential Area. Considering the shop as a Monopoly market, answer the following questions: Price, marginal revenue, marginal cost, average total cost 60 ATC 50 45 38 35 32 30 20 MR 110 125 130 140 145 Quantity of output (per week) (a)ln order to maximize profit, how many clothes does the shop clean ?[Answer in numerical value only without any unit] (b)lf the opening of five new laundry turns it into a perfectly competitive market, what should be the price Sunny's laundry be charging now?[Answer in numerical value only without any unit) (c)Compute the change in total revenue between part a and part b.[Answer in numerical value only without any unit]
- Columns 1 and 2 make up a portion of a monopolist's production function for a single variable input, labor. Columns 2 and 3 represent the demand function facing the monopolist over this range of output: (1) (2) Units of Labor Units of Output 3 370 4 490 5 570 6 600 620 7 (3) Price $10 9 8 7 6 If an increase in consumers' income increases product price by $2 at each level of output, how many units of labor will the firm employ at a wage rate of $300?Explain why a computer store offering significant student discounts may require student buyers to sign an agreement not to purchase another computer from the store for a period of six months.- Monopoly ChapterThe table below shows cost data for producing different amounts of cars. Suppose this market is a monopoly. Use the information in the table to find the output where the monopoly would maximize profit. Profit maximizing quantity: Price ($) Quantity Total Revenue ($) Total Cost ($) 150 0 0 60 120 3 360 108 100 600 240 90 810 405 80 960 672 70 1050 1050 What is the profit the monopoly achieved? $ 9 12 15 A ▶