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- 1. Based on the best available econometric forecasts, market elasticity demand for your company's products is -2.5. Marginal cost to produce product is constant at $ 140. Determine the optimal price per unit, if: a.You are a monopolist. b.You compete with one another in the Cournot oligopoly. c.You are competing with 9 other companies in the Cournot oligopoly. 2. The water pump company has succeeded in introducing a water pump that saves electricity, is easy to install, and is durable (guaranteed). Its high quality has given the company an early edge in the local and national markets, but the entry of highly skilled competitors may occur within the next 3 years. Assume that the income and expense relationship of the company is as follows: TR = 22000Q - 15.6Q2 MR = dTR / dQ = 22000 - 31.2Q TC = 300000 + 4640Q + 10Q2 MC = dTC / dQ = 4640 + 20Q Where TR is income (in thousands of rupiah), Q is quantity (in units), MR is marginal income (in thousands of rupiah), TC is total cost,…1. Based on the best available econometric estimates, the market elasticity of demand for your firm’s product is -2.5. The marginal cost of producing the product is constant at $100, while average total cost at current production levels is $175. Determine your optimal per unit price if: Instruction:Round your answers to two decimal places. a. You are a monopolist. $ b. You compete against one other firm in a Cournot oligopoly. $ c. You compete against 19 other firms in a Cournot oligopoly. $ 2. You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Group 1’s elasticity of demand is -2, while group 2’s is -6. Your marginal cost of producing the product is $10. a. Determine your optimal markups and prices under third-degree price discrimination. Instruction:Round your answers to two decimal places. Markup for group 1: Price for group 1: $ Markup for group 2: Price for group…Answer parts a-c plz total cost= 100+2q2 marginal cost = 4q market demand curve = 90-2q monopolist’s marginal revenue curve = 90-4q Part a) What is the quantity, profit, and price of the monopoly? Part b) Assuming a competetive industry, what is quanity, price, and profit? (P=MC can be used for perfect competition) Part c) What is the price elasticity of demand at the monopoly price and quantity? What does this mean in context?
- Question 2: The diagram below shows a monopolist’s MC and ATC curves as well as the industry demand and MR curves. Diagram attached in images. Remaining question 4. Now suppose the industry' is made up of many small, price-taking firms (with the same technology). What are the equilibrium price and level of output in this case? Answer: 5. Identify and explain minimum efficient scale in the above graph. Answer:Question :- A monopolist faces an inverse demand curve given by P= 800 - 2Q and a cost curve given by C(Q)= 40Q + 3Q2. If this firm practices 1st degree price discrimination, it will earn _______ in surplus. Select one: a. $36,100 b. None of these. c. $28,880 d. $0Marginal 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…
- Give typing answer with explanation and conclusion The inefficiency (dead-weight loss) of a monopoly (as compared to perfect competition) indicates the amount by which Group of answer choices price exceeds marginal revenue at a particular output level. consumer welfare is increased by the monopolist. price exceeds marginal cost at a particular output level. marginal benefits exceed marginal cost for those units not produced by the monopolist but that would otherwise be produced in a competitive market. marginal costs exceed marginal benefits for those units not produced by the monopolist but that would otherwise be produced in a competitive market.Price =120-Q^2 Total cost = 30Q Find: 1- consumer surplus 2- profit 3- total social welfare 4- deadweight loss In both perfect competition and pure monopolyFigure: Insulin Prices Suppose a major insulin manufacturer sells in two markets, the U.S.A. and Mexico. If the marginal cost is the same in both markets, to maximize profits, it would charge _______ in the U.S.A. and _________ in Mexico. Group of answer choices $3700, $600 $50, $50 $3650, $550 $600, 3700
- WORD LIMIT – MAXIMUM 500 WORDS Using the Monopoly model, show using diagrams how a monopolist may sustain abnormal profits for the indefinite future. Should the competition commission litigate against firms who have a dominant market position? In your answer, make sure you use a diagram, list the assumptions for the model, and give examples of real world markets that may be dominated by monopolists. The diagram used should be your own and not taken from another source.1a) A monopolist maximizes profit by maximizing price. True False 1b) In the in an advertising "prisoner's dilemma" game,both firms end up __________________ which turns out to be ________________________ advertising; better for them both. advertising; worse for them both not advertising; better for them both not advertising; worse for them both. 1c) In the short run, if a firm shuts down, the firm's total revenue is equal to fixed cost. variable cost. total cost. zero. 1d) Suppose that demand increases in an increasing-cost industry that is in long-run competitve equilibrium.After the market has completely adjusted, the equilibrium price will be above its original level. below its original level. equal to its original level. indeterminate. 1e) Which of the following characteristics can be used to differentiate products in a specific market? Low prices. Advertising. Barriers to entry. Low costs.Please help me understand, thanks For the firm in Figure 10-7, an unregulated monopolist, profit-maximizing output is below the long-run competitive level by how much? a. 100 b. 75 c. 50 d. 35
