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3. A monopolist faces demand P=60−5q, has constant marginal costs of 15, and has zero fixed costs. If this monopolist is able to practice perfect
a) 202.50 dollars.
b) 405.00 dollars.
c) 135.00 dollars.
d) 151.88 dollars.
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- Q62 Assume that Mattel is a monopolist that sells 8 units of a toy per day at a unit price of $16. If it lowers the price to $15, its total revenue increases by $37. This implies that its sales quantity increases by Multiple Choice 1 unit per day. 12 units per day. 2 units per day. 3 units per day. 4 units per day.7. Price discrimination and welfare Suppose Barefeet is a monopolist that produces and sells Ooh boots, an amazingly trendy brand with no close substitutes. The following graph shows the market demand and marginal revenue (MR) curves Barefeet faces, as well as its marginal cost (MC), which is constant at $40 per pair of Ooh boots. For simplicity, assume that fixed costs are equal to zero; this, combined with the fact that Barefeet's marginal cost is constant, means that its marginal cost curve is also equal to the average total cost (ATC) curve. First, suppose that Barefeet cannot price discriminate. That is, it must charge each consumer the same price for Ooh boots regardless of the consumer's willingness and ability to pay. On the following graph, use the black point (plus symbol) to indicate the profit-maximizing price and quantity. Next, use the purple points (diamond symbol) to shade the profit, the green points (triangle symbol) to shade the consumer surplus, and the…A monopolist is currently selling 400 units of output at a price of $20 per unit. The elasticity of demand is € = 2 (negative number). Would this firm wish to sell an additional unit for $19.50 if it could do so without cutting the price charged for the first 400 units sold? Would a perfect competitor ever wish to sell an additional unit at a lower price? Why or why not.
- 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. $0Only answer BOLD and ITALIC part of the question. A monopolist has discovered that the inverse demand function of a person with income Y for the monopolist’s product is P = 0.002Y-Q where P is the price, Y the income, and Q is the output. The monopolist can observe the incomes of its consumers and hence vary its price accordingly. The monopolist has a total cost function C(Q) = 100Q. A monopolist has a constant marginal cost of £2 per unit and no fixed costs. He faces two separate markets in the United States and in the UK. The goods sold in one market are never resold in the other. He sets one price P1 for the US market and another price P2 for the UK market (both measured in £). The demand in the United States is given by Q1=7,000-700P1 and the demand in the UK is given by Q2=1,200-200P2. - Calculate the profit maximising output produced and price charged in each country by the price-discriminating monopolist and comment in which country the price charged is higher and by how much.…Sean is a monopolist who operates a business rigging tablets to run twice as fast as the original specifications. If Sean charges $40, he would have 10 customers, but if he lowers the price to $37, he would have 11 customers. What is the marginal revenue of the 11th customer?
- A monopolist is currently selling 400 units of output at a price of $20 per unit. The elasticity of demand is € = 2. Would this firm wish to sell an additional unit for $19.50 if it could do so without cutting the price charged for the first 400 units sold? Would a perfect competitor ever wish to sell an additional unit at a lower price? Why or why not.5. The allocatively efficient quantity of product Z for the whole market is 2 million units. At that quantity, the demand for Z is at $5 and the average total cost for its single supplier is $7. The average total cost does not fall to $5 until 3.5 million units. Based on this data, the market for product Z is perfectly competitive a natural monopoly a legal monopoly monopolistically competitive productively efficient 7.If a monopolist begins to engage in perfect price discrimination where previously it charged a single price for all its customers, what would be true of its production figures? (2 points) Firm produces more; producer surplus increases; deadweight loss increases Firm produces less; charges higher price; economic surplus decreases Firm produces more; total economic surplus increases; consumer surplus disappears Firm loses allocative efficiency; charges lower price; deadweight loss decreases Firm reaches…1. A company can sell its product in two separate market defined by the following inverse demand functions, P1=10-Q1 , P2=20-1.5Q2 the cost associated with production is given by ?? = 4 + 2Q a) What prices and quantities should the firm charge and produce in each market. b) What profit will the firm make if it practice price discrimination c) If the firm is charging uniform price in all market what price will it charge and what output will maximize profit d) What is the maximum profit for charging same price? e) Calculate the elasticity of demand in each market and comment on your result
- A monopolist firm faces ten consumers with identical demands given by P = 12 – Q and ten consumers with identical demands given by P = 14 – Q. If the firm has marginal cost MC = 3 + 0.1Q, what is total consumer surplus if the firm is able to practice third-degree price discrimination? Select one: a. 65 b. 75 c. 85 d. 95Item 7 Suppose a monopolist’s profit-maximizing output is 400 units per week and that the firm sells its output at a price of $40 per unit. The firm has total costs of $8,000 per week. Assume the monopolist is maximizing its profit and earns $20 per unit from the sale of the last unit produced each week.A monopolist faces two markets (think of it as a domestic market and a foreign market). The demand functions of the two markets are respectively: Q 1 =100 - P 1 ; Q 2 =180 - P 2 The cost function of the monopoly firm is: TC = 40Q. Q1: If this firm charges a uniform price, what price should maximize its profit? What is the total profit? Q2: If this firm charges a Third Degree Price Discrimination, what is the equilibrium price for each market in order to maximize profits? And what is the profit of each market and the total profit?
