400- 300- 200- - MC = AC 100- 25 50 75 100 A profit - maximizing monopolist will never operate in the portion of the demand curve with price elasticity equal to A. -3. В. -1. С. -1/3. D. None of the pove-the price elasticity does not matter.
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- Once a monopolist has determined its profit-maximizing (equilibrium) quantity of output, QM, which condition does it use to set the price? Question 9Answer a. None of the other options are correct b. Price = Demand at QM c. Price = Average Cost at QM d. Price = Marginal Cost at QMA monopolist faces market demand given by P= 250-0.5Q. For this market, MR = 250-Q and MC = 100. What is the deadweight loss due to this monopoly. Question 53 options: $15,000 $7,500 $5,250 $11,250 Another value (not listed)J 7 The quantity demanded, Q, of a monopolist’s product is a function of price, P, as given by the equation Q = 50 – P. If currently P = 40 and Q = 10, what is the marginal revenue (MR) associated with adding one more unit of output? a. –$29 b. –$31 c. $31 d. $1 e. $29
- The profit-maximizing quantity of a monopolist facing a downward-sloping demand curve must be produced at a point where the demand is elastic (meaning the demand elasticity with respect to price e < -1). True or false? Why?A monopoly firm has estimated the own price elasticity of their market to be Q,P= -14.5at the quantity Q = 30 and price P = $169. If the monopolist cost function is given by: C(Q) = 25 + 11Q + 3Q2 a. How should this firm be managed? b. How much output will be supplied to the market and what price will be charged?Q-2: Given that the industry demand curve is X(p) = 3000 −15p and a firm’s marginal cost is 50 (M C = 50),a) In perfect competition, what is the prevailing market price?b) For a monopolist in this setting, solve for the optimal quantity supplied and the prevailing market price.c) What is the elasticity of demand in the monopolist’s market? Solve for the elasticity of demand using the market price and quantity that results from the monopolist’s optimal decision.d) Calculate the mark-up. Show that the price the monopolist sets coincides with the price from perfect competition after the mark-up is applied.
- Assume a single-price monopolist has an inverse market demand curve given by P(Q)=300-0.5Q, and has a cost curve: C(Q)=125+20Q+0.5Q2. We already know that Monopolist will provide 140 units, Economic profit is 19475, and Economic Rent is 190. If the impact of a 35% ad valorem tax imposed on the consumers in the market. Then: Q1: What is the equilibrium quantity will be sold in the after-tax equilibrium? Q2: What are the economic rents of the monopolist?Only 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.…(1) A monopolist is forced to lower its price in order to sell another unit of its product. This describes the problem of A-persistent economic profits. B-market power. C-diseconomies of scale D-economies of scale. E-market discrimination (2)Koel is the single producer of home air conditioners in its rural market. The firm's monthly demand is described by the equation P = 5000 − 5Q, where P is the price and Q is the quantity of units sold. Which of the following must be true of Koel? A-An increase in price decreases the quantity sold. B-It is a natural monopoly. C-A decrease in price decreases the quantity sold. D-Higher levels of output bring in increasingly lower total revenue if demand is elastic. E-Maintaining the current price decreases the quantity sold over time. (3)Nori is a firm that sells products in an industry with a very high concentration of sellers. Nori's production decisions must consider its competitors' possible production decisions. In which market must…
- 9 [32] A profit-maximizing monopolist is currently selling its product at a price which is 4 times its marginal cost. Accordingly, provided the firm is maximizing profit, the current price elasticity of demand is: A. elastic B. inelastic C. unit elastic [34] Suppose the market demand for caviar is given by Q = 40 - 2P, where Q is quantity demand and P is price. In which range below is the price elasticity of demand in the elastic category? A. 0 < P < 6 B. 30 < Q < 35 C. 12 < P < 15 D. Q > 25Give 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?In a monopoly type market; the current price is $100.00, the quantity is 10,000, the tax on economic profits 4% of economic profits, the price elasticity of demand (constant) is -2.5, and MC is $60. What is the price with tax for a monopoly market?
