Question
9See Hint
Suppose seven individuals enjoy going to the comedy club. Their demand is as follows
Person
Willingness to pay
Allison
Beatrice
Cally
David
Ezekiel
Francesca
Gertrude
40
36
32
28
24
20
16
Suppose the comedy club had a monopoly and a marginal cost of $7per entrant. Suppose the club could perfectly price-discriminate.
That is, it could charge each customer a different price equal to his or her maximum willingness to pay, How
comedy club sell?
many tickets would the
SUBMIT ANSWER
16/17>
9 OF 17 QUESTIONS COMPLETED
MacBook Pro
expand button
Transcribed Image Text:9See Hint Suppose seven individuals enjoy going to the comedy club. Their demand is as follows Person Willingness to pay Allison Beatrice Cally David Ezekiel Francesca Gertrude 40 36 32 28 24 20 16 Suppose the comedy club had a monopoly and a marginal cost of $7per entrant. Suppose the club could perfectly price-discriminate. That is, it could charge each customer a different price equal to his or her maximum willingness to pay, How comedy club sell? many tickets would the SUBMIT ANSWER 16/17> 9 OF 17 QUESTIONS COMPLETED MacBook Pro
Expert Solution

Want to see the full answer?

Check out a sample Q&A here
Blurred answer
Students who’ve seen this question also like:
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
Not helpful? See similar books
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Making Economics Decisions. 1QTC
marketing sidebar icon
Want to see this answer and more?
Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*
*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.

Related Economics Q&A

Find answers to questions asked by students like you.

Q: O See Hint Suppose seven individuals enjoy going to the comedy club. Their demand is as follows.…

A: We are given seven individuals and their willingness to pay for comedy club. Also, it is stated that…

Q: Figure 15-15 Price 50 45 + 40 + 35 30 + 25 20 + 15 -MC-ATC 10 + MR Demand 3+ 50 100 150 200 250 300…

A: Answer: Correct option: $1000 (option 3) Explanation: If the monopoly is not allowed to price…

Q: A monopoly market is represented by the following Figure: 4 20 MC 14 ATC to MR Demand 7t 20 Refer to…

A: Monopoly maximizes profit by producing at MR=MC and charging the maximum price consumers are willing…

Q: P. MC P1 ATC P2 D E P. Ps Demand MR P. Q, Q, Free Response Question, AP Microeconomics. la.…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Exercise 5. You are the manager for a monopoly with costs, demand, and marginal revenue as in the…

A: Hi Student, thanks for posting the question. As per the guideline we are providing answers for the…

Q: Problem 2 Elixir Springs is a natural monopoly that bottles Elixir, a unique health product with no…

A: The profit maximizing firm produces output at the point where the marginal revenue is equal to…

Q: $70 $60 $50 $40 $30 $20 LRATC = LRMC $10 Demand = P MR $0 50 100 150 200 250 Output (Q) The diagram…

A: Monopoly operates at the intersection point of LRMC and MR in order to maximize profit The output…

Q: ximizing Monopoly Firm Price, marginal revenue, marginal cost, average total cost $35 29 ATC MC 15 8…

A: Click to see the answer

Q: A monopoly firm notes that at current output and sales levels, its marginal revenue is 5 and…

A: Given; Marginal Revenue= 5 Marginal Cost= 4.10 At profit maximization:-…

Q: Alice is the monopoly producer for DrinkMeTM, a magical potion that makes you shrink in size. Market…

A: Notes: 1. Monopolist maximizes profit when MR = MC. 2. Perfect Competitive firm maximizes profit…

Q: Review the graph at right for a monopoly market (enter all of your responses as whole numbers).…

A: Since you have posted multiple subparts as per the guidelines we can solve only first 3 subparts

Q: Solve the attachment.

A: In Perfect price discrimination the DWL is equal to zero. Hence, no DWL in Perfect price…

Q: Question 2 Alice is the monopoly producer for DrinkMeTM, a magical potion that makes you shrink in…

A: Click to see the answer

Q: 3. Call Your Aunt is a monopoly seller of deli sandwiches. In DC, the demand curve is p y 100 y 16…

A: A monopoly is a company's dominant position in an industry or sector to the point of excluding all…

Q: True of False: A monopolist selling cars in New York finds it unprofitable to raise price by 10%…

A: As the various goods and services sold by sellers got more complicated, there was segregation done,…

Q: he graph below represents sales per week of ABC Inc. Ltd, a monopoly multinational enterprise that…

A: Hi Student, thanks for posting the question. As per the guideline, we are providing answer for the…

Q: Question 2 Alice is the monopoly producer for DrinkMeM, a magical potion that makes you shrink in…

A: In monopoly, MR = MC In perfect competition, P = MC, where MC = dC/dq = 12 Welfare loss = (1/2) x…

Q: Alice is the monopoly producer for DrinkMe"M, a magical potion shrink in size. Market demand for…

A: Working notes: 1. Monopoly profit is maximized when MR = MC, 2. Competitive profit is maximized when…

Q: Elixir Springs is a natural monopoly that bottles Elixir, a unique health product with no…

A: A monopoly firm is the sole supplier of the good in the market and therefore it faces the entire…

Q: Given the exclusive franchise offered by the local government, Giant is the monopoly of local…

A: The deadweight loss refers to the loss in total surplus, which is summation of consumer surplus and…

Q: The accompanying diagram shows the demand , marginal revenue , and marginal cost of a monopolist .…

A: (a) and (b) The condition for profit maximization output and price is: MR=MC In the case of…

Q: 2. Consider the diagram below: price/cost 260 taka 220 taka 175 taka MC-ATC 55 110 MR a) If a firm…

A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Ticket Agent Group Tickets Demand and Costs Demand and Costs: Graph It might help if we could see a…

A: Given Demand for concert tickets : P = 30- Q  Marginal revenue : MR = 30-2Q  Total cost : 10Q…

Q: Question 2 Alice is the monopoly producer for DrinkMeM, a magical potion that makes you shrink in…

A: Click to see the answer

Q: 16. A monopolist receives a subsidy from the government for every unit of output that is consumed.…

A: Subsidy is a add-on benefit to the monopolist.

Q: I know that profit maximization for both a competitive and monopolistic market is MC=MR, however…

A: a. According to the twice-as-steep rule, the marginal cost curve slope twice as steep as the demand…

Q: What is the dead weight loss? a.The loss in welfare due to the monopoly producing a LARGER amount…

A: A dead-weight loss happens when demand and supply are not in balance or in equilibrium, which…

Q: You are a monopolist making a durable good, the widget. Some of your customers have started to sell…

A: a). Increase in the cost of production will leads to increase the price of new gadget. Since used…

Q: QUESTION 3: Consider the demand and cost curves for a local utilities fim. All underlying work must…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: 1.5 2.0 2.5 3.0 3.5 4.0 QUANTITY OF OUTPUT (Thousands of cans of beer) that BYOB charges $2.75 per…

A: A monopoly is a sole producer of a good in the market thus having maximum market power.

Q: wasepose that a monopolist is selling 50.000 units at a price of $1.000. They are paying $20 million…

A: Monopoly exist in short run when they are able to cover variable cost in short run . But in long run…

Q: 11. The economist's objections to monopoly rest on which of the following grounds? A. O There is a…

A: In monopoly, there is a single seller selling unique product to different consumers. The firm has…

Q: The accompanying graph represents a hypothetica natural Natural Monopoly monopoly 10 a. Place point…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: Question 2 Alice is the monopoly producer for DrinkMeM, a magical potion that makes you shrink in…

A: MR = Marginal revenue MC = Marginal cost TR = Total revenue TC = Total cost P = Price Q = Quantity…

Q: Consider a monopoly firm which has T=1000+40Q+0.1 Q² MC=40+0.2 Q and demand is P=240-0.15Q so MR…

A: The monopoly is the market structure which has a single seller and many buyers in the market. The…

Q: Cost & Figure 15 Revenue $10 per unit MC $9 $8 ATC $7 $6 $5 $4 $3 $2 $1 MR 9 10 Quantity (in…

A: The monopolist determines the profit-maximizing output at the point where the marginal revenue curve…

Q: (1A) Say the government places regulation on a natural monopolist so that for its product it can…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Fun Water Park is considering practicing price discrimination in respect of its customers who are…

A: Equilibrium quantity is determined by equating MR=MC and for given quantity price is determined from…

Q: 8. Natural monopoly analysis The following graph shows the demand (D) for cable services in the…

A: The natural monopoly is a kind of monopoly that occurs due to a very high start-up or fixed cost. It…

Q: Question 2 Alice is the monopoly producer for DrinkMe"M, a magical potion that makes you shrink in…

A: Click to see the answer

Q: PRICE QUANTITY DEMANDED LRAC 50 1 10$ 35 2 20$ 20 3 24$ 5 4 37.50$ The table above shows demand and…

A: Monopolies will produce at quantity q, where marginal cost is equal to marginal revenue. Then…

Q: C     Monopoly     Tanya has the following demand curve for selling taffy.  Assume that Tanya has…

A: Monopoly refers to a market in which there is only a single seller of a commodity. The seller has…

Q: The table shows the demand schedule of a monopolist. Calculate marginal revenue and fill in the…

A: Since the given table gives information about the MC, we can calculate MR from the total…

Q: Use the following information for problems 15-17: Consider a market with two individuals, A and B,…

A: Pa=100-qa        Qa=100-Pa                 TC= 30Q =30(Qa+Qb)Pb=85-.5qb        Qb=170-2Pa…

Q: The diagram below shows a monopolist's MC and ATC curves as well as the industry demand and MR…

A: Hi Student, thanks for posting the question. As per the guideline we are providing answers for the…

Q: Assume that instead of having two firms in the market, we have a monopoly facing the inverse demand…

A: In first degree price discrimination, Monopolist charges different price to each consumer based on…

Q: $50 $45 $40 $35 $30 $25 ATC, Demand = P $20 $15 "LRATC = LRMC $10 MR $5 $0 20 40 60 80 100 120…

A: In the short run, we consider short-run marginal cost and in the long run, we consider the long-run…

Q: 2. The demand schedule for the product produced by a monopolist is given in the table below.…

A: Quantity Price Total revenue Marginal revenue 1 325 325 - 2 300 600 275 3 275 825 225 4…

Q: The monopolist's profit-maximizing output is Price, cost, marginal revenue of diamond $100 60 20 MC…

A: In a market, a monopolist has similar constraint for profit Maximizing output as a perfectly…

Q: $70 $60 $50 $40 $30 $20 -LRATC = LRMC $10 Demand = P MR $0 50 100 150 200 250 Output (Q) The diagram…

A: A deadweight loss is an expense for society made by market shortcomings, which happens when market…

Knowledge Booster
Recommended textbooks for you
  • ENGR.ECONOMIC ANALYSIS
    Economics
    ISBN:9780190931919
    Author:NEWNAN
    Publisher:Oxford University Press
    Principles of Economics (12th Edition)
    Economics
    ISBN:9780134078779
    Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
    Publisher:PEARSON
    Engineering Economy (17th Edition)
    Economics
    ISBN:9780134870069
    Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
    Publisher:PEARSON
  • Principles of Economics (MindTap Course List)
    Economics
    ISBN:9781305585126
    Author:N. Gregory Mankiw
    Publisher:Cengage Learning
    Managerial Economics: A Problem Solving Approach
    Economics
    ISBN:9781337106665
    Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
    Publisher:Cengage Learning
    Managerial Economics & Business Strategy (Mcgraw-...
    Economics
    ISBN:9781259290619
    Author:Michael Baye, Jeff Prince
    Publisher:McGraw-Hill Education
  • ENGR.ECONOMIC ANALYSIS
    Economics
    ISBN:9780190931919
    Author:NEWNAN
    Publisher:Oxford University Press
    Principles of Economics (12th Edition)
    Economics
    ISBN:9780134078779
    Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
    Publisher:PEARSON
    Engineering Economy (17th Edition)
    Economics
    ISBN:9780134870069
    Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
    Publisher:PEARSON
    Principles of Economics (MindTap Course List)
    Economics
    ISBN:9781305585126
    Author:N. Gregory Mankiw
    Publisher:Cengage Learning
    Managerial Economics: A Problem Solving Approach
    Economics
    ISBN:9781337106665
    Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
    Publisher:Cengage Learning
    Managerial Economics & Business Strategy (Mcgraw-...
    Economics
    ISBN:9781259290619
    Author:Michael Baye, Jeff Prince
    Publisher:McGraw-Hill Education