A monopoly sells its good in the United States, where the elasticity of demand is -2.3, and in Japan, where the elasticity of demand is -5.5. Its marginal cost is $9. At what price does the monopoly sell its good in each country if resales are impossible? The price in the United States is $15.92 (Round your answer to the nearest penny.) The price in Japan is $ (Round your answer to the nearest penny)

A monopoly sells its good in the United States, where the elasticity of demand is -2.3, and in Japan, where the elasticity of demand is -5.5. Its marginal cost is $9. At what price does the monopoly sell its good in each country if resales are impossible? The price in the United States is $15.92 (Round your answer to the nearest penny.) The price in Japan is $ (Round your answer to the nearest penny)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter11: Price And Output Determination: Monopoly And Dominant Firms

Section: Chapter Questions

Problem 1.1CE

See similar textbooks

Similar questions

Draw a monopolists demand curve, marginal revenue, and marginal cost curves. Identify the monopolists profit-maximizing output level. Now, think about a slightly higher level of output (sayQ0+1). According to the graph, is there any consumer willing to pay more than the marginal cost of that new level of output? If so, what does this mean?
How does the demand curve perceived by a monopolist compare with the market demand curve?
Draw the demand curve, marginal revenue, and marginal cost curves from Figure 9.6, and identify the quantity of output the monopoly wishes to supply and the price it will charge. Suppose demand for the monopolys product increases dramatically. Draw the new demand me. What happens to the marginal revenue as a result of the increase in demand? What happens to the marginal cost curve? Identify the new profit-maximizing quantity and price. Does the answer make sense to you? Figure 9.6 Illustrating Profits at the HealthPill Monolpoly
If public utilities are a natural monopoly, what would be the danger in deregulating them?
From the graph you drew to answer Exercise 11.6, would you say this transit system is a natural monopoly? Justify. Use the following information to answer the next three questions. In the years before wireless phones, when telephone technology requited having a wile matting to every home, it seemed plausible that telephone service had diminishing average costs and might require regulation like a natural monopoly. For most of the twentieth century, the national U.S. phone company was AT&T, and the company functioned as a regulated monopoly. Think about the deregulation of the U.S. telecommunications industry that has occurred over the last few decades. (This is not a research assignment, but a thought assignment based on what you have learned in this chapter.)
In the middle of the twentieth century, major U.S. cities had multiple competing city bus companies. Today, there is usually only one and it runs as a subsidized, regulated monopoly. What do you suppose caused the change?
If a monopoly firm is earning profits, how much would you expect these profits to be diminished by entry in the long run?
Imagine a monopolist could charge a different price to every customer based on how much he or she were willing to pay. How would this affect monopoly profits?
In what sense is a natural monopoly natural?
What are some of the benefits of the deregulation?
What is the usual shape of a marginal revenue cuwe for a monopolist? Why?
How does the quantity produced and price charged by a monopolist compare to that of a perfectly competitive film?