A pure monopoly sells 6 units of a product per day at a unit price of $15. If it lowers the price to $14, its total revenue increases by $22. This implies that its sold output increases by _____. rev: 05_15_2018
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- Enrodes is a monopoly provider of residential electricity in a region of northern Michigan. Total demand by its 4 million households is Qd = 1,200 − 1P, and Enrodes can produce electricity at a constant marginal cost of $4 per megawatt hour. Consumers in this region of Michigan have recently complained that Enrodes is charging too much for its services. In fact, a few consumers are so upset that they’re trying to form a coalition to lobby the local government to regulate the price Enrodes charges. If all the consumers of this region joined the coalition against Enrodes, how much would each consumer be willing to spend to lobby the local government to regulate Enrodes’s price? Instructions: Enter your response rounded to the nearest penny (two decimal places). $ ___________Consider a natural monopoly with large fixed costs and a constant marginal cost of production, such as supplying water to household. Which condition can be used to regulate such a natural monopoly to ensure that the firm continues to operate while maximizing consumer surplus? Question 23Answer a. Demand = Average Cost b. Demand = Marginal Cost c. Marginal Cost = Marginal Revenue d. Price = Marginal Cost e. Price = Marginal RevenueEnrodes is a monopoly provider of residential electricity in a region of northern Michigan. Total demand by its 3 million households is Qd = 1,500 − 2P, and Enrodes can produce electricity at a constant marginal cost of $4 per megawatt-hour. Consumers in this region of Michigan have recently complained that Enrodes is charging too much for its services. In fact, a few consumers are so upset that they are trying to form a coalition to lobby the local government to regulate the price Enrodes charges. If all the consumers of this region joined the coalition against Enrodes, how much would each consumer be willing to spend to lobby the local government to regulate Enrodes’s price? Do you think the consumers will be successful in their efforts? Explain.
- Discuss in detail the equilibrium of a firm under monopoly.Q. 3. What do you mean by simple linear regression line. Estimate, Y , given thefollowing data:-Demand 3 4 5 6 7 9 8 10 12 14Price 16 13 10 7 7 5 4 3 4 2Q37 A monopoly is distinguished from a firm operating under any other market structure in that the monopoly... a. Faces a demand curve which is identical to the market demand curve. b. Charges a price higher than its average revenue. c. Can choose its level of cost. d. Can choose its output level. e. Does not produce at a profit-maximizing level of output.Explain why a computer store offering significant student discounts may require student buyers to sign an agreement not to purchase another computer from the store for a period of six months.- Monopoly Chapter
- Draw the demand curve, marginal revenue, and marginal cost curves from Figure : , and identify the quantity of output the monopoly wishes to supply and the price it will charge. Suppose the demand for the monopoly’s product increases dramatically. Draw the new demand curve. 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. What do you think about the result? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.The average cost for a typical electric-power-production firm is AC = 100 - 10Q + Q2 where Q is measured in billion kilowatt hours per day. At the current regulated price, consumers demand 4 billion kilowatt hours per day. Is this market a natural monopoly? If demand increases to 10 billion kilowatt hours, is this market a natural monopoly? Explain.H11. Assume a firm in a competitive market is outputting 500 units and sells each unit for 4 dollars. The average total cost is 3 dollars. What is the total profit? Suppose when a monopoly charges 5 dollars, it sells 2 units of output. When it charges 4 dollars it sells 3 units of output. What is the Marginal Revenue of the 4th output?
- Under patent protection, a firm has a monopoly in its production. Market demand is estimated to be P = 600 – 0.3Q. The firm’s economic costs are given by ATC = MC = $60 per unit. Determine the firm’s optimal output, price and economic profit After the firm’s patent expires, predict the new market output and price under perfect competition. Assume that competing suppliers have the same economic costs as the original producer. What is the new market price, quantity, and total industry profit? Compute the resulting change in consumer surplus Compute the resulting change in producer surplus.The cost function for producing ethanol from municipal waste (wastehol) is 1000+10q2 where q is in millions/gallons per year. The demand for wastehol is currently perfectly inelastic at 5 million gallons per year. Assume that producers of wastehol are perfectly competitive. California is deciding whether to convert all wastehol producers into a regulated wastehol utility. If wastehol is a regulated monopoly utility with the cost function above, what price would regulators set as the price of wastehol? Now assume that the wasteahol market has boomed and demand has grown to 20 (again million gallons per year). Now what is the regulated price of wastehol? You are the wastehol producer and are trying to decide whther to lobby for deregulating the wastehol industry. If wastehol were deregulated, if demand remains 20, what would the perfectly competitive price be? If you are a wastehol customer, you would prefer a deregulated industry if demand were 20? True/False?Figure 15-16 shows the market demand and cost curves facing a natural monopoly.Refer to Figure 15-16. Suppose the government regulates this industry in order to remove the inefficiency implied by the behavior of the profit maximizing owners. If regulators require that the firm produces the economically efficient output level, what is this level and what price will be charged? Q3 units; P3 Q1 units; P1 Q4 units; P4 Q1 units; P4 Suivant