An agricultural seed company has an inverse demand given by: P = 120 - 2Q, and a cost function given by: C(Q) = 20Q. The monopoly profit level is: 3300 3600 1250 O 2500
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A: TRs = 45Qs - 2Qs2Now,MR=dTRsdQ=45-4QsMC=5
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- 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.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_2018The 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?
- Under patent protection, a firm has a monopoly in its production. Market demand is estimated to be P = 400 – 0.2Q. The firm’s economic costs are given by ATC = MC = $80 per unit. 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?Under patent protection, a firm has a monopoly in its production. Market demand is estimated to be P = 400 – 0.2Q. The firm’s economic costs are given by ATC = MC = $80 per unit. Determine the firm’s optimal output, price and economic profit.Assume that a monopolist faces a demand curve for its product given by: p=130−3q Further assume that the firm's cost function is: TC=490+10q What is the profit for the firm at the optimal quantity and price?
- 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 2Assume a monopolist produces rum and knows there are two groups of rum consumers, 1 and 2, with different price elasticities. Group 1 is highly price elastic with E1=-10; Group 2 exhibits a lower price elasticity of E2=-2.5. Assume the company can separate these two groups (e.g., by handing out special ID cards) and can charge two different prices. If P2=$14, how much can it charge to Group 1?Consider a mature maket with a demand given by P=105.4-10Q The cost of production is given by C=10Q For many years this market has been served by a monopolist. How much profit would the firm lose if it is forced to behave as a competitive firm In all your calculations use numbers with 4 decimal places.
- Suppose a discriminating monopolist is selling a product in four separate markets in which demand functions are: Q1 = 300 – P1; Q2 = 200 – 0.5 P2; Q3 = 150 – 0.4P3 and Q4 = 75 – 0.25P4. Assume further that the total cost of the firm is given as TC = 61,000 – 100Q. As an economic adviser you are required to determine: a. The prices to be charged in the four markets and the amount of output to be sold in each market so that total profits can be maximized. b. Calculate the total profit to be made from the strategy of price discrimination. c. Elasticities in each market and comment.At these levels of output the marginal revenue in the manufactured items market is and the marginal revenue in the semimanufactured raw materials market is . At these prices, the price elasticity of demand in the manufactured items market is and the the price elasticity of demand in the semimanufactured raw materials market is . (Hint: ED=PMR−P��=�MR−�) What are the total profits if the company is effectively able to charge different prices in the two markets? . If the company is required by law to charge the same per-ton rate to all users, the new profit-maximizing level of price and output are per ton and tons respectively. The total profits in this situation is .Assume that a monopolist sells a product with a total cost function: TC = 1200+0.5Q2. The market demand curve is given by the equation: Q=300-P For what range of output will the firm's revenue be increasing? For this monopolist, the profit-maximizing price is _________, at which it will sell __________ units of output. At this price, the monopoly will earn profit equal to ____________ . If this market were supplied by many firms with the same cost function, how much would be produced? _____________ At what price would it be sold? ______________ Calculate the loss in efficiency in this market due to the monopoly _____________
