Need answers to all questions a(n)producer surplus with a monopoly.a) lowerb) higherc) unchangedCao Rerer to your answer to Question Q11, Compared to pure competition, society faces a(n)total surplus with a monopoly.a) lowerb) higherc) unchangedQ19 When a firm spends resources in an attempt to transfer income from consumers to themselves, wesay that the firm exhibits:a) simultaneous consumptionb) network effectc) X-inefficiencyd) rent-seeking behaviorQ20 X-inefficiency is more likely to occur within a monopoly rather than a purely competitive firm since:a) creative destruction would remove purely competitive firm if operating inefficientlyb) monopolists have less access to technological advancec) highly productive managers prefer working in a competitive firmd) monopolists tend to have more secure supply chainsQ21 Barriers to entry:a) usually result in pure competitionb) can result from government regulationc) exist in economic theory but not in the real worldd) are typically the result of wrongdoing on the part of a firmQ22 A price-discriminating monopolist will follow a system where:a) Buyers with inelastic demand are charged higher prices than buyers with elastic demandb) Buyers with inelastic demand are charged lower prices than buyers with elastic demandc) All buyers are charged the same price regardless of their elasticity of demandd) The price of the product is held the same even if the demand changes *Use the graph below to answer Questions Q23 through Q26.Graph BS70S65MC$60$55$50$45ATOS40$35$30S25S20$15S10S5MRSO0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 4042 44 46 48 50Output QuantityQ23 What quantity would the monopolist sell? Hint: Slide 8a) 10b) 16c) 18d) 24Q24 What price will the monopolist charge? Hint: Slide 8a) $70b) $50c) $30d) $25Q25 What is this monopolist's economic profit? Hint: Slides 9 through 11.a) -$80b) $0c) $240d) $320e) $400Q26 What would happen in the long run?a) Monopolist would exit marketb) Entrepreneurs would enter marketc) Neither of the above.Q27 Suppose the government regulates the monopoly. What is the "socially optimal" price?Hint: Slide 22a) $40b) $33c) $30d) $25

Since you have posted multiple Questions as per the guidelines we can solve only the first 3…

antity Q23 What quantity would the monopolist sell? Hint: Slide 8 a) 10 b) 16 c) 18 d) 24 Q24 What price will the monopolist charge? Hint: Slide 8 a) $70 b) $50 c) $30 d) $25 Q25 What is this monopolist's economic profit? Hint: Slides 9 through 11. a) -$80 b) $0 c) $240 d) $320 el $400

antity Q23 What quantity would the monopolist sell? Hint: Slide 8 a) 10 b) 16 c) 18 d) 24 Q24 What price will the monopolist charge? Hint: Slide 8 a) $70 b) $50 c) $30 d) $25 Q25 What is this monopolist's economic profit? Hint: Slides 9 through 11. a) -$80 b) $0 c) $240 d) $320 el $400

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

Chapter13: best-practice Tactics: Game Theory

Section: Chapter Questions

Problem 1E

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As a manager of a music venue (assume a monopoly market), you have noticed much higher demand on weekends than during the week. You therefore conducted a study that has revealed two different demand curves at your theater. On weekends, the inverse demand function is P = 24 − 0.0005Q; on weekdays, it is P = 20 − 0.0025Q. Each night you hire an act to play costs about $75,000 for the band, and about $5.00 per person (staff, food, drinks). Devise a pricing strategy to maximize your firm's profits.
As distinct from pure monopoly, industrial concentration is said to exist whenever: Select one: a) the product price in an industry exceeds marginal cost in the long run b) there is X-inefficiency c) a unique product is produced by a single firm d) firms in an industry recieve above-normal profits in the short run e) a single firm or a small number of firms control all, or a major portion of, the output of a particular industry
Give only typing answer with explanation and conclusion The market demand for a monopoly firm is estimated to be: Qd = 100,000 - 500P + 2M + 500PR where Qd is quantity demanded, P is price, M is income, and PR is the price of a related good. The manager has forecasted the values of M and PR will be $50,000 and $20, respectively, in 2016. The average variable cost function is estimated to be AVC = 520 - 0.03Q + 0.000001Q2 Total fixed cost in 2016 is expected to be $4 million. The profit-maximizing price for 2016 is $80. $100. $260. $520. $560.
OC makes and sells an executive game for two distinct markets in which it currently has a monopoly. The fixed costs of production per month are $20,000, and variable costs per unit produced, and sold, are $40. The monthly sales can be thought of as X, where X = X1 + X2, with X1 and X2 denoting monthly sales in their respective markets. Detailed market research has revealed the demand functions in the markets to be as follows, with prices shown as P1 and P2: Market 1: P1 = 55 - 0.05X1 Market 2: P2 = 200 - 0.2X2 The management accountant believes there should be price discrimination; the price is currently $50 per game in either market. Required: a) What is the optimum price to charge in Market 1? b) What is the optimum quantity to produce in Market 2? c) The following statements have been made about price discrimination: 1) Price discrimination should be used if a business wishes to discourage new entrants into a market. 2) Price discrimination can be difficult to implement in…
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The demand for home firm product is given by the inverse demand function: P = 120 −QD. The company’s costs are: T C = 20Q+ 200 and MC = $20.2. Suppose the home country open up to free trade and a foreign competitor enters the market. Assume thatthe foreign firm has the same cost structure as the home firm (the monopoly from the previous question).A) Derive the best response function for each firm (h-home and f-foreign)B) Find each firms’ output, the home market price, and each firms’ profit from the home market
A natural monopoly is most likely to occur in which of the following industries? Group of answer choices a. the pharmaceutical industry because the development and approval of new drugs through the Food and Drug Administration can take more than 10 years b. the diamond mining and marketing industry because one firm can control a key resource c. the software industry because of the importance of network externalities d. an industry where fixed costs are very large relative to variable costs
Which of the following situations would likely result in the formation of a natural monopoly? Question 21Select one or more: a. There is very low demand for the product, i.e., there’s a small market b. Firms have large fixed costs and a constant marginal cost of production c. Due to return to scale, one large firm can produce at a lower cost than many small firms d. The government issues liquor licenses, which are required for businesses to sell alcohol e. Doctors can only practice medicine if they are accredited by the American Medical Association f. The government issues a patent for a new invention
Q1-Select the true or false for the following statement also give the explanation and support your answer with graphical presentation where necessary. Explanation is compulsory 3 to 6 line. The key difference between a competitive firm and a monopoly is the ability to influence the price.
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Yongling is a monopoly seller of a good in a town. She has a fixed supply of 8 units and no other costs. The market demand curve for the product is P = 20–q. What is her profit if she sells to all her clients at the same price? Group of answer choices $24 $36 $72 $48 $96
You are the manager of a monopoly and your cost function is C(Q) =2Q. You need to determine the optimal level of output for your firm, but the demand for your firm’s product will depend on whether or not a new tax law is passed. If passed, the new tax law will reduce income taxes and increase consumers’ disposable income. Politicians have determined that there is a 70% chance that the tax law will be passed and a 30% chance that will not. If the tax law is passed, the demand for your firm’s product will be: Q = 100 – 2P If the tax law is not passed, the demand for your firm’s product will be: Q = 75 – 3P How much output should you produce to maximize expected profits? q=45 What is the expected price for your product? (Round to one decimal place) What are your anticipated profits? (Round to the nearest whole number)