As per given information, the table is completed:-(In $)QuantityPriceTotalMarginalTotal CostMarginalRevenueRevenueCost34202013232323616230602846102884245044261042054424120165622213212647201408016818144410020161441282814140-416032(d) Generally, what are the relative values of price, ATC, and AVC when a monopolistexperiences:a profit?a loss but continues to produce?a loss but ceases production?10

Meaning of Monopoly: The term monopoly refers to the situation under which there is only an…

As per given information, the table is completed:- (In $) Quantity Price Total Marginal Total Cost Marginal Revenue Revenue Cost 34 20 1 32 32 32 36 16 2 30 60 28 46 10 3 28 84 24 50 4 4 26 104 20 54 4 24 120 16 56 2 6 22 132 12 64 8 7 20 140 8 80 16 8 18 144 4 100 20 9 16 144 128 28 10 14 140 -4 160 32 (d) Generally, what are the relative values of price, ATC, and AVC when a monopolist experiences: a profit? a loss but continues to produce? a loss but ceases production? 20

As per given information, the table is completed:- (In $) Quantity Price Total Marginal Total Cost Marginal Revenue Revenue Cost 34 20 1 32 32 32 36 16 2 30 60 28 46 10 3 28 84 24 50 4 4 26 104 20 54 4 24 120 16 56 2 6 22 132 12 64 8 7 20 140 8 80 16 8 18 144 4 100 20 9 16 144 128 28 10 14 140 -4 160 32 (d) Generally, what are the relative values of price, ATC, and AVC when a monopolist experiences: a profit? a loss but continues to produce? a loss but ceases production? 20

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter9: Monopoly

Section: Chapter Questions

Problem 21RQ: How can a monopolist identify the profit-maximizing level of output if it knows its marginal revenue...

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1. Based on the best available econometric estimates, the market elasticity of demand for your firmâ€™s product is -2.5. The marginal cost of producing the product is constant at $100, while average total cost at current production levels is $175. Determine your optimal per unit price if: Instruction:Round your answers to two decimal places. a. You are a monopolist. $ b. You compete against one other firm in a Cournot oligopoly. $ c. You compete against 19 other firms in a Cournot oligopoly. $ 2. You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Group 1â€™s elasticity of demand is -2, while group 2â€™s is -6. Your marginal cost of producing the product is $10. a. Determine your optimal markups and prices under third-degree price discrimination. Instruction:Round your answers to two decimal places. Markup for group 1: Price for group 1: $ Markup for group 2: Price for group…
Marginal Analysis II Question 3 Assume that a monopolist faces a demand curve for its product given by: p=100−1qp=100-1q Further assume that the firm's cost function is: TC=470+9qTC=470+9q Using calculus and formulas (don't just build a table in a spreadsheet as in the previous lesson) to find a solution, what is the profit (rounded to the nearest integer) for the firm at the optimal price and quantity? Round the optimal quantity to the nearest hundredth before computing the optimal price, which you should then round to the nearest cent. Note: Non-integer quantities may make sense when each unit of q represents a bundle of many individual items. Hint 1: Define a formula for Total Revenue using the demand curve equation. Then take the derivative of the Total Revenue and Total Cost formulas to compute the Marginal Revenue and Marginal Cost formulas, respectively. Use these Marginal Revenue and Marginal Cost formulas to perform a marginal analysis. Hint 2: When computing the total…
1. Based on the best available econometric forecasts, market elasticity demand for your company's products is -2.5. Marginal cost to produce product is constant at $ 140. Determine the optimal price per unit, if: a.You are a monopolist. b.You compete with one another in the Cournot oligopoly. c.You are competing with 9 other companies in the Cournot oligopoly. 2. The water pump company has succeeded in introducing a water pump that saves electricity, is easy to install, and is durable (guaranteed). Its high quality has given the company an early edge in the local and national markets, but the entry of highly skilled competitors may occur within the next 3 years. Assume that the income and expense relationship of the company is as follows: TR = 22000Q - 15.6Q2 MR = dTR / dQ = 22000 - 31.2Q TC = 300000 + 4640Q + 10Q2 MC = dTC / dQ = 4640 + 20Q Where TR is income (in thousands of rupiah), Q is quantity (in units), MR is marginal income (in thousands of rupiah), TC is total cost,…
Question 2: The diagram below shows a monopolist’s MC and ATC curves as well as the industry demand and MR curves. Diagram attached in images. Remaining question 4. Now suppose the industry' is made up of many small, price-taking firms (with the same technology). What are the equilibrium price and level of output in this case? Answer: 5. Identify and explain minimum efficient scale in the above graph. Answer:
Question :- A monopolist faces an inverse demand curve given by P= 800 - 2Q and a cost curve given by C(Q)= 40Q + 3Q2. If this firm practices 1st degree price discrimination, it will earn _______ in surplus. Select one: a. $36,100 b. None of these. c. $28,880 d. $0
5. Conditions for price discrimination Price discrimination is the practice of charging different prices for the same product that are not justified by cost differences. Evaluate the following statement: "Price discrimination requires market segmentation." False, because the monopolist can never charge anyone their maximum willingness to pay anyway False, because the monopolist does not need to know people's willingness to pay for its goods None of these choices True, because the monopolist needs to know the willingness to pay of different groups of consumers
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27. Price discrimination creates economic inefficiency. False True True, if the firm is a monopolist, otherwise false. True, if the firm is perfect competitor, otherwise false.
9-6 Explain why a firm with market power might decide to charge different groups different prices8. (Conditions for Price Discrimination) List three conditions that must be met for a monopolist to price discriminate successfully.