As the manager of a monopoly, you face potential government regulation. Your inverse demand is P=40-2Q and your costs are C (Q) =8Q. Determine the socially efficient price and output.
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- As the manager of a monopoly, you face potential government regulation. Your inverse demand is P = 40 − 2Q, and your costs are C(Q) = 8Q. a. Determine the monopoly price and output. b. Determine the socially efficient price and output. c. What is the maximum amount your firm should be willing to spend on lobbying efforts to prevent the price from being regulated at the socially optimal level?As the manager of a monopoly, you face potential government regulation. Your inversedemand is P = 40 − 2Q, and your costs are C(Q) = 8Q. b. Determine the socially efficient price and output.The demand and total cost functions for a monopoly firm are: Q(P) = 39.5 – 0.5P TC(Q) = 60 – Q + 0.5 Q² What would be the socially optimal Q* and P* (round to 1 decimal place if needed
- As the manager of a monopoly, you face potential government regulation. Your inverse demand is P = 25 − 2Q, and your costs are C(Q) = 5Q. a. Determine the monopoly price and output. Monopoly price: $ Monopoly output: units b. Determine the socially efficient price and output. Socially efficient price: $ Socially efficient output: units c. What is the maximum amount your firm should be willing to spend on lobbying efforts to prevent the price from being regulated at the socially optimal level? $As the manager of a monopoly, you face potential government regulation. Your inverse demand is P = 50 - 1Q, and your costs are C(Q) = 18Q.a. Determine the monopoly price and output.Monopoly price: $___ Monopoly output units____b. Determine the socially efficient price and output.Socially efficient price: $____ Socially efficient output Units___c. What is the maximum amount your firm should be willing to spend on lobbying efforts to prevent the price from being regulated at the socially optimal level?$____A small monopoly manufacturer of widgets has a constant marginal cost of $10. The demand for this firm's widgets is Q=120−1P. Given the above information, compute the social cost of this firm's monopoly power
- The graph depicts market conditions for an unregulated, profit-maximizing monopolist that is unable to price discriminate. Assuming the market demand function is equivalent to marginal benefit, the socially efficient level of output in this market is 1000 units of output; deadweight loss is approximiately equal to $________ (since the MC function is not a straight line and deadweight loss is measured as the area of a triangle, it is an appoximation).A perfect price discriminating monopolist is able to Question 14 options: a) produce where the price of the last unit sold is equal to marginal cost b) maximize profit and capture all consumer surplus c) produce a socially optimal level of output commensurate to that of perfect competition d) all of the aboveEach consumer has the following demand for annual visits to a park is: Q = 100 - P, where Q is the number of visits to the park per year and P is the price per visit. In Kentucky, this particular park has a monopoly on the park market in the area. If the marginal cost of serving each customer is $10 per visit, what is the optimal two-part tariff that this park could charge each customer? Answer OptionsAnnual Fee = $4050; P= $10 for each visit Annual Fee = $4050; P= $0 for each visit Annual Fee = $5000; P= $10 for each visitAnnual Fee = $5000; P= $0 for each visit
- At a monopolist’s profit-maximizing level of output, what is the Total Revenue? At a monopolist’s profit-maximizing level of output, what is the Total Profit? At the socially optimal level of output, what is the Total Revenue? At the socially optimal level of output, what is the Total Profit?A monopolist knows there are two customers with different demand curves for two differently sized bags of potato chips. Customer S would only buy the small bag and has a willingness-to-pay given by P=160-2q (where P denotes the price and q denotes the quantity). Customer L would buy the large bag and has a willingness-to-pay given by P=200-q. The monopolist does not know who is customer S and who is customer L. Marginal cost of production is zero. BEFORE second degree price discrimination, how large are the bags?A monopolist knows there are two customers with different demand curves for two differently sized bags of potato chips. Customer S would only buy the small bag and has a willingness-to-pay given by P=160-2q (where P denotes the price and q denotes the quantity). Customer L would buy the large bag and has a willingness-to-pay given by P=200-q. The monopolist does not know who is customer S and who is customer L. Marginal cost of production is zero. BEFORE second degree price discrimination, and if the monopolist perfectly price discriminated the small bag, what is the price of the small bag?
