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- Consider the relationship between monopoly pricing and the price elasticity of demand.Suppose a monopoly's price elasticity of demand equals -2 and the marginal cost of production equals $400.00. The profit-maximizing price is $ - (Enter a numeric response using a real number rounded to two decimal places.) What will be the firm's markup? When maximizing profit, the monopoly's markup is percent. (Round your response to the nearest percent.) tv 20 MacBook Air DII 80 F7 F4 F3 F2 & @ %23 3 4 7 9 { W E R T Y 一 P F G H J K > C V command op nd ...- * C0 BSuppose a monopoly's price elasticity of demand equals -2 and the marginal cost of production equals $400.00. The profit-maximizing price is $ (Enter a numeric response using a real number rounded to two decimal places., What will be the firm's markup? When maximizing profit, the monopoly's markup is percent. (Round your response to the nearest percent.) 20 Mact 80 F1 F2 F3 F4 F5 F6 F7 @ 23 $ & 1 3 4 7 8 Q W E R Y
- If the market demand is given by Q = 20 - P and the marginal cost is constant at 8, what is the profit - maximizing monopoly price and output? What is the price elasticity at the monopoly price and output?The inverse demand curve a monopoly faces is -1/2 p= 20Q The firm's cost curve is C(Q) = 4Q. What is the profit-maximizing solution? (Round all numeric to two decimal places.) The profit-maximizing quantity is. The profit-maximizing price is $ What is the firm's economic profit? The firm earns a profit of $ . (Round your response to two decimal places.) 20 tv MacBook Air 80 DII F2 F3 F5 F7 F8 F9 F10 # 2$ & 2 з 4 6 7 W E R Y P S F G H J K > C V N nd command * 00 BGraphically show a monopoly firm that currently sells 250 units of output at a price of $60/unit, where the marginal revenue of the 250th unit is $40, the marginal cost of the 250th unit is $50, and the average total cost at 250 units is $60. [Hint: Based on the information given, is the quantity you’re asked to show the profit-maximizing quantity? Think about what has to be true for profit-maximization.] Based on the graph and assuming the firm attempts to profit maximize (and succeeds), what would happen to price, quantity, MR, MC, and ATC? (rise, fall, or stay the same?)
- You are a consultant who is advising a monopoly on the optimal pricing strategy. Your analysis has yielded the following information. • The marginal cost (MC) is $3. • The demand equation is P = 90 - 3Q . The total cost (TC) is given by 35+ 3Q The marginal revenue (MR) is given by 90 - 6Q Based on this information, answer the following questions. Show FULL calculations! (a) Following the concepts of profit maximization, what is the profit maximizing quantity for this monopoly? (b) Following the concepts of profit maximization, what is the profit maximizing price for this monopoly? (c) Following the concepts of profit maximization, what is the monopoly's profit at the profit maximization point?Suppose a monopoly's price elasticity of demand equals-5 and the marginal cost of production equals $500.00. The profit-maximizing price is $ 625 (Enter a numeric response using a real number rounded to two decimal places.) What will be the firm's markup? When maximizing profit, the monopoly's markup is______percent. (Round your response to the nearest percent.)What economic formula or graph does the Anti-Trust Department follow before they decide to break up a monopoly? Multiple Choice They look to see if MC=MR is beyond $10 billion. They try to calculate if price elasticity is less than .25 and inelastic. They do not use any commonly known formulas or graphs. Often times it is based on normative economics and/or it could be politically motivated. The number of registered consumer complaints must be beyond 10,000.
- Price and cost (dollars per subscription) 64.00 58.00 48.40 40.00 MR MC ATC D 32 80 Quantity of cable subscriptions (per month in thousands) QThe table below shows cost data for producing different amounts of cleaning products. Suppose this market is a monopoly. Use the information in the table to find the output where the monopoly would maximize profit. Price ($) Quantity Total Revenue ($) Total Cost ($) 150 0 0 100 120 5 600 180 100 10 1000 400 90 15 1350 675 80 20 1600 1120 70 25 1750 1750 Profit maximizing quantity: What is the profit the monopoly achieved? $Question 5: Jimmy has a room that overlooks, from some distance, a major league baseball stadium. He decides to rent a telescope for $50 a week and charge his friends and classmates to use it to peep at the game for 30 seconds. He can act as a monopolist for renting out "peeps". For each person who takes a 30 second peep, it costs Jimmy $.20 to clean the eyepiece. Jimmy believes he has the following demand for his service: Price of a Peep $1.20 Quantity of peeps demanded 1.00 90 100 150 200 250 300 70 60 50 350 40 30 400 450 20 10 500 550 a) For each price, calculate the total revenue from selling peeps and themarginal revenue per peep. Price Quantity TR MR $1.20 100 90 100 150 200 70 250 60 300 350 50 40 30 400 450 20 500 10 550 b) At what quantity will Jimmy's profit be maximized? What price will he charge? What will his total profit be? c) Jimmy's landlady complains about all the visitors coming into the building and tells Jimmy to stop selling peeps. Jimmy discovers, though, if he…
