For the single-price monopolist illustrated in figure below has a total cost of: Price and costs (dollars per unit) 10 8 6 4 2 0 2 4 MR 6 MC 8 D 10 ATC AVC 12
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- Eyeglasslux is a single-price monopolist in the eye-glass frame market. It faces a Market demand given by Q=355-2P. Its only cost is a Marginal Cost of MC=Q What is the Marginal Revenue for the 268th unit?Norah Jones’ (famous for the songs “Come Away With Me” and “Don’t Know Why”) last national concert tour sold an average of 2/3 of the tickets available, with 1/3 of seats left empty at a typical concert. (A.) Suppose the local promoter of each concert is a monopolist with a fixed number of seats in each concert hall. The promoter’s cost is independent of the number of people who attend the concert (Norah Jones received a flat payment independent of the number of tickets sold). If the concert charges a single market price, what factors would be considered in determining the profit maximizing price? (B.) Does the failure to sell out a concert suggest that the concert venue set too high a price? Does the failure to sell out a concert imply that there is deadweight loss? Explain. (C.) How (if at all) does the size of Norah Jones’ flat payment influence the profit maximizing price? Explain. (D.) How would your answers change if the concert hall is able to perfectly* price discriminate…For a monopolist's product, the cost function is c= 0.004g + 20q + 6000 and the demand function is p= 450 – 4q. Find the profit-maximizing output. The profit-maximizing output is (Round to the nearest whole number as needed.)
- (1) A monopolist is forced to lower its price in order to sell another unit of its product. This describes the problem of A-persistent economic profits. B-market power. C-diseconomies of scale D-economies of scale. E-market discrimination (2)Koel is the single producer of home air conditioners in its rural market. The firm's monthly demand is described by the equation P = 5000 − 5Q, where P is the price and Q is the quantity of units sold. Which of the following must be true of Koel? A-An increase in price decreases the quantity sold. B-It is a natural monopoly. C-A decrease in price decreases the quantity sold. D-Higher levels of output bring in increasingly lower total revenue if demand is elastic. E-Maintaining the current price decreases the quantity sold over time. (3)Nori is a firm that sells products in an industry with a very high concentration of sellers. Nori's production decisions must consider its competitors' possible production decisions. In which market must…a profit-maximizing monopolist faces the demand curve q=200-5p. it produces at a constant marginal cost of $10 per unit. a quantity tax of $10 per unit is imposed on the monopolist's product which the monopolist should pay. the price of the monopolist's product after the tax. hint: since the conopolist will pay the tax, it increases its cost. you must write the correct cost function to solve the problem.Please include step by step working and derivation of any methods in the following question: 1. (a) A monopolist has discovered that the inverse demand function of a person with income Y for the monopolist’s product is P = 0.002Y-Q where P is the price, Y the income, and Q is the output. The monopolist can observe the incomes of its consumers and hence vary its price accordingly. The monopolist has a total cost function C(Q) = 100Q. Calculate the profit maximising price as a function of the consumer’s income Y carefully explaining all the steps in the derivation of the formula. (b) A monopolist has a constant marginal cost of £2 per unit and no fixed costs. He faces two separate markets in the United States and in the UK. The goods sold in one market are never resold in the other. He sets one price P1 for the US market and another price P2 for the UK market (both measured in £). The demand in the United States is given by Q1=7,000-700P1 and the demand in the UK is given by…
- Hand written solutions and AI solutions are strictly prohibitedAssume inverse demand function for game console in an imaginary country is P=1200-4Q and the total cost function is TC=400+4Q2. Government put $120 of specific tax on production. If the market is competitive what is the incidence of tax on consumer? If the market is monopolist what is the incidence of tax on consumer?Q18 Marginal revenue is less than price for a single-price monopolist because it... a. Charges a price higher than the unit production cost. b. Must worry about how its price setting will lead to entry by other firms. c. Must lower its price for all units if it wants to sell more of the product. d. Does not affect the selling price through its output decisions. e. Has achieved economies of scale.
- Give answer with proper explanation and calculation. Hand written solutions are strictly prohibitedSITUATION: You are thinking about becoming a Paradise Coffee franchisee. Franchisees are offered a business specializing in producing an exclusive line of exotic coffee drinks (similar to Starbucks). Franchisees have had good success in towns without a Starbucks (Paradise franchises gross $220,000 sales on average per year, and you believe you can gross as much, too). You will have to pay Paradise Coffee, Inc., a franchise fee of $3,000 a year plus 2.5% of gross sales. You will also pay an annual National advertising fee of 3% of gross sales. Paradise requires that you use their logo-imprinted goods (plates, cups, napkins). They are purchased in bulk from Paradise and will cost you $40,000 per year. You also have to use their special Paradise Roast coffee beans, which cost $12.00 per pound. You estimate you will use 400 pounds of beans a year. Other food ingredients (syrups, biscotti, whipped cream, soft drinks, etc) will cost $18,000 a year. You will have to hire three…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.