If the inverse demand curve a monopoly faces is p = 100 - 2Q, MC is constant at 16, and the government imposes an $8 per unit specific tax on the monopoly, the deadweight loss due to both the monopoly and the tax is A) $441. B) $1764. C) $1332. D) $529.
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- The Spacing Guild has a monopoly on space transport. They sell tickets(Q) for seats on starships for interstellar travel at a per-ticket price of P. Alltickets cost the same. The Marginal Cost for each seat is $22 and there are no other costs.Market demand is Q=472-5P. What is the (absolute) deadweight loss from having the Guild be the soleproducer in the interstellar space travel market?A monopoly can sell 20 units of output for $18 per unit. Alternatively it can sell 21 units of output for $16 per unit. The marginal revenue of the 21st unit of output is... [If the answer is negative, please include the minus sign in your answer]A natural monopoly arises when the firm’s technology has economies of scale large enough for it to supply some of the market at a lower average total production cost than is possible with more than one firm in the market. Select one: True False
- Assume a monopoly firm is considering the production of two brands, 1 and 2. Marginal cost is constant at 20 for both products -- assume no fixed costs. The inverse demand for brand i is pi=140−qi−dqj , where i≠j and d is a constant. Part b) Find the firm's pricesAssume the definition of deductible elasticity that gives non-negative figures for normal demand. A monopoly that maximizes profit adapts so that the deductible elasticity is 2 and the price is NOK 500.What must then be the marginal costs of the monopoly? (Answers in whole kroner.)Assume a monopoly has two groups of customers, and each group of customers has different demand for the firm's product. Group A's demand is: Pa = 90 - .1qa where qa is group A's quantity demanded and Pa is the commodity's price in dollars for group A customers. Group B's demand is: Pb = 170 - .2qb where qb is group B's quantity demanded and Pb is the commodity's price in dollars for group B customers. The firm's total cost curve is: TC = 30,000 + .05q2 where TC is the firm's total cost in dollars and q is the total quantity of output produced by the firm. Based upon the above equations, answer the following questions: a. What quantity of the commodity would the firm sell to customers in group B? What price would the firm establish for customers in group B? b. What quantity of the commodity would the firm sell to customers in group A? What price would the firm establish for customers in group A?
- Can you help with parts d,e, and f please? Assume the following equations describe the conditions for a monopoly: Qd = 2,000 - 100P TC = 3,500 + 5q + .005q2 Where Qd is the quantity demanded, P is the commodity's price in dollars, TC is the firm's total cost in dollars and q is the quantity of output produced. Based upon these equations, answer the following questions:a. What is the firm's equation for total revenue expressed as a function of quantity? b. What is the firm's equation for marginal revenue expressed as a function of quantity? What is the firm's equation for marginal cost expressed as a function of quantity? c. What is the firm's profit maximizing quantity of output? d. What price will the firm charge for the commodity? e. What would be the socially optimal quantity of output? f. What price would regulators have to establish in order to have the firm produce the socially optimal quantity of output?Determine and compare the amount of consumer surplus and producer surplus if the service is provided by competitive firms and by the monopolist.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? $
- Consider a single-price monopoly. The government is considering to impose 10% tax on its profits. After the tax, the deadweight loss in this market will increase. True FalseA monopoly firm has estimated the own price elasticity of their market to be Q,P= -14.5at the quantity Q = 30 and price P = $169. If the monopolist cost function is given by: C(Q) = 25 + 11Q + 3Q2 a. How should this firm be managed? b. How much output will be supplied to the market and what price will be charged?For a monopoly firm, the demand equation is P = 10 –3Q, marginal revenue is MR = 18 - 4Q, marginal cost is MC = 2Q. a) The profit maximizing quantity is ___ units. b) The profit maximizing price is $___ per unit.