Suppose the monopolist is able to practice first- degree price discrimination. Demand in this monopolist's market is given by the equation Q = 100 – 5P. The marginal cost is given as: MC = 2. || What is the price for the 10th unit purchased? Question 31 options: $18 $20 $90 $2 $50
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- Once a monopolist has determined its profit-maximizing (equilibrium) quantity of output, QM, which condition does it use to set the price? Question 9Answer a. None of the other options are correct b. Price = Demand at QM c. Price = Average Cost at QM d. Price = Marginal Cost at QMAll consumers are alike and each has an demand curve for a monopolist’s product of P=100-2Qd. The marginal cost of production is constant at MC = $10. Let the monopolist charge a price of $10 per unit purchased and a subscription fee of $2025 that must be paid by each purchaser. What is the amount of consumer’s surplus left over by this scheme?A monopolist book publisher with a constant marginal cost of 2 and no fixed costs sells novels in only two countries. Assume the inverse demand curve in country 1 is given by P1=10-2/3Qand the inverse demand curve in country 2 is given byPW=18-QAssuming book shipments across countries are banned so that price discrimination occurs. What is the equilibrium price and quantity of books sold by the monopolist in country 1?Options are: a)p=1, q=16b) p=1 q=12c) p=4, q=8d)p=6, q=6Continuing to assume price discrimination, what is the equilibrium price and quantity of books sold by the monopolist in country 2?a)p= 4,q=14b)p= 6,q=12c)p= 8,q=10d)p= 10,q=8If book imports are permitted in both countries so that price discrimination is impossible, what is the equilibrium price and quantity sold in the two countries combined?a)p=6,q=20b)p=7,q=20c)p=10,q=8d)p=12,q=6
- ASAP PLZ Suppose a monopolist knows it has two types of customers. The inverse demand for the customers in the first market is P = 50 – Q while the inverse demand for the customers in the second market is P = 40 – 2Q. The marginal cost is €10 in both markets. Suppose the firm wishes to charge a two-part tariff to its customers but it cannot distinguish between the customers in the first and second markets. Calculate the entry (fixed) fee that the firm should charge in these circumstancesAn industry produces its product, Scruffs, at a constant marginal cost of $50. The market demand for Scruffs is equal to Q = 75000 - 600P a. What is the value to a monopolist who is able to develop a patented process for producing Scruffs at a cost of only $45? b. If the industry producing Scruffs is purely competitive, what is the maximum benefit that an inventor of a process that will reduce the cost of producing Scruffs by $5 per unit can expect to receive by licensing her invention to the firms in the industry?Consider a monopolist with a demand equation P = 60 - 2Q, where P is the price in dollars and Q is the quantity. The monopolist is able to produce the output with a constant marginal cost of $20 which is equals to the average total cost. Assume that there is no fixed cost. A. If the monopolist practice single pricing, determine the price, quantity, profit, consumer surplus and producer surplus in this market with the aid of a suitable diagram. Appraise the efficiency in this market. B. If the monopolist were to practice perfect price discrimination, determine the quantity, profit, consumer surplus and producer surplus of the monopolist. Appraise the efficiency in this market. C. Consumers and the society are always worse off in a monopolised market compared to a perfectly competitive market. Do you agree? Examine the two (2) market structures and explain with the help of a suitable market diagram.
- A monopolist has constant marginal cost equal to 30 and faces a market demand curve given by the following p 100-2Q. If the monopolist is a perfect price discrimination monopolist its level of profit will be equal to (assume there is no fixed cost) A. 1225 B. 2450 C. 2275..... D. 1150Eyeglasslux is a single-price monopolist in the eye-glass frame market. It faces a Market demand given by Q=118-5P. Its only cost is a Marginal Cost of MC=Q. If the monopolist behaved like a perfectly competitive firm, what would the perfectly competitive market price be?Problem 2Suppose an airline has monopoly over a certain route. The estimated price elasticity of demand for business travelers is EB=-1.9, while the price elasticity of demand for leisure travelers is EV=-2.1. The airline wants to set the prices separately for business and vacation travelers.a) If the marginal cost of transporting each passenger is the same, and the airline is able to separate the two groups perfectly, what is the optimal surcharge (in %) on business travelers? (for example, if leisure travelers pay 100, and business travelers pay 200, then the surcharge is 100%)Answer= b) Suppose that in order to separate business travelers, the airline must offer them slightly better conditions on board (for example, serve them a meal). As a result, the marginal cost of flying a business traveler is 30% higher than for a leisure traveler. What is the optimal surcharge (in %) on business travelers in this case?Answer= c) Now suppose the airline introduces a Basic Economy fare, where…
- Johnson, Inc., a monopolist, produces a chemical at a constant marginal cost of $12. The chemical is sold in market A and market B where the demand functions are qA=120-pA, and qB=80-pB, respectively. a) If resale of the chemical between markets A and B is not feasible and price discrimination is allowed, compute the prices, the quantities sold, and Johnson’s Inc. profits at the industry equilibriumAssume a single-price monopolist has an inverse market demand curve given by P(Q)=300-0.5Q, and has a cost curve: C(Q)=125+20Q+0.5Q2. We already know that Monopolist will provide 140 units, Economic profit is 19475, and Economic Rent is 190. If the impact of a 35% ad valorem tax imposed on the consumers in the market. Then: Q1: What is the equilibrium quantity will be sold in the after-tax equilibrium? Q2: What are the economic rents of the monopolist?Please no written by hand and no emage Suppose that the monopolist sells its goods for two segments of the population and the demand -2 functions are given by Q₁ 120P₁² and Q₂ = 320P₂³. If the monopolist can produce at AC-MC-6 and can discriminate the prices what are the optimal prices, respectively? $6,$9 $9, $12 $12, $9 $9, $6 =
