EBK MICROECONOMICS
21st Edition
ISBN: 8220103960151
Author: McConnell
Publisher: YUZU
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Chapter 12, Problem 5RQ
To determine
Monopolist and price discrimination .
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The figure on the right shows the demand schedule for a product produced by a
single-price monopolist.
Price ($)
9
8
0000
7
6
5
4
3
C. 5th unit
Quantity
demanded
What is the lowest level of output at which marginal revenue becomes negative?
OA. 6th unit
OB. 9th unit
D. 7th unit
OE. 8th unit
5
6
7
8
9
10
11
Price ($)
141
222 =26=LO
13-
12-
11-
10-
9-
8-
4-
2-
1-
45 6 7 8 9 10 11 12 13 14 15 16
Quantity
E
The table presents the demand schedule and marginal costs facing a monopolist producer.
Fill in the total revenue and marginal revenue columns.
What is the profit-maximizing level of output?
What price will the monopolist charge for the quantity in part b?
Note:-
Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
Answer completely.
You will get up vote for sure.
Chapter 12 Solutions
EBK MICROECONOMICS
Ch. 12.4 - The MR curve lies below the demand curve in this...Ch. 12.4 - Prob. 2QQCh. 12.4 - Prob. 3QQCh. 12.4 - Prob. 4QQCh. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQ
Ch. 12 - Prob. 7DQCh. 12 - Prob. 8DQCh. 12 - Prob. 9DQCh. 12 - 10. LAST WORD Using Big Data to set personalized...Ch. 12 - Prob. 1RQCh. 12 - Prob. 2RQCh. 12 - Prob. 3RQCh. 12 - Prob. 4RQCh. 12 - Prob. 5RQCh. 12 - Prob. 6RQCh. 12 - Prob. 7RQCh. 12 - Prob. 1PCh. 12 - Prob. 2PCh. 12 - Prob. 3PCh. 12 - Prob. 4PCh. 12 - Prob. 5P
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- Table 15-20 A monopolist faces the following demand curve: Quantity Price 0 $30 1 $27 2 3 + $24 $21 $18 5 $15 6 7 8 0 $12 $9 $6 $3 10 $0 Refer to Table 15-20. If a monopolist faces a constant marginal cost of $5, how much output should the firm produce in order to maximize profit? O2 units 3 units 4 units 5 unitsarrow_forward6arrow_forwardof aboul $92,00 Exhibit 9-4: A Monopoly Total Quantity Total Fixed Variable Price Demanded Cost Cost $100 $20 $0 90 1 $20 20 80 $20 48 70 $20 78 60 4 $20 110 50 $20 150 Refer to Exhibit 9-4. At an output level of 3 units, the monopolist earns a total profits of about O $80.00 $92.00 O $112.00 O$110.00 2. 3. 5.arrow_forward
- Figure 15-6 Price Marginal Cost $20 15 10 Demand 100 150 200 Quantity Marginal Revenue Refer to Figure 15-6. To maximize its profit, a monopolist would • choose which of the following outcomes? O100 units of output and a price of $20 per unit 200 units of output and a price of $20 per unit 150 units of output and a price of $15 per unit 100 units of output and a price of $10 per unit « Previous Nextarrow_forwardSuppose that a monopolist faces linear demand given by Q(p)=90-3"p The monopolist also pays a marginal cost of $2 for each unit produced. What is the price that the monopolist will set to maximize its profits? O 16.5 O 15 O 16 O 15.5arrow_forwardExhibit 9-4: A Monopoly Total Quantity Total Fixed Variable Price Demanded Cost Cost $100 $30 $0 90 1 $30 20 80 $30 48 70 3 $30 78 60 $30 110 50 $30 150 Refer to Exhibit 9-4. At an output level of 4 units, the monopolist earns a total profits of about $70.00 O $100.00 O $82.00 $102.00arrow_forward
- А. What is the reason for a monopolist to practice price discrimination? Describe one form of price discrimination in which a monopolist produces the same output as a perfect competitive industry. Explain clearly why the monopolist does so instead of producing the same output as a single-price monopoly. В. С. Movie theaters charge a lower price for morning shows and a higher price for evening shows. With a clearly labeled figure, show and explain the form of price discrimination practiced by movie theaters.arrow_forward6. Suppose that De Beers is a single-price monopolist in the diamond market. De Beers has five potential customers: Raquel, Jackie, Joan, Mia, and Sophia. Each of these customers will buy at most one diamond and only if the price is just equal to, or lower than, her willingness to pay. Raquel's willingness to pay is $400; Jackie's, $300; Joan's, $200; Mia's, $100; and Sophia's, $0. De Beers's marginal cost per diamond is $100. The result is a demand schedule for diamonds as follows: Quantity of diamonds demanded 0 1 2 3 Price of diamond $500 400 300 200 100 0 a) Calculate De Beers's total revenue and its marginal revenue. From calculation, draw the demand curve and the marginal revenue curve. b) Explain why De Beers faces a downward-sloping demand curve and why the marginal revenue from an additional diamond sale is less than the price of the diamond. c) Suppose De Beers currently charges $200 for its diamonds. If it lowers the price to $100, how large is the price effect? How large is…arrow_forwardPlease please explain all subparts. I will really really upvote. Thanksarrow_forward
- Table 3 Quantity Price 1 2 3 4 2N 4567 7 8 9 10 O 10 O 17 14 35 O 15 29 23 17 8 Total revenue 35 64 120 99 80 Average revenue 32 11 Marginal revenue Refer to Table 3. What price would the monopolist charge in order to sell 8 units of the product? 29 17 11 -1 -7 -13arrow_forwardNote: don't use chat gpt.arrow_forward3. Consider a market in which a monopolist would charge at a price of $10 for a particular good. Assume now the market is currently dominated by a pair of Bertrand duopolists who produce identical goods and compete on price in a one-shot game. They both face a marginal cost of $5. They start with colluding and agreeing to charge the monopoly price of $10 in an effort to maximize their profits. In equilibrium, the market price of the good will be.... (a) Over $10 (b) $10 (c) Between $5 and $10 (d) $5 (e) Less than $5 (f) None of the above Answer: 3d. A price war will break out, lowering the price to $5.arrow_forward
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