Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter 9, Problem 1SQ
To determine
The demand curve of the monopolist.
Expert Solution & Answer
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Answer parts a-c plz
total cost= 100+2q2
marginal cost = 4q
market demand curve = 90-2q
monopolist’s marginal revenue curve = 90-4q
Part a) What is the quantity, profit, and price of the monopoly?
Part b) Assuming a competetive industry, what is quanity, price, and profit? (P=MC can be used for perfect competition)
Part c) What is the price elasticity of demand at the monopoly price and quantity? What does this mean in context?
Demand: P=120-Q Total Cost: TC=Q2
Marginal Revenue: MR=120-2Q Marginal Cost: MC=2Q
For this monopolist, the profit-maximizing price is ________ and the profit-maximizing quantity is _________.
A 40, 80
B 90, 30
C 20, 80
D None of these answers
Question 12
A monopolist faces the demand curve P=120-Q. The monopolist’s marginal cost and marginal revenue curves are represented by MC=2Q and MR=120-2Q, respectively. What is the deadweight loss due to monopoly?
30
200
300
150
Chapter 9 Solutions
Micro Economics For Today
Ch. 9.1 - Prob. 1GECh. 9.1 - Prob. 2GECh. 9.2 - Prob. 1YTECh. 9.4 - Prob. 1YTECh. 9 - Prob. 1SQPCh. 9 - Prob. 2SQPCh. 9 - Prob. 3SQPCh. 9 - Prob. 4SQPCh. 9 - Prob. 5SQPCh. 9 - Prob. 6SQP
Ch. 9 - Prob. 7SQPCh. 9 - Prob. 8SQPCh. 9 - Prob. 9SQPCh. 9 - Prob. 10SQPCh. 9 - Prob. 11SQPCh. 9 - Prob. 12SQPCh. 9 - Prob. 13SQPCh. 9 - Prob. 1SQCh. 9 - Prob. 2SQCh. 9 - Prob. 3SQCh. 9 - Prob. 4SQCh. 9 - Prob. 5SQCh. 9 - Prob. 6SQCh. 9 - Prob. 7SQCh. 9 - Prob. 8SQCh. 9 - Prob. 9SQCh. 9 - Prob. 10SQCh. 9 - Prob. 11SQCh. 9 - Prob. 12SQCh. 9 - Prob. 13SQCh. 9 - Prob. 14SQCh. 9 - Prob. 15SQCh. 9 - Prob. 16SQCh. 9 - Prob. 17SQCh. 9 - Prob. 18SQCh. 9 - Prob. 19SQCh. 9 - Prob. 20SQ
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- A monopolist facing a u-shaped marginal cost curve chooses a price that I) minimizes marginal costs II) maximizes revenue III) maximizes profits A. I B. II C. III D. I and II E. II and III F. I and III 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.arrow_forwardThe 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?arrow_forwardSuppose a monopolist is currently producing where its variable costs are $1 million. Its fixed costs are $1.5 million. Its revenues are $1.2 million. Should the firm shut down in the short run? Should it leave the industry in the long run? a no; yes b no; no c yes; yes d yes; noarrow_forward
- 4. The ratio between price and marginal cost p/MC is largest when demand is very elastic at the price that maximizes the monopolist’s profits. Hint: very elastic demand = the elasticity is negative number that is large in magnitude.(a) True. (b) False.arrow_forwardA monopolist with total cost 500 - 100Q + 3Q2 and marginal cost MC = 6Q - 100 faces average revenue (demand) P = 2,000 - 2Q and hence marginal revenue MR = 2000 - 4Q. Calculate: (a) the quantity that the monopolist will sell (b) the price that the monopolist will charge (c) the competitive quantity (d) the competitive price (c) the deadweight loss from monopoly powerarrow_forwardAnswer all the questions: Identify the market structure that is characterized by a single seller Identify the market structure that is characterized by each seller selling identical products. Identify the type of elasticity that applies to a demand curve for a single firm in a perfectly competitive market Explain why the demand curve for a monopolist is inelastic. Identify two ways governments try to reduce the market power of monopoliesarrow_forward
- Which of the following statements is false? Select one: a. Ceteris paribus, a monopolist charges the same price as a perfect competitor. b. All of the other statements are false. c. The monopolist never takes a loss. d. All monopolies are created by the government.arrow_forwardQuestion: answer the images in a short run monopolist will shut down when? a natural monoploy is most likely to occur in the market when?arrow_forwardWhich of the following is true? a) A monopolist produces on the inelastic portion of its demand. b) A monopolist always earns an economic profit. c) The more inelastic the demand, the closer marginal revenue is to price. d) In the short run a monopoly will shutdown if P < AVC. here, part d is correct. I need an explanation why the first three options are incorrect and how we can correct them.arrow_forward
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