3. Monopoly Consider a situation where a monopolist faces the following inverse market demand curve 132...
Consider a situation where a monopolist faces the following inverse market demand curve p= 100 – 4 and the following cost function TC = 4q+72 a) Derive the marginal revenue and marginal cost functions. b) What are the equilibrium price and quantity if this market behaved as if it were perfectly competitive? c) Calculate the Consumer Surplus, Producer Surplus and Welfare levels under perfect com- petition. d) What are the equilibrium price and quantity when the monopolist produces as a...
4. Monopoly (15 pts) Consider a situation where a monopolist faces the following inverse market demand curve p= 100 – 0.54 and the following cost function TC = 89 +92 a) Derive the marginal revenue and marginal cost functions. b) What are the equilibrium price and quantity if this market behaved as if it were perfectly competitive? c) What are the equilibrium price and quantity when the monopolist produces as a monopolist?
MR = 100 - 2q MC = 4 + 2q Under Perfect Competition EQ Price = 68 EQ Quantity = 32 CS = 512 PS = 1024 TW = 1536 Under Monopoly EQ Quantity = 24 EQ Price = 76 Now ... Calculate the Consumer Surplus, Producer Surplus and Welfare levels under monopoly. How much deadweight loss does the monopolist create? What could the government do to regulate the monopolist? Consider a situation where a monopolist faces the following inverse...
Practice Question 4. The inverse demand curve a monopoly faces is p = 30 – Q. The firm's total cost function is C(Q) = 0.5Q² and thus marginal cost function is MC(Q) = Q. (a) Determine the monopoly quantity, price and profit, and calculate the CS, PS and social welfare under the monopoly. (b) Determine the socially optimal outcome and calculate the CS, PS and social welfare under the social optimum. (c) Calculate the deadweight loss due to the monopolist...
Part E-H Assume a profit-maximizing monopolist faces a market demand given by P = (12,000 – 90Q)/100 and long run total and marginal cost given by LRTC = 5Q + Q2 + 40 (Note: The answer to this question must be hand-written.): a) Find the equation of the marginal revenue curve corresponding to the market demand curve. b) Find the equation for the marginal cost function. c) Find the profit-maximizing quantity of output for the monopoly and the price the...
3. Consider a uniform-price monopolist that faces demand curve P() 14 2Q and faces a total cost TC() 20 (a) Calculate the profit maximizing price and quantity erw erwyat er Patt Q= (b) Determine the consumer surplus, producer surplus, and deadweight loss erwyat erwy erwyatt CS = el DWL =
If a monopoly faces an inverse demand curve of p=330-Q, has a constant marginal and average cost of $90, and can perfectly price discriminate, what is its profit? What are the consumer surplus, welfare, and deadweight loss? How would these results change if the firm were a single price monopoly? Profit from perfect price discrimination (T) is S . (Enter your response as a whole number) Corresponding consumer surplus is (enter your response as whole numbers): CSESO welfare is W=$...
1. Consider a market dominated by a monopolist. The demand in this market is Q=100-5P. The monopolist faces a constant MC=AC=$4 a. Calculate the monopoly P and Q b. Calculate the monopoly profit c. Calculate consumer surplus under monopoly d. What would P and Q be if this were a perfect competition? e. What would profit and consumer surplus be if this were a perfect competition? f. What is the deadweight loss to having the monopoly? g. If consumers could...
Problem 3: A market with a monopoly producer has inverse demand P = 120 - 2Q (which gives marginal revenue MR = 120 - 4Q). The monopolist has marginal costs are MCQ) = 4Q and no fixed costs. a) What is the monopolist's producer surplus when it charges the profit maximizing uniform price. b) What is the deadweight loss due to monopoly in this market? c) What would the monopolist's producer surplus be if it could engage in first degree...
Consider a market dominated by a monopolist. The demand in this market is Q=100-5P. The monopolist faces a constant MC=AC=$4 a. Calculate the monopoly P and Q b. Calculate the monopoly profit c. Calculate consumer surplus under monopoly d. What would P and Q be if this were a perfect competition? e. What would profit and consumer surplus be if this were a perfect competition? f. What is the deadweight loss to having the monopoly? g. If consumers could get...