Consider a monopolist who has constant marginal cost of $20 and no fixed cost. This monopolist...
Consider a monopolist who has constant marginal cost of $20 and no fixed cost. This monopolist can distinguish between students and non-students. The demand function for each consumer group is as follows: Students: P = 200 − Q. Non-students: P = 400 − 2Q.
(a) Find the profit-maximizing quantity to sell to each group.
(b) Find the profit-maximizing price to charge to each group.
(c) Calculate the monopolist’s profit.
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Consider a monopolist who has constant marginal cost of $20 and
no fixed cost. This monopolist...
A monopolist’s inverse demand is P=500-2Q, the total cost function is TC=50Q2 + 1000Q and Marginal...
A monopolist’s inverse demand is P=500-2Q, the total cost function is TC=50Q2 + 1000Q and Marginal cost is MC=100Q+100, where Q is thousands of units. a). what price would the monopolist charge to maximize profits and how many units will the monopolist sell? (hint, recall that the slope of the MARGINAL Revenue is twice as steep as the inverse demand curve. b). at the profit-maximizing price, how much profit would the monopolist earn? c). find consumer surplus and Producer surplus...
Suppose a monopolist faces the following demand curve: P = 440 – 7Q. The long run marginal cost of production is constant and equal to $20, and there are no fixed costs. A) What is the monopolist’s...
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26. (8 points) Consider a monopolist who faces a constant average and marginal cost of $5...
26. (8 points) Consider a monopolist who faces a constant average and marginal cost of $5 and a linear demand curve of P = 20-2Q, where P is the price the monopolist charges and Q is the quantity consumers purchase. To obtain the optimal quantity and price, the monopolist needs to obtain the marginal revenue, which has the same intercept as the demand curve but twice as steep. Obtain the monopolist's marginal revenue, optimal output, and price.
1. Suppose that a single-price monopolist faces the demand function P 100 Q where I is...
1. Suppose that a single-price monopolist faces the demand function P 100 Q where I is average weekly household income, and that the firm's marginal cost function is given by MC(Q) 2Q. The firm has no fixed costs. = (a) If the average weekly household income is $600, find the firm's marginal revenue function. (b) What is the firm's profit-maximizing quantity of output? At what price will the firm sell that output? What will the firm's marginal cost be? (c)...
Consider a monopolist facing the demand curve p = 90 − 2q with cost function c(q) = 0.25q^2 . (a) Find the profit-maximi...
Consider a monopolist facing the demand curve p = 90 − 2q with cost function c(q) = 0.25q^2 . (a) Find the profit-maximizing quantity qm and price pm. What are the monopolist’s profits? (b) What is the value of the Lerner index at qm? (c) Find the efficient quantity and draw a graph depicting the deadweight loss under monopoly.
Consider a single-price monopolist (i.e. the monopolist cannot price discriminate) facing the following market demand curve:...
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A natural monopolist faces the following demand curve: P = 409 - 2Q, its total cost...
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A natural monopolist faces the following demand curve: P = 202 - 5Q, its total cost...
A natural monopolist faces the following demand curve: P = 202 - 5Q, its total cost is given by: TC = 720 + 2Q (marginal cost is the slope of total cost). (a) If the government regulates the monopolist to charge a socially optimal price, what price will it charge and how many units will it sell? How much are the profit, consumer surplus and producer surplus? (b) If it is not a regulated monopolist, what is its profit maximizing...
Explain with rules Consider a monopolist who encountered a constant average and marginal cost of $5...
Explain with rules
Consider a monopolist who encountered a constant average and marginal cost of $5 and a linear demand function given by P-20-2Q, where P is the price the monopolist charges and O is the quantity consumers purchase. To obtain the optimal quantity and price, the monopolist needs to obtain the marginal revenue function, which has the same intercept as the demand function but twice as steep. 1. Obtain the monopolist's MR function, optimal output and price. 2. Without...
A natural monopolist faces the following demand curve: P = 202 - 5Q, its total cost is given by: ...
A natural monopolist faces the following demand curve: P = 202 - 5Q, its total cost is given by: TC = 720 + 2Q (marginal cost is the slope of total cost). (a) If the government regulates the monopolist to charge a socially optimal price, what price will it charge and how many units will it sell? How much are the profit, consumer surplus and producer surplus? (b) If it is not a regulated monopolist, what is its profit maximizing...
26. (8 points) Consider a monopolist who faces a constant average and marginal cost of $5 and a linear demand curve of P = 20-2Q, where P is the price the monopolist charges and Q is the quantity consumers purchase. To obtain the optimal quantity and price, the monopolist needs to obtain the marginal revenue, which has the same intercept as the demand curve but twice as steep. Obtain the monopolist's marginal revenue, optimal output, and price.
1. Suppose that a single-price monopolist faces the demand function P 100 Q where I is average weekly household income, and that the firm's marginal cost function is given by MC(Q) 2Q. The firm has no fixed costs. = (a) If the average weekly household income is $600, find the firm's marginal revenue function. (b) What is the firm's profit-maximizing quantity of output? At what price will the firm sell that output? What will the firm's marginal cost be? (c)...
Explain with rules
Consider a monopolist who encountered a constant average and marginal cost of $5 and a linear demand function given by P-20-2Q, where P is the price the monopolist charges and O is the quantity consumers purchase. To obtain the optimal quantity and price, the monopolist needs to obtain the marginal revenue function, which has the same intercept as the demand function but twice as steep. 1. Obtain the monopolist's MR function, optimal output and price. 2. Without...
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