On the basis of the information below for a single-price monopolist, what would be the profit maximizing output? Quantity 0 1 2 3 4 5 (A) 5 units (B) 4 units Ⓒ3 units (D) 2 units Price $650 $575 $500 $425 $350 $275 Total Cost $400 $525 $705 $980 $1330 $1830
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- 90 80 MC 65 55 52 50 ATC D MR 10 20 35 45 50 Quantity of Output (Units) Refer to the graph above for a pure monopolist: The total profit (loss) for this monopolist is: ($525) $100 $525 $175 Dollars ($)Figure 6 Price $95 and cost per unit 70 59 35 20 panja 580 835 MR 1740 2204 ATC MC D Quantity 12) Refer to Figure 6 to answer the following questions. a) What quantity will this monopoly produce and what price will it charge? b) Suppose the monopoly is regulated. If the regulatory agency wants to achieve economic efficiency, what price should it require the monopoly to charge? c) To achieve economic efficiency, what quantity will the regulated monopoly produce? d) Will the regulated monopoly make a profit if it charges the price that will achieve economic efficiency? e) Suppose the government decides to regulate the monopoly by imposing a price ceiling of $35. What quantity will the monopoly produce and what price will the monopoly charge? f) With the price ceiling of $35, what profit will the monopoly earn?Q (units) 0 1 2 NMT 3 4 5 P ($) 50 45 40 35 30 25 TC ($) 10 $105 none of the above 26 42 58 74 90 If the monopolist maximizes profit, then profit will be O($44) O $47
- Figure 94 Monopolist (dollars) 10 8 6 0 Quantity MC Refer to Figure 94. Suppose that the profit-maximizing/loss minimizing level of output is 40 units per day and the average fixed cost and average variable cost of producing this amount is $4 $7, respectively. (a) What is the total cost of producing 40 units per day? Show your work. (b) What is the total profit earned/loss incurred by producing 40 units per day? Show your work. (c) What price will the firm charge to maximize profit or minimize loss? (d) Should the firm shut down or continue to produce in the short run? Explain.s) You have a bicycle rental business which has 500 adult bikes and 250 children's bikes. The bikes have a fixed cost of $1,000 to maintain, but no marginal cost to rent them out. Demand is below. Price/hour $10 9 8 7 6 ANWAGO 5 4 3 2 1 Adults 50 100 150 200 250 300 350 400 450 500 Children 0 0 0 0 0 50 100 150 200 250 a. If you, by law, can only charge one price, what would it be, and to whom? b. If you could charge adults and children different prices, what would be the prices to each group?Figure: A Profit-Maximizing Monopoly Firm Price, marginal revenue, marginal cost, average total cost A) $5. OB) $13. C) $14. $35 D) $20. 29 26 రారాళి 8 5 0 (Figure: A Profit-Maximizing Monopoly Firm) Look at the figure A Profit-Maximizing Monopoly Firm. This firm's profit per unit is: MC ATC MR 160 220 250 300 Quantity of output (per week)
- Multiple Choice pervey $10 for its product. $12 for its product $16 for its product. $8 for its product.Please refer to th graph attached. The graph shows the Demand, Marginal Revenue, Average Total Cost, Average variable Costs and Marginal Cost curves for a monopolist. (a) What is the profit maximizing/ loss minimizing quantity of output and what is the maximum price the monopolist can charge? (b) Is this monopolist making economic profit or economic loss? How do you know? Explain please. (c) Calculate the firms profit or loss and show the economic profit/loss on the graph.a. b. Quantity Price $70 C. d. 1 12 13 14 15 6 17 18 19 10 $58 $46 $34 Total Revenue $28 $80 $224 $328 $70 $128 $240 $198 $160 Average Revenue $64 $22 $16 Marginal Revenue $58 Refer to Table 1. If the monopolist sells 8 units of its product, how much total revenue will it receive from the sale? $34 $22 $-2 $-14 $-26
- Willingness to pay for Spreadsheet and Word Processing Programs Consumer Type Number Spreadsheet Word Processor Both A. 1,000 100 150 250 1,000 200 200 400 1,000 250 100 350 D. 1,000 150 300 450 What price would a mompolist that sold spreadsheels only, charge if his unit cost is 10? O 100 150 200 250Economics 1. Assume a monopolist’s only cost is constant marginal cost of $2. Further assume there are 10 consumers with individual inverse demand of p = 10 − 2q. (a) What is the profit maximising price and quantity for the monopolist. (b) What are the consumer and producer surplus at this outcome. (c) What is the dead weight loss (compared to the socially optimal output and price). (d) Now assume the monopolist switches to a two part tariff (fixed fee and per unit fee). Find the profit maximising fixed fee and per unit fee.Product A Product B Reservation Price Reservation Price 1,000 200 800 400 Marginal Cost 500 100 Use the table above. If the firm does not bundle the products, what single price should the firm charge for product A to maximize profit? 1,000 900 500 08 800 Customer 1 2