Which of the following is true for any monopolist ? (A) price equals marginal revenue (B) price is always greater than marginal revenue (C) price is always less than marginal revenue (D) price is always equals the average total cost (ATF)
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Which of the following is true for any monopolist ?
(A) price equals marginal revenue
(B) price is always greater than marginal revenue
(C) price is always less than marginal revenue
(D) price is always equals the
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- A monopolist faces an inverse demand curve P(q) = 28 – 3q. The cost curve is C(q) = 10q. What is deadweight loss in this market? (a) DWL = 3 (b) DWL = 27/2 (c) DWL = 19 (d) DWL = 27 (e) None of the above.A 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 power(a) A monopolist has discovered that the inverse demand function of a person with income Y for the monopolist’s product is P = 0.002Y-Q where P is the price, Y the income, and Q is the output. The monopolist can observe the incomes of its consumers and hence vary its price accordingly. The monopolist has a total cost function C(Q) = 100Q. Calculate the profit maximising price as a function of the consumer’s income Y carefully explaining all the steps in the derivation of the formula. (b) A monopolist has a constant marginal cost of £2 per unit and no fixed costs. He faces two separate markets in the United States and in the UK. The goods sold in one market are never resold in the other. He sets one price P1 for the US market and another price P2 for the UK market (both measured in £). The demand in the United States is given by Q1=7,000-700P1 and the demand in the UK is given by Q2=1,200-200P1. Calculate the profit maximising output produced and price charged in each country by the…
- A monopolist faces the demand curve Q(P ) = 50 − P 2 . The firm can produce output with marginal costs MC(Q) = Q and no fixed costs. Hint for the following questions: if revenue is of the form R(Q) = (a − bQ)Q, then the derivative of revenue is a − 2bQ. (a) What is the profit maximizing price for the monopolist in this market? (b) What is the deadweight loss from monopoly in this market, compared to the efficient output that sets price equal to marginal cost? *Please fully explain out any mathAll 20 consumers are alike and each has a demand curve for a monopolist's product of p=15 -3q. The cost of production C(Q) =2Q. Let the monopolist charge a price of $PM for qM unit purchased. Find the menu prices that maximize profits? (The buyer pays menu price PM for quantity qM) What is the maximum profit the monopolist can earn in this market? (pi)?Suppose a monopolist has the following cost function C(Q) = 40Q (with marginal cost MC = 40). Suppose it faces market demand of P = 100 - Q.< (a) Sketch market demand, marginal revenues, and marginal costs. Be neat.< (b) What is the monopolist's optimal level of output, price, and profits? Show your work.< (c) What is the deadweight loss (DWL) associated with the monopoly output? Show your work and explain why the DWL arises.< (d) (Cournot Competition) Now suppose we added a second firm that has identical costs to the monopolist. Show that the resulting Cournot Equilibrium has each firm producing output of 60 units. That is, show that, if the other firm sells 60 units, then the best a firm can do is also sell 60 units. (e) What are total profits under Cournot Competition compared to the Monopoly case? Why do they differ? (f) What happens to the deadweight loss under Cournot Competition relative to the Monopoly case? Explain why this happens.<
- A monopolist's demand function is given by D(p) = 90 – 2p. This - monopolist is facing a cost function, C(y) = (1/2)y² + 600. (a) Is this a natural monopoly? Explain. (b) How can government regulate this monopolist to produce the efficient amount of products?A monopolist faces a demand curve given by Qd = 270 – P and faces a short run total cost function given by TC = 30 + 3q2. (i) What is the output level that maximizes the firm's revenue?A monopolist has a cost function of c(y)=yso that its marginal costs are constant at $1 per unit. it faces the following demand curve: 0 if p> 20 or 100/y if p is less than or equal to 20 find (1) What is the profit-maximizing choice of output? (2) If the government could set a price ceiling on this monopolist in order to force it to act as a competitor, what price should the government set? 3) What output would the monopolist produce if he is forced to behave as a competitor?
- A monopolist with total cost 80 - 20Q + Q2 and marginal cost MC = 2Q - 20 faces average revenue (demand) P = 1000 - Q and hence marginal revenue MR = 1000 - 2Q. (a) Calculate the price that the monopolist will charge and the quantity of output. (b) Assume that the government sets a price ceiling at the competitive price. Calculate (i) the quantity supplied by the monopolist (ii) the monopolist's profit. (c) Calculate the deadweight loss from monopoly power in (a)The marginal cost of a product is fixed at MC = 20. The demand for the product is Q = 100- 2P. (a) What is the profit maximizing quantity for a monopolist? What is the price? What is the total surplusA monopolist has discovered that the inverse demand function of a person with income Y for the monopolist’s product is P = 0.002Y-Q where P is the price, Y the income, and Q is the output. The monopolist can observe the incomes of its consumers and hence vary its price accordingly. The monopolist has a total cost function C(Q) = 100Q. A. Calculate the profit maximising price as a function of the consumer’s income Y carefully explaining all the steps in the derivation of the formula. B. A monopolist has a constant marginal cost of £2 per unit and no fixed costs. He faces two separate markets in the United States and in the UK. The goods sold in one market are never resold in the other. He sets one price P1 for the US market and another price P2 for the UK market (both measured in £). The demand in the United States is given by Q1=7,000-700P1 and the demand in the UK is given by Q2=1,200-200P1. Calculate the profit maximising output produced and price charged in each country by the…
