Question

A monopolist faces the inverse demand for its output:

p = 30 – Q

The monopolist faces a cost curve: C(Q) = 5Q. The government is seeking ways to collect

tax revenue from the monopolist by imposing an ad valorem tax of 20% on the

monopolist.

1)Draw an approximate graph to depict the before-tax and after-tax price – quantity

combination (in one graph).

Answer #1

A monopolist faces the inverse demand for its output: p = 30 – Q
The monopolist faces a cost curve: C(Q) = 5Q. The government is
seeking ways to collect tax revenue from the monopolist by imposing
an ad valorem tax of 20% on the monopolist.
a. What price and quantity does the monopolist choose (post-tax)
and how much revenue does the government generate from the tax?
Does the monopolist earn any profits in this case? If so, how much...

A monopolist faces the inverse demand for its output:
p = 30 – Q
The monopolist faces a cost curve: C(Q) = 5Q. The government is
seeking ways to collect
tax revenue from the monopolist by imposing an ad valorem tax of
20% on the
monopolist.
a. What price and quantity does the monopolist choose (post-tax)
and how much
revenue does the government generate from the tax? Does the
monopolist earn any
profits in this case? If so, how much...

A monopolist faces the inverse demand function p = 300 – Q.
Their cost function is c (Q) = 25 + 50Q. Calculate the profit
maximizing price output combination

A monopolist faces an inverse demand curve P(Q)= 115-4Q and
cost curve of C(Q)=Q2-5Q+100.
Calculate industry output, price, consumer surplus, industry
profits, and producer surplus if this firm operated as a
competitive firm and sets price equal to marginal cost.
Calculate the dead weight loss sue to monopoly.

A monopolist faces the inverse demand curve p = 120 - 6q. At
what level of output is his total revenue maximized?
20
5
20
15
10

A monopolist faces demand Q = 110 – P, and has a total cost of
50 + 5Q + 2Q2. Then to
maximize profit, the monopolist should produce ___ units of Q and
charge a P = ___.
(a.) 25.5; 72.5
(b.) 17.5; 75
(c.) 25.5; 84.5
(d.) 17.5; 92.5
Could you draw the graph with curves?

A monopolistically competitive firm faces the inverse demand
curve P = 100 – Q,and its marginal cost is constant at $20. The
firm is in long-run equilibrium.
a.Graph the firm's demand curve, marginal revenue curve, and
marginal cost curve. Also, identify the profit-maximizing price and
quantity on your graph.
b.What is the value of the firm's fixed costs?
c.What is the equation for the firm's ATC curve?
d.Add the ATC curve to your graph in part a
please actually graph...

A monopolist faces an inverse demand of p(y)=300-3y, and its
total cost of production is c(y)=30y, where y is the output level.
Calculate the x-intercept of the monopolist's marginal revenue
curve.

A patent monopolist faces a demand curve: P=10-1/3 Q and total
cost F+2Q+2/3 Q^2, where F is non-negative.
i. What is the monopolist’s short-run profit-maximizing output
and price? What is his short-run profit per period?
ii. In addition to solving for the profit-maximizing output and
price, draw a graph showing the inear demand curve, the marginal
revenue and marginal cost curves that demonstrate the situation
described above

Monopoly
Consider a situation where a monopolist faces the following
inverse market demand curve
p = 132 − 2q
and the following cost function
T C = 12q + 2q 2
f) How much deadweight loss does the monopolist create?
g) What could the government do to regulate the monopolist?

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