Question
1. Consider a monopolist. Here are some data on the demand curve. Price $20 $19 $18...
1. Consider a monopolist. Here are some data on the demand curve.
|
Price |
$20 |
$19 |
$18 |
$17 |
$16 |
|
Quantity (units) |
100 |
120 |
140 |
160 |
180 |
|
Marginal Revenue |
a. Complete the table: For each quantity, compute the marginal revenue.
b. Draw the monopolist’s demand curve and the monopolist’s marginal revenue curve.
c. Suppose that the monopolist’s marginal cost is $9. How much output should the monopolist produce?
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
Table 15-19 A monopolist faces the following demand curve: Quantity Price 0 $20 1 $18 2...
Table 15-19
A monopolist faces the following demand curve:
Quantity
Price
0
$20
1
$18
2
$16
3
$14
4
$12
5
$10
6
$8
7
$6
8
$4
9
$2
10
$0
Refer to Table 15-19. If a monopolist faces a
constant marginal cost of $9, how much output should the firm
produce?
a.
2 units
b.
3 units
c.
4 units
d.
5 units
In the following table are demand and cost data for a pure monopolist. Complete the table...
In the following table are demand
and cost data for a pure monopolist.
Complete the table by filling in the
columns for total revenue, marginal revenue, and marginal cost.
Answer these three questions: (a)
what output will the monopolist produce? (b) What price will the
monopolist charge? (c) What total profit will the monopolist
receive at the profit-maximizing level of output?
Total
Marginal
Total
Marginal
Quantity
Price
revenue
revenue
cost
cost
0
$34
$______
$ 20
...
1. Consider a monopolist where the market demand curve for the produce is given by P...
1. Consider a monopolist where the market demand curve
for the produce is given by P = 520 - 2Q. This monopolist has
marginal costs that can be expressed as MC = 100 + 2Q and total
costs that can be expressed as TC = 100Q + Q2 + 50. (Does not need
to be done. Only here for reference)
2. Suppose this monopolist from Problem #1 is regulated
(i.e. forced to behave like a perfect competition firm) and the...
Consider a monopolist facing the following demand curve: Q = 390 – 0.5P. Further the monopolist...
Consider a monopolist facing the following demand curve: Q = 390
– 0.5P. Further the monopolist faces MCM= ACM = 30.
a. Solve the profit-maximizing level of monopoly output, price
and profits.
b. Suppose a potential entrant is considering entering, but the
monopolist has a cost advantage. Thepotential entrant faces costs
MCPE = ACPE = 40. Assuming the monopolist continues to
profit-maximize,solve the residual demand curve for the potential
entrant
c. Assume the potential entrant follows the Cournot assumption
about...
17. The demand curve faced by a monopolist is a. negatively sloped b. perfectly...
17. The demand curve faced by a monopolist
is
a. negatively sloped
b. perfectly elastic
c. perfectly inelastic
d. unit elastic at all
points
18. If a perfectly competitive firm is producing
at less than the profit-maximizing output level, we can conclude
that
a. price must exceed average
total cost
b. price must exceed marginal
revenue
c. marginal revenue must
exceed marginal cost
d. marginal cost must exceed
price
19. Perfectly competitive...
A monopolist faces the following demand curve: Price Quantity $10 5 $9 10 $8 16 $7...
A monopolist faces the following demand curve:
Price
Quantity
$10
5
$9
10
$8
16
$7
23
$6
31
$5
45
$4
52
$3
60
The monopolist has total fixed costs of $40 and a constant marginal
cost of $5. What is the profit-maximizing level of output?
Select one:
?a. 31 units
?b. 7 units
?c. 16 units
?d. 23 units
A monopolist faces a demand curve P= 24 – 2Q, where P is measured in dollars...
A monopolist faces a demand curve P= 24 – 2Q, where P is
measured in dollars per unit and Q in thousands of units and MR=24
– 4Q. The monopolist has a constant average cost of $4 per unit and
Marginal cost of $4 per unit. a. Draw the average and marginal
revenue curves and the average and marginal cost curves on a graph.
b. What are the monopolist’s profits-maximizing price and quantity?
c. What is the resulting profit? Calculate...
A patent monopolist faces a demand curve: P=10-1/3 Q and total cost F+2Q+2/3 Q^2, where F...
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
1) Suppose that a single price monopolist faces a linear, downward sloping demand curve and a...
1) Suppose that a single price monopolist faces a linear,
downward sloping demand curve and a total cost curve that includes
the following data points:
Price
Quantity
Total Revenue
8
0
7
1
6
2
5
3
4
4
3
5
2
6
1
7
0
8
Quantity
Total Cost
0
2
1
4
2
6
3
8
4
10
5
12
6
14
7
16
8
18
a. What is the profit maximizing condition for a monopolist? In
order...
Assume that a pure monopolist is able to engage in perfect price discrimination and sell each...
Assume that a pure monopolist is
able to engage in perfect price discrimination and sell each unit
of the product at a price equal to the maximum price the buyer of
that unit of the product would be willing to pay. Complete the
table below by computing total revenue and marginal revenue for the
price discriminating monopolist.
Total
Marginal
Total
Marginal
Quantity
Price
revenue
revenue
cost
cost
0
$34
$______
$ 20
1
32
______
$______ ...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 58 seconds ago
asked 2 minutes ago
asked 8 minutes ago
asked 26 minutes ago
asked 41 minutes ago
asked 56 minutes ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago
asked 1 hour ago