Question

Hawkins micro brewery has a monopoly on oatmeal stout in the local market. The inverse demand...

Hawkins micro brewery has a monopoly on oatmeal stout in the local market. The inverse demand is P = 50 - 0.5Q. The marginal revenue is MR = 50 - 1Q. MC = 5 + 0.5Q.
Calculate Hawkins profit maximizing output.
Calculate the producer surplus.
Calculate the dead-weight loss.
What is the optimal price ceiling?
If Hawkins was able to practice perfect price discrimination what price would it charge?
What is the new prucer surplus.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A monopoly is facing inverse demand given by P = 40−0.5Q and marginal cost given by...
A monopoly is facing inverse demand given by P = 40−0.5Q and marginal cost given by MC = 7+0.1Q. Illustrate these on the graph and answer the questions below. (a) If the monopolist is unable to price discriminate, what is the profit-maximizing quantity? What is the price? What is consumer surplus? Producer surplus? Deadweight loss? (b) Suppose instead the monopolist is able to perfectly price discriminate. How many units will be sold? What is consumer surplus? Producer surplus? Deadweight loss?
Suppose the inverse demand for a product produced by a single firm is given by P...
Suppose the inverse demand for a product produced by a single firm is given by P = 200 ? 5Q and that for this firm MC = 20 + 2Q. a) ) If the firm cannot price-discriminate, what are the profit-maximizing price and level of output? b) If the firm cannot price-discriminate, what are the levels of producer and consumer surplus in the market? What is the deadweight loss? Both compute and illustrate each on a graph. c) If the...
Imagine a firm called Bapple that is the monopoly in the market for smartwatches, with cost-functionC(Q)...
Imagine a firm called Bapple that is the monopoly in the market for smartwatches, with cost-functionC(Q) = 3Q2. Imagine the inverse demand function for smartwatches isp(Q) =400−2Q. 1.1 A. What are equilibrium price and equilibrium quantity? 1.2 B. Show the equilibrium price and equilibrium quantity graph-ically. Include the inverse demand curve, firm’s marginal rev-enue curve, and firm’s marginal cost curve. Now assume that Bapple is able to perfectly price discriminate in the market for smart-watches. 1.3 C. What three conditions...
he inverse demand function faced by a monopoly is given byP=103Q. The monopolyhas a total cost...
he inverse demand function faced by a monopoly is given byP=103Q. The monopolyhas a total cost functionTC=Q2+2Q and a marginal cost function MC=2Q+2. (a) What are the monopolist’s profit maximizing price and quantity? Show these and theassociated deadweight loss on a diagram. (b) Calculate what price and quantity would prevail if this were a perfectly competitive marketwith the marginal cost curve acting as the supply curve? Show this price on your diagramfor part (a). (c) If the government imposes a...
The inverse market demand curve facing a monopoly retailer of gold jewelry is described by P=3000-0.5Q....
The inverse market demand curve facing a monopoly retailer of gold jewelry is described by P=3000-0.5Q. The retailer buys jewelry at a wholesale price, r, set by the monopolist manufacturer. Marginal cost for the manufacturer is 500. The retailer has additional marginal costs=100. What is the profit-maximizing wholesale price for the manufacturer? What is the profit-maximizing retail price for the retailer? What is the profit-maximizing quantity? If the two firms merged, what would be the profit-maximizing retail price and quantity?
1. Consider a market with inverse demand P (Q) = 100 Q. A monopolist with linear...
1. Consider a market with inverse demand P (Q) = 100 Q. A monopolist with linear cost C(Q) = 20Q serves this market. (a) Find the monopolistís optimal price and quantity. (b) Find the price, quantity, proÖt, consumer surplus, and social welfare under perfect competition. (c) Find the optimal proÖt, consumer surplus, social welfare and the deadweight loss for monopoly. (d) What is the % loss in social welfare as we move from perfect competition to monopoly.
Aqua Pure has a natural monopoly on providing water to households in a local apartment complex....
Aqua Pure has a natural monopoly on providing water to households in a local apartment complex. They can provide water at an average cost of ATC = 240/Q + 6, and a constant marginal cost of MC = $6. Demand for water in the apartment complex is given by P = 40 – 0.5Q. What is Aqua Pure’s unregulated monopoly price, the socially optimal price, and the fair-return price? Monopoly Price: $ _______ Socially Optimal Price: $ _______ Fair-Return Price:...
Aqua Pure has a natural monopoly on providing water to households in a local apartment complex....
Aqua Pure has a natural monopoly on providing water to households in a local apartment complex. They can provide water at an average cost of ATC = 240/Q + 6, and a constant marginal cost of MC = $6. Demand for water in the apartment complex is given by P = 40 – 0.5Q. What is Aqua Pure’s unregulated monopoly price, the socially optimal price, and the fair-return price? Monopoly Price: $ Socially Optimal Price: $ Fair-Return Price: $
Under patent protection, a firm has a monopoly in its production. Market demand is estimated to...
Under patent protection, a firm has a monopoly in its production. Market demand is estimated to be P = 200 – 0.7Q. The firm’s economic costs are given by ATC = MC = $60 per unit. A. Determine the firm’s optimal output, price and economic profit.   B. After the firm’s patent expires, predict the new market output and price under perfect competition. Assume that competing suppliers have the same economic costs as the original producer. What is the new market...
The demand for the goods offered by a monopolist can be determined by the inverse demand...
The demand for the goods offered by a monopolist can be determined by the inverse demand function ?(?) = 8 - 2/3 q, where ? describes the offered is quantity. The cost function of the monopolist is: ?(?) = 1/3q2 + 2q + 1 a) Please calculate the profit-maximizing production quantity ?M, the profit-maximizing prize ?M and the corresponding profit ?M of the monopolist. b) Now please display this situation graphically and then determine the Consumer and producer surplus from...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT