Question

2. Say a monopolist sells in two separate markets, with demand PA = 30 - 2Q (that is, the MRA = 30 – 4Q) and PB = 40 - Q (that is, the MRB = 40 – 2Q), respectively. Marginal costs in both markets are constant and equal to 10. What are the prices and quantities that the monopolist would charge in each market to maximize profit. (4 pts) Show your work.

3. A monopolist has marginal costs MC = Q and home market demand P = 40 – Q (that is the MR = 40 – 2Q). The monopolist can also sell to a foreign market at a constant price P = 16. Find and graph the quantity produced, quantity sold in the home market, quantity sold in the foreign market, and price charged in the home market. Explain why the monopolist’s profits would fall if it were to produce the same quantity but sell more in the home market.

Please help with these two questions!! Show work and label everything! THANK YOU :)

Answer #1

Example 1:
Suppose a monopolist faces an inverse demand function as p = 94
– 2q. The firm’s total cost function is 1.5q2 + 45q +
100. The firm’s marginal revenue and cost functions are MR(q) = 90
– 4q and MC(q) = 3q + 45.
How many widgets must the firm sell so as to maximize its
profits?
At what price should the firm sell so as to maximize its
profits?
What will be the firm’s total profits?

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...

Part A
A demand curve is P = 10- Q. So its MR is
A)5-2Q
B)10- 4Q
C)10 - Q
D)10 -2Q
Part B
A non- competitive firm's demand curve is P = 10- 2Q. So its MR
is
A)5-2Q
B)10- 4Q
C)10 - Q
D)5 - Q
Part C
"If a firm with pricing power in the market faces a demand curve
of P = 1800-2Q and marginal costs of MC = 200, how much is the
equilibrium (profit...

1. Suppose a monopolist faces the demand for its good or service
equal to Q = 130 - P. The firm's total cost TC = Q2 +
10Q + 100 and its marginal cost MC = 2Q + 10. The firm's profit
maximizing output is
2. Suppose a monopolist faces the demand for its good or service
equal to Q = 130 - P. The firm's total cost TC = Q2 +
10Q + 100 and its marginal cost MC...

A monopolist faces inverse demand p = 40 − 2q and has a marginal
cost of 20.
(a) [20 points] What output will the monopolist produce?
(b) [10 points] What are consumer surplus, monopoly profits, and
deadweight loss?
(c) [10 points] Suppose the monopolist’s costs rise to 90. What
are consumer surplus, monopoly profits, and deadweight loss
now?
Please help to explain part (c).

Assume a monopolist is able to practice price discrimination in
two separate markets. Each market has a different demand curve for
the monopolist’s product:
Q1 = 1000 – 4P (Market 1: Maine)
Q2 = 1200 – 4P (Market 2: Texas)
Let the short-run total cost function for the monopolist be SRTC
= 100 + 0.25Q2
a. Find the quantity and price at which the monopolist will sell
in each market, and figure out the firm’s total profits from the
combined...

The following equations describe the monopolist’s demand,
marginal revenue, total cost and marginal cost:
Demand: Qd = 12 – 0.25P | Marginal Revenue: MR = 48 – 8Q | Total
Cost: TC = 2Q^2 | Marginal Cost: MC = 4Q
Where Q is quantity and P is the price measured in dollars.
a) What is the profit maximizing monopoly’s quantity and
price?
b) At that point, calculate the price elasticity of demand. What
does the value imply?
c) Does this...

You have the following information about a monopolist
p = 20 - 2q (1)
MR = 20 - 4q (2)
MC = 8 (3)
where equation (1) denotes the monopolist demand curve, equation
(2) denotes its the marginal revenue function, and equation (3) is
the marginal cost, assumed to be constant here. (i) Use the Lerner
index to approximate the degree of monopoly power. (ii) Calculate
the deadweight loss.

1. A monopolist producer of a sailboat motor sells
output in two geographically separated markets (East and West
Coasts). Inverse demand and marginal revenue for the two
markets are:
P1 = 2000 - Q1 and MR1 = 2000 - 2Q1 and P2 = 3000 -
2Q2 and MR2 = 3000 - 4Q2.
The monopolist’s total cost is C = 500,000 + 1000(Q1 +
Q2). What are price, output, profits, marginal revenues, and
deadweight loss for the following two cases:
(a)...

The market demand curve is P = 90 − 2Q, and each firm’s total
cost function is
C = 100 + 2q2.
Suppose there is only one firm in the market. Find the
market
price, quantity, and the firm’s profit.
Show the equilibrium on a diagram, depicting the demand function
D (with the vertical and horizontal intercepts), the marginal
revenue function MR, and the marginal cost function MC. On the same
diagram, mark the optimal price P, the quantity Q,...

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