Question

Consider a monopolist who produces good X using a total cost
function 20 + 12X. The demand

for good X is X = 500 – 2P, where P is the market price.

a. Find the profit maximizing output level for the firm, as well as
the price.

b. Find the DWL at the monopolist’s profit maximizing output.

Answer #1

Consider a pure monopolist who faces demand Q= 205 - 2P and has
a cost function C(Q) = 2Q.
Solve for the information below, assuming that the monopolist is
maximizing profits.
The monopolist is able to produce at a constant marginal cost of
_________
The monopolist's profit-maximizing level of output is Q* =
______
The monopolist's profit-maximizing price is P* = _________

Consider a total cost function of TC = 0.5Q^2 +10Q + 20 and the
market demand function Q=70-p.
a What is the profit-maximizing output and price for the perfect
competition? Calculate its profit.
b What is the profit-maximizing output and price for the
monopolist? Calculate its profit.
c What is the profit-maximizing output and price for the
monopolist in the second market? Calculate its profit.

Consider a monopolist facing a market demand given by:
P = 100 – 2Q
Where P is the price and Q is quantity. The monopolist produces
the good according to the cost function c(Q) = Q2 +
10.
Determine the profit-maximizing quantity and price the
monopolist will offer in the market
Calculate the profits for the monopolist
Calculate the deadweight loss due to a monopoly. Illustrate
this in a well labeled diagram.

A monopolist facing a market demand Q = 240 – 2p has the total
cost function TC(q) = q2. Draw carefully the relevant
graph with MC, MR, D curves and identify all relevant points,
intersections, intercepts.
(a) What is the monopolist’s profit maximizing quantity and
price?
(b) If the market is reorganized as perfectly competitive, what
should be the market price and quantity?
(c) Calculate the DWL associated with the monopoly in (a).
Now the government notices that the monopolist...

Consider a monopolist facing a market demand given by
P = 100 - 2Q
where P Is the price and Q is the quantity. The monopolist
produces the good according to the cost function
c(Q)=Q2+10
(a) Determine the profit maximizing quantity and price the
monopolist will offer in the market
(b) Calculate the profits for the monopolist.
(c) Calculate the deadweight loss due to a monopoly. Illustrate
this In a well labelled diagram.

Consider a monopolist facing a market demand given by
p=100-2q
Where p is the price and q is the quantity, the monopolist produces
good according to the cost function c(q)=q^2 +10
A determine the profit-maximizing quantity and the price the
monopolist will offer in the market
B calculate the profits for the monopolist
C calculate the deadweight loss due to a monopoly. Illustrate
this in a well-labelled diagram.

A single firm produces widgets, with a cost function and inverse
demand function as follows,
C(q) = 150 + 2q P(Qd) = 10 ? 0.08Qd
(a) Calculate the monopolist’s profit-maximizing price,
quantity, and profit if he can charge a single price in the market
(single price monopolist).
(b) Suppose the firm can sell units after your answer to (a) at
a lower price (2nd-degree price discrimination, timed-release).
What quantity will be sold for what price in this second-tier
market? Calculate...

Consumers prefer to buy higher quality products with reasonable
prices. A monopolist supplies these products. This monopolist
maximizes profits by selling output with better quality. The demand
function facing the monopolist is given by
? = ?(50 − ?),
Where Q = output, P = price, and z = quality of the product the
monopolist sells. Marginal cost of production is independent of
quality and is constant at zero. Assume that product design costs
rise with the quality level chosen...

A monopolist with total cost function ?(?) = ??? + ?2
faces a market demand function of ?D(?) = ??? − ?/ ?
?.
a)Is the monopolist in the short run or the long run?
Explain.
b)Find the profit maximizing price that the monopolist should
set and find the level of profits they will earn at that price.
Please show, step by step solution.

Q1. A monopolist has the following
demand function and marginal cost function P = 120 – Q and MC = 30
+ Q.
i. Derive the monopolist’s marginal revenue function.
ii. Calculate the output the monopolist should produce to
maximize its profit.
ii. (continuation)
iii. What price does the monopolist charge to maximize its
profit?
Now assume that the monopolist above split into two large firms
(Firm A and Firm B) with the same marginal cost as the
monopolist.
Let...

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