Question

- 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) = Q^{2} +
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.

Answer #1

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 monopolist faces a demand curve given by P = 70 – 2Q where P
is the price of the good and Q is the quantity demanded.The
marginal cost of production is constant and is equal to $6. There
are no fixed costs of production.
A. What quantity should the monopolist produce in order to
maximize profit?
B. What price should the monopolist charge in order to maximize
profit?
C. How much profit will the monopolist make?
D. What is...

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?

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...

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...

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.

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 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...

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?

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 22 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

asked 2 hours ago

asked 2 hours ago

asked 3 hours ago

asked 3 hours ago

asked 3 hours ago