Question

Inverse Demand Equation: P=160–4Qd Marginal Revenue = 160-8Qd Marginal Costs = $0 What is price and...

Inverse Demand Equation: P=160–4Qd Marginal Revenue = 160-8Qd Marginal Costs = $0

  1. What is price and quantity under perfect competition?
  2. What price would a monopoly charge? How much will it produce?
  3. What is the deadweight loss due to monopoly?
  4. If the monopolist can practice perfect price discrimination what is consumer surplus? What is producer 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?
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.
(30 Marks) Suppose a market is characterized by inverse demand P = 15,000-5Q. The marginal revenue...
Suppose a market is characterized by inverse demand P = 15,000-5Q. The marginal revenue curve associated with this market is MR=15,000-10Q. Marginal cost is constant at MC=40. A) Solve for the equilibrium price and quantity if the market is characterized by perfect competition. B) Solve for the equilibrium price and quantity if the market is characterized by a monopoly. C) Explain why total surplus is maximized under perfect competition (absent government intervention, externalities, etc.), but it is not maximized under...
A monopolist faces inverse demand p = 40 − 2q and has a marginal cost of...
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).
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...
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.
1. Suppose a monopolist faces an inverse demand function of P = 150 ? 2Q. The...
1. Suppose a monopolist faces an inverse demand function of P = 150 ? 2Q. The firm’s cost functions is 30Q. (a) What is the firm’s marginal cost? Average cost? How about the firm’s marginal revenue? (b) What would the firm charge if they were a single price monopolist? (c) What is the consumer surplus, producer surplus, and dead weight loss. (d) Suppose the monopolist is able to perfectly price descriminate, what are the consumer surplus, producer surplus, and dead...
13.Suppose a monopoly's inverse demand curve is P = 100 -Q, it produces a product with...
13.Suppose a monopoly's inverse demand curve is P = 100 -Q, it produces a product with a constant marginal cost of 10, and it has no fixed costs. How much more or less is the deadweight loss if the monopoly can practice perfect price discrimination compared to it practicing uniform pricing? ___________
Suppose a monopoly sells to two identifiably different types of customers, A and B. The inverse...
Suppose a monopoly sells to two identifiably different types of customers, A and B. The inverse demand curve for group A is PA = 20 - QA, and the inverse demand curve for group B is PB = 20 - 2QB. The monopolist is able to produce the good for either type of customer at a constant marginal cost of 4, and the monopolist has no fixed costs. If the monopolist is unable to price discriminate (no reselling), (1) what...
In a market with numerous sellers and buyers demand is given by p=240-8q and supply is...
In a market with numerous sellers and buyers demand is given by p=240-8q and supply is p=4+12q. 1. Find the equilibrium price and quantity. 2. Mathematically find the values for consumer and producer surplus. 3. What is the deadweight loss in this market? 4. Suppose instead a monopolist served these same buyers, and the monopolist had marginal cost curve 4+12q. a. Show graphically the consumer surplus that consumers have lost due to monopoly. b. Consumer surplus is lower for two...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT