The figure shows the demand curve faced by a monopolist. What is the price effect of a price increase from $3 to $5? OA. $400 B. $1,000 OC. $800 OD. $200 C Price ($) A9 60 65 32 F 10 8 7 4 1 0 100 200 300 400 500 600 700 800 900 Quantity (units)
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- (c) A discriminating monopolist is faced with the following price elasticities: e1-0.75 and What pricing policy should the monopolist adopt in the two markets? In which market will it be profitable for the monopolist to operate? Assume now that er ez 0.50, will it be advisable for the monopolist to discriminate or operate a single market? run. Briefly explain why the monopolist has no unique supply curve in the short Unlike the competitive firm, the monopoly firm can make supernormal profit in the long run. Explain why. e-1.50 i. ii. iii. iv. V.Consider the following table representing the market for a new PC game 'Fortnightly'. This game is produced exclusively by a software company called ECF1100 Pty Ltd, thanks to an exclusive copyright having been obtained by lobbying the government minister for industry and development - Mr Eco Stuff. Quantity of Price games 0 1000 2000 3000 4000 5000 6000 7000 8000 9000 10000 11000 12000 $200 $190 $180 $170 $160 $150 $140 $130 $120 $110 $100 $90 $80 Total cost $0 $50,000 $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 $400,000 $450,000 $500,000 $550,000 $600,000 a) Using the table above roughly illustrate what the market demand, MC, ATC, and MR functions would look like (you must show the XY intercepts of the MR function b) Considering the 'monopoly' position, estimate what will be the equilibrium quantity and price of 'Fortnightly' games might be using the table provided earlier c) Using the data in the table provided earlier, how much would a firm be willing to spend in lobbying…K The table shows a sample of prices and the quantity sold by a monopolist. What is the price elasticity of demand at a price of $97? A. 1 B. 1.04 OC. 0.89 OD. O Price 100 99 98 97 96 95 94 Quantity 95 96 97 98 99 100 101
- 28 $55 $50 $45 MC АТС I of $40 $35 $30 $25 $20 Demand = P $15 $10 $5 $0 MR 40 80 120 160 200 240 Output (Q) The diagram above shows the Demand, MR, and cost curves for a monopolist in the short-run. At the profit maximizing Output (Q) level, the monopolist will earn a Total Profit of: Sel one: а. $1,200 b. $2,200 c. $800 d. $2,000 $$Od. $20 16. C. $16 6$ 9 0 181 ATC The profit-maximizing price for Grey's electrical service, a monopolist, isRefer to the graph shown of a profit-maximizing monopolist: $100 $90 MC $80 $70 $60 $50 Price, cost, revenue D 7000 14000 21000 12000 Question: What is the monopolist's economic profit(loss) at the profit-maximizing level of output? O-$280,000 O $0 $140,000 $840,000 O -$140,000 0 /AC MR
- Table 17-5 The table shows the town of Driveaway's demand schedule for gasoline. Assume the town's gasoline seller(s) incurs a cost of $2 for each gallon sold, with no fixed cost. Quantity (Gallons) Price (Dollars per gallon) 0 50 100 150 200 250 300 350 400 (Dollars) 0 350 600 750 800 750 600 350 0 Refer to Table 17-5. If there are exactly five sellers of gasoline in Driveaway and if they collude, then which of the following outcomes is most likely? a. Each seller will sell 30 gallons and charge a price of $4. b. Each seller will sell 40 gallons and charge a price of $4. c. Each seller will sell 30 gallons and charge a price of $5. d. Each seller will sell 50 gallons and charge a price of $3. 8 7 6 5 4 Quesquir Total Revenue 3 2 1 0Please solve Fast i give 2 like The managers of Movies Plus, a large movie theater, want to practice third-degree price discrimination. The managers have learned that college students have an own price elasticity of demand of 1.5 for tickets at Movies Plus and adults have an own price elasticity of 1.2. If the managers have correctly determined the third-degree profit-maximizing price for adults is $15, what is the third-degree profit-maximizing price to charge students? Group of answer choices (1)$13.50 (2)$10.00 (3)$7.50 (4)$8.50Table 17-5 The table shows the town of Driveaway's demand schedule for gasoline. Assume the town's gasoline seller(s) incurs a cost of $2 for each gallon sold, with no fixed cost. Quantity (Gallons) 0 50 100 150 200 250 300 350 400 Price (Dollars per gallon) 8 7 6 5 4 3 2 1 0 Total Revenue (Dollars) 0 350 600 750 800 750 600 350 0 Refer to Table 17-5. If there are exactly two sellers of gasoline in Driveaway and if they collude, then which of the following outcomes is most likely? O Each seller will sell 75 gallons and charge a price of $5. ○ Each seller will sell 75 gallons and charge a price of $2.50. Each seller will sell 50 gallons and charge a price of $7. Each seller will sell 100 gallons and charge a price of $4.
- 4. A monopolist is faced with the following cost and revenue curves: $ 80 70 60 50 40 30 20 10 0 -10 0 -20 100 200 300 400 FMC 500 AC AR 600 MR Quantity (a) What is the maximum-profit output?. (b) What is the maximum-profit price? (c) What is the total revenue at this price and output? (d) What is the total cost at this price and output? (e) What is the level of profit at this price and output? (f) If the monopolist were ordered to produce 300 units, what would be the market price? (g) How much profit would now be made? (h) If the monopolist were faced with the same demand, but average costs were constant $60 per unit, what output would maximise profit? (i) What would be the price now? (j) How much profit would now be made? (k) Assume now that the monopolist decides not to maximise profits, but instead sets a price of $40. How much will now be sold?.Table 15-18Tommy’s Tie Company, a monopolist, has the following cost and revenue information. Assume that Tommy’s is able to engage in perfect price discrimination. COSTS REVENUES QuantityProduced Total Cost MarginalCost QuantityDemanded Price TotalRevenue MarginalRevenue 0 $100 -- 0 $170 -- 1 $140 1 $160 2 $184 2 $150 3 $230 3 $140 4 $280 4 $130 5 $335 5 $120 6 $395 6 $110 7 $475 7 $100 8 $575 8 $95 Refer to Table 15-18. If the monopolist can engage in perfect price discrimination, what is the quantity that maximizes economic profit? Group of answer choices 5 ties 6 ties 7 ties 8 tiesConsumer H Consumer L Limited $50 $25 Pro $175 $100 5.Refer to the above table of consumer valuations for two versions of a software product. If the manufacturer of the software product hopes to exercise second degree price discrimination, what should be the incentive compatible prices for the Limited and Pro versions of the software? Is second degree price discrimination profit maximizing?
