Use the following data for a pure monopoly to calculate the firm's: (a) total revenue, marginal revenue, marginal costs, and average total cost; (b) its profit-maximizing output level and produce price; (c) its profit. (d) Use the price-cost formula to determine whether or not the firm's operations are productive
6. You are the manager of a monopoly, and your demand and cost functions are given by P = 480 - 8Q and C(Q) = 500 + 4Q2, respectively. - What price-quantity combination maximizes your firm's profits - Calculate the maximum profits. - Is demand elastic, inelastic, or unit elastic at the profit-maximizing price quantity com
The marginal revenue curve of a monopoly crosses its marginal cost curve at $30 per unit, and an output of 2 million units. The price that consumers are willing and able to pay for this output is $40 per unit. If it produces this output, the firm's average total cost is $43 per unit, and its average fixed cost is $8 per unit.
In a celebrated case tried during 1998, the department of justice charged microsoft corporation with a wide range of anticompetitive behavior. Among the charges leveled by the DOJ was the allegation that Microsoft Illegaly "bundled" the sales of its microsoft explorer with its basic windows operating system. DOJ alleged that by
Why is the government so quick to regulate monopolies and potential monopolies? What are the major concerns and evils that arise from this market structure?
You are the manager of a monopoly. A typical consumer's inverse demand function for your firm's product is P=100-2Q and your cost function is C(Q)=20Q. a. Determine the optimal two part pricing strategy. b. How much additional profit do you earn using a two part pricing strategy compared with charging the consumer a per unit
"How high should a monopoly set its prices in order to maximize profits? When you post a response to this question, place it in the context of one of the following examples: A geographically isolated gas station. A concert on campus. Soft drinks at a sporting event. A prescription drug. "
Third degree price discrimination: A firm is a monopoly in two markets. The demand function in market 1 is p1 = 2 - q1 and p2 = 1 - q2 in market 2. The cost function is C (Q) = 2Q2: Will the firm be willing to serve market 2?
Address the differences between monopolies, monopolistic competitions, and oligopolies.
The accompanying diagram depicts a monopolist whose price is regulated at $10 per unit. Use this figure to answer that follow. a What price will an unregulated monopoly charge? b What quantity will an unregulated monopoly produce? c How many units will a monopoly produce when the regulated price is $10 per unit? d Determine
A per-unit tax t>0 is levied on the output of a monopoly. The monopolist faces demand q=p^-e, e>1, and has constant average costs. Show that the monopolist will increase price by more than the amount of the per-unit tax.
I need help understanding the questions being asked below. 1. This week, we will be studying different market structures. And remember monopolistic competition is not the same as monopoly or competition, it is its own unique market structure. Also, remember we are describing product market structures, not industries. And
(1) Assume that firms in the short-run are earning above-normal profits. Explain what will happen to these profits in the long-run for the following markets: (i) Pure monopoly (ii) Oligopoly (iii) Monopolistic competition (iv) Perfect competition
Technological Innovation has catapulted many new companies to make enormous profits and dominate new niches in the market place. Should the Government apply regulatory powers over vastly profitable companies if no competitors exist?
Is Microsoft a monopoly? Why or why not?
Many airline routes worldwide are served by only one airline (a monopoly). Within the U.S., these are often from a small or mid-sized city to a major carrier hub and frequently operated by a regional carrier under contract to the larger airline. -Will these monopolies typically earn economic profits? -Why do not other airlin
Calâ??s Cab Company (CCC) has a taxi monopoly in Wen Kroy. The demand for taxi services in Wen Kroy is given by Q = 1,500 - P. CCCâ??s costs are given by TC = 100 - Q2 + 5Q3. Its maximum monopoly QUANTITY is:
Question 1 Refer to the table that shows the demand schedule for a firm that has a monopoly in the sale of personla computers at 2,000.00 Question 2 Refer to the Graph. if this monopolist were forced to set price equal to average cost, i would charge a price of: $2, $3, $8 or $12 Question 3 Refer to the graph. Ass
Hair growing has the following demand curve P=101-0.00002Q where P is measured in dollars and Q in number of pills a year. A/ Your marginal cost for producing a hair grow pill is $1. What is the profit maximizing quantity and what is your profit. B/ Suppose your production facility can only produce 1,000,000 pills per year
Please see the attached file. a. What is the optimal price? b. What is the Profit per unit c. What is the ATC in dollars? d. If the monopolist were to behave like a perfectly competitive irm(operating in the long run), determine its price. How do you arrive at each?
The Smith's Company's marketing manager has determine that the price elasticity of demand for its product equals -2.2. According to the studies he has carried out, the relationship between the amount spent by the firm on advertising and its sales as follows: Advertising Expenditure Sales $100,000
Because they result in higher prices than perfect competition, monopolies are often blamed by policymakers for causing inflation, where inflation is a persistent increase in the general price level. Is it appropriate to assign such blame to monopolies? Explain.
What are the advantages of the Herfindahl index over concentration ratios in measuring the degrees of concentration in an industry? (b) What is the disadvantage of both?
Even if firms in a monopolistically competitive market collude successfully and fix price, economic profit will still be competed away. Explain (include an explanation of economic profit in your explanation). Will price be higher or lower under such an agreement in long-run equilibrium than would be the case if firms didn't coll
1. Suppose a monopolist could perfectly price discriminate (i.e., this would be 1st degree price discrimination). Compare the consumer surplus, producer surplus, and total surplus in this situation to those same measures in a perfectly competitive market. 2. In a large number of cities around the world, the local, tax-support
The pizza market is divided as follows: Pizza hut 20.7% Domino's 17.0 Little Caesar's 6.7 Pizza Inn 2.2 Round Table 2.0 All others 51.4 a. How would you describe its market structure? b. What is the approximate Herfindahl index? c. What is the four-firm concentration ratio?
A firm that faces the entire demand curve of an industry would be a/an: a. perfect competitor b. monopolist. c. monopolistic competitor d. oligopolist
Explain what natural monopoly is in terms of the relationship between cost curves and the demand curve. If the market is left to itself, what price and output will result?
Studies have concluded that the deadweight loss of monopoly power in the US is less than 0.5 percent of GNP. From your knowledge of the determinants of the deadweighlt loss, explain why such a small figure is plausible.
Explain why a certain triangular area is a measure of the deadweight loss of monopoly. What information do you require in order to calculate the size of this triangle?