A movie monopolist sells to college students and other adults. The demand function for students is Q = 1,800-25P, and the demand function for other adults is Q=2,400-25P. The marginal cost is $2 per ticket. Instructions: Round your answers to 2 decimal places. a. What is the effect of price discrimination on consumer and aggregate surplus? CS=$ 42925 AS = $ 128775 b. What is the effect without price discrimination on consumer and aggregate surplus? CS=$ 42025 AS $126075
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- A movie monopolist sells to college students and other adults. The demand function for students is Q1,800-25P, and the demand function for other adults is Q=2,400-25P. The marginal cost is $2 per ticket. Instructions: Round your answers to 2 decimal places. a. What is the effect of price discrimination on consumer and aggregate surplus? CS=$ AS = $ b. What is the effect without price discrimination on consumer and aggregate surplus? CS = $ AS = $Question 5: Jimmy has a room that overlooks, from some distance, a major league baseball stadium. He decides to rent a telescope for $50 a week and charge his friends and classmates to use it to peep at the game for 30 seconds. He can act as a monopolist for renting out "peeps". For each person who takes a 30 second peep, it costs Jimmy $.20 to clean the eyepiece. Jimmy believes he has the following demand for his service: Price of a Peep $1.20 Quantity of peeps demanded 1.00 90 100 150 200 250 300 70 60 50 350 40 30 400 450 20 10 500 550 a) For each price, calculate the total revenue from selling peeps and themarginal revenue per peep. Price Quantity TR MR $1.20 100 90 100 150 200 70 250 60 300 350 50 40 30 400 450 20 500 10 550 b) At what quantity will Jimmy's profit be maximized? What price will he charge? What will his total profit be? c) Jimmy's landlady complains about all the visitors coming into the building and tells Jimmy to stop selling peeps. Jimmy discovers, though, if he…The table shows the demand schedule of a monopolist. Calculate marginal revenue and fill in the revenue column in the table. Assume that output can only be sold in integer amounts (i.e., 11 unit, 22 units, etc.). Once you have filled in marginal revenue, identify the quantity produced by the monopolist in this market. Quantity Price Marginal Marginal Cost Revenue 1 $13 $3 MR1 2 $12 $4 MR2 3 $11 $5 MR3 4 $10 $6 MR4 $9 $7 MR5 6. $8 $8 MR6 How many units does the monopolist produce? Quantity:
- Economics Please type your NUMERICAL answer in the space below. ENTER ONLY THE NUMBER. IF answers are in decimals, please round the number to one decimal point. A monopoly has the following total cost function and demand functions TC=20Q P=400-Q. Suppose that monopoly decides to practice 2nd degree price discrimination, as follows: it charges $360 for the first 40 units of output and $320 for the next 20 units. What is monopoly's profit with 2nd degree price discrimination? a Profits= b. What is Consumer Surplus? CS= C. What is Deadweight Loss? DWL=The table shows the demand schedule of a monopolist. Calculate marginal revenue and fill in the revenue column in the table. Assume that output can only be sold in integer amounts (i.e., 1 unit, 2 units, etc.). Once you have filled in marginal revenue, identify the quantity produced by the monopolist in this market. Not all numbers in the answer bank will be used. Quantity Price Marginal cost Marginal revenue 1 $13 $3 $13 Answer Bank 2 $12 $4 $6 $8 $4 3 $11 $5 $9 $1 $2 $11 $5 4 $10 $6 $9 $7 $3 $10 $0 $12 $7 $8 $8 How many units does the monopolist produce? unitsSuppose you are a monopolist and you have two customers, A and B. Each will buy either zero or one unit of the good you produce. A is willing to pay up to $35 for your product; B is willing to pay up to $10. You produce this good at a constant average and marginal cost of $8. If you could not engage in third-degree price discrimination, what price would you charge? OA $10. OB. $15. OC. $35. OD. $45. If you could practice third-degree price discrimination, you will earn a profit of $ (For simplicity, assume that if a consumer is indifferent between buying and not buying, he will buy.) Click to select your answer(s)
- Review the graph at right for a nonlinear price discriminating monopolist relying on two prices, $80 and $60. The firm charges a price of $80 for the first 20 units, then a price of $60 for the next 20 units. How much is the total consumer surplus in the market with this form of price discrimination? $(round your answer to the nearest penny) How much is the total producer surplus in the market with this form of price discrimination? $(round your answer to the nearest penny) Price 1 100 90 80 70- 60 50 40 30 20 10- 0 10 20 30 40 50 60 70 80 Quantity MC D 90 100The table shows the demand schedule of a monopolist. Calculate marginal revenue and fill in the revenue column in the table. Assume that output can only be sold in integer amounts (i.e., 1 unit, 2 units, etc.). Once you have filled in marginal revenue, identify the quantity produced by the monopolist in this market. Not all numbers in the answer bank will be used. Quantity Price Marginal cost Marginal revenue 1 $13 $1 Answer Bank $12 $2 $3 $6 $1 $5 $10 3 $11 $3 $0 $7 $8 $9 $12 4 $10 $4 $13 $11 $2 $4 5 $9 $5 6. $8 $6 %24Exercise 3.8. Dayna's Doorstops, Inc. (DD) is a monopolist in the doorstop industry. Its cost is C = 100 - 5Q + Q², and demand is P = 55 - 2Q. a) solved b) solved c) solved d) Suppose the government, concerned about the high price of doorstops, sets a maximum price at $27. How does this affect price, quantity, consumer surplus, and DD's profit? What is the resulting deadweight loss? e) Now suppose the government sets the maximum price at $23. How does this decision affect price, quantity, consumer surplus, DD's profit, and deadweight loss? f) Finally, consider a maximum price of $12. What will this do to quantity, consumer surplus, profit, and deadweight loss?
- Graphically show a monopoly firm that currently sells 250 units of output at a price of $60/unit, where the marginal revenue of the 250th unit is $40, the marginal cost of the 250th unit is $50, and the average total cost at 250 units is $60. [Hint: Based on the information given, is the quantity you’re asked to show the profit-maximizing quantity? Think about what has to be true for profit-maximization.] Based on the graph and assuming the firm attempts to profit maximize (and succeeds), what would happen to price, quantity, MR, MC, and ATC? (rise, fall, or stay the same?)A profit-maximizing monopolist sells its goods to two different countries. In one country it faces demand as p1 180 – 2q2. Its marginal cost is 2qi. If the monopoly were to charge different prices in these markets, in which market it can charge a higher price, explain using elasticity. Calculate CS, PS, and DWL. What would be the price if the firm were to 120 – q, and in other country it faces demand as P2 charge one price for both markets.The table below shows the demand and total revenue for a monopolist. Fill in the "Marginal Revenue" column for the various prices and quantities. Instructions: Enter your answer as a whole number. If you are entering a negative number include a minus sign. Demand and Revenues Price (dollars) Quantity Demanded Total Revenue (dollars) Marginal Revenue (dollars) $250 0 $0 — 225 20 4,500 $ 200 40 8,000 175 60 10,500 150 80 12,000 125 100 12,500 100 120 12,000