Suppose that for a monopolist, MR=MC=$10 and P=$15 at the profit-maximizing level of output. At this level of output, the firm A. Is earning profit B will shut down if AVC>$15 C is making $5 profit on each unit sold D will shut down if ATC>$15 E is losing $5 per unit produced
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- The demand schedule of Karachi electric (KE) (known as monopolist) is given as below. You needto find the missing values using TR-TC & MR-MC approaches to analyze its cost of productionand profit maximizing point.Output Price Total Cost Total Revenue MC MR0 Rs.24 Rs.101 21 142 18 203 15 284 12 385 9 50a. Find the missing values of Total Revenue columnb. Find the output level that maximizes the firm's profit, using TR-TC approachc. What price should the firm set to achieve maximum profit?d. Complete the final two columns to verify that the same conclusions are reached using theMR = MC rule.e. Compare both the results and comment on the business and its positionThe demand curve faced by monopolist and his total cost functions are given below;Demand function; Q = 3000 – 60PTotal Cost function; TC = 100 +5Q+1/480Q2 “Compare to perfect competitive producer, the monopolist is misused scare resources” Explain using suitable grapesA monopolist serves a market with five potential buyers, each of whom would buy at most one piece of the monopolist's good. Anna would be willing to pay up to £80 for it, Bob up to £90, Chloe up to £100, Dave up to £110 and Elizabeth up to £120. The monopolist's variable cost function is given in below table. Quantity Variable Costs 1 3. 4. 40 90 150 220 300 Price Marg. Revenue a) Indicate in the table which price the monopolist would want to charge for each given quantity. b) Find the marginal revenue for each quantity. c) Find the monopolist's profit maximising price under the assumption that he wants to produce anything at all. d) How large can the monopolist's fixed costs be such that he still wants to start producing at 1. D Focus 9°C Sun
- if a natural monopolist practices perfect price disrimination, how does it affect the profit-maximizing level of output, consumer surplus, producer surplus, total surplus, and deadweight loss? explain with a diagram.Price or Cost (per unit) $13 12 11 10 8 5 3 2 1 2 3 4 5 Quantity (units per hour) MC ATC MR Demand Refer to the figure. If this monopolist were forced to behave as if it operated in perfect competition, the profit-maximizing rate of output would beThe figure shows the demand curve faced by a monopolist. What is the price effect of a price increase from $3 to $5? OA. $800 OB. $400 OC. $1,000 OD. $200 C Price (5) 10 9 8 17 6 3 2 1 0 100 200 300 400 500 600 700 800 900 Quantity (units)
- What is the marginal revenue and marginal cost for the above monopolist at 3 units of output? A) MR is $14 and MC is $4 B) MR is $2 and MC is $21 C) MR is $10 and MC is $4 D) MR is $14 and MC is $21$30 MC ATC $20 $10 MR Demand 10 20 30 40 Quantity (in Thousands per Month) What is the maximum profit per month that the monopolist will be able to earn according to the graph? zero approximately $20,000 approximately $50,000 Oapproximately $100,000 Price19. Firm A is monopolist in x market, and it consumes one unit of y in order to produce one unit of x. It costs 5 + py TL to produce one unit of x. (py is the price of product y.) y is produced by a monopolist, B, and it costs 5 TL to produce one unitf of y. The demand for x is defined by px = 50-qx (px product price, qx quantity demanded). a) Assume that px is set by Firm A and py is set by Firm B. What would be the equilibrium prices for products x and y? Calculate Firm A and B's profits. b) Assume that Firms A and B merge together. What would be the equilibrium prices for products x and y? Calculate the profits of the new firm. c) Would the merger between A and B increase the consumer surplus? Why (not)?
- Currently, a monopolist’s profit-maximizing output is 400 units per week and it sells its output at a price of $60 per unit. The firm’s total costs are $10,000 per week. The firm is maximizing its profit, and it earns $40 in extra revenue from the sale of the last unit produced each week. a. What is firm's ATC.Suppose the inverse demand for a monopolist’s product is given by P = 70-0.5Q. The monopolistcan produce output in two plants. The marginal coat of producing in plant 1 is MC1 = 3Q1 and themarginal cost of producing in plant 2 is MC2 = Q2. How much output should be produce in eachplat to maximize profit? And what price should be charged?Compare to perfect competition, monopolist charged higher price and supply less quantity withlong run firm equilibrium. Discuss using suitable graph.Explain the deadweight loss of monopolizationA monopolist serves a market with five potential buyers, each of whom would buy at most one piece of the monopolist’s good. Anna would be willing to pay up to £80 for it, Bob up to £90, Chloe up to £100, Dave up to £110 and Elizabeth up to £120. The monopolist’s variable cost function is given in below table: Quantity 1 2 3 4 5 Variable Costs 40 90 150 220 300 Price Marg. Revenue a) Indicate in the table which price the monopolist would want to charge for each given quantity. [10% of points] b) Find the marginal revenue for each quantity. [10% of points] c) Find the monopolist’s profit maximising price under the assumption that he wants to produce anything at all. [10% of points] d) How large can the monopolist’s fixed costs be such that he still wants to start producing at all? [10% of points] I beg my bros, can you answer this for me, its been a rough day and im just a poor student id very much appricate this
