Suppose that Jana's Financial Consulting Company is a perfectly price discriminating monopolist with the following cost and revenue information: 0 1 2 Quantity Total Cost Marginal Cost Price Total Revenue Marginal Revenue $100 $170 $140 $160 $184 $150 $230 $140 $280 $130 $335 $120 $395 $110 $475 $100 $575 $95 min 00 6 7 Suppose that Jana's Financial Consulting Company is a perfectly price discriminating monopolistwith the following cost and revenue information:Quantity012134566787.8.9.10.Total Cost Marginal Cost$100$140$184$230a.b.C.d.Given the table above, what is Jana's total revenue when she has 3 clients?$140$420$450$620a.b.C.d.Given the table above, what is Jana's total revenue when she has 7 clients?$650$700$910$1,080a.b.$280$335$395$475$575C.d.Given the table above, what is Jana's average revenue when she has 5 clients?$90$100$120$140Price$170$160$150$140$130$120$110$100$95a.b.Total Revenue Marginal RevenueC.d.Given the table above, what is Jana's profit at her profit-maximizing number ofclients?$325$435$565$1,000

Marginal cost is the additional cost incurred to produce additional units of output. In other…

Suppose that Jana's Financial Consulting Company is a perfectly price discriminating monopolist with the following cost and revenue information: 0 1 2 Quantity Total Cost Marginal Cost Price Total Revenue Marginal Revenue $100 $170 $140 $160 $184 $150 $230 $140 $280 $130 $335 $120 $395 $110 $475 $100 $575 $95 min 00 6 7

Suppose that Jana's Financial Consulting Company is a perfectly price discriminating monopolist with the following cost and revenue information: 0 1 2 Quantity Total Cost Marginal Cost Price Total Revenue Marginal Revenue $100 $170 $140 $160 $184 $150 $230 $140 $280 $130 $335 $120 $395 $110 $475 $100 $575 $95 min 00 6 7

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Monopoly

Section: Chapter Questions

Problem 6.10P

See similar textbooks

Similar questions

Using the Online Self Study Certifications table, answer the following question: What is the maximum revenue for individual pricing? Continuing with the Table of Certificate Programs, complete the Total Revenue for the Bundled Programs: Online Self Certifications for Social Work License Online Self Certifications for Social Work License Customers Certification in Online Counseling 28 TR Counseling Certification as a Group Home Counselor Bundle TR Group Home TR Bundle Segment 1 1000 $190 a $70 e $260 49 4a $255 4c Segment 2 1000 $150 b $90 f $240 4b Ho 6 $195 h $230 4d Segment 3 1000 $95 C $160 Segment 4 1000 $35 P
If a natural monopolist practices perfect price discrimination, how does it affect the profit-maximizing level of output, consumer surplus, producer surplus, total surplus, and deadweight loss? Explain with a diagram.
The following table shows the cost and revenue data for Molly the monopolist. Total Revenue Marginal Revenue Marginal Cost Quantity per Period 0 1 2 3 4 5 6 7 8 Price $30 30 29 AN 28 27 26 25 24 22 20 $ $ Total $ a. Complete the table above. b. What are Molly's profit-maximizing output and price, and what will be the amount of her profit? Output: Price:$ Profit: $ c. Suppose that the demand for Molly's product increased by three units at every price level. Complete the table below. Quantity per Marginal Marginal
Ab 50 Economics An cement making monopolist with a marginal cost curve of MC=Q was originally faced with a demand curve: P=20-2Q. However, due to an increase in demand for housing, demand shifted to: P=35-2Q. Calculate the change in price and quantity due to this shift in demand. a. An increase in P = 9, and increase in Q = 3. b. An increase in P = 12, and increase in Q = 4. c. An increase in P = 21, and increase in Q = 7 d. Impossible to determine with the given information.
Use the following graph of a monopoly market to answer this question: P $13 $10 150 300 Which of the following statements is an accurate interpretation of the graph? This firm engages in perfect price discrimination; 150 of its customers are willing to pay exactly $13, and 150 are willing to pay exactly $10. This firm price-discriminates by selling its product for $13 to the 150 consumers willing to pay at least $13, and selling it for $10 to the 150 consumers willing to pay between $10 and $13. This firm engages in price discrimination by negotiating on price with each of its customers. This firm price-discriminates by selling its product for $13 to the 150 consumers willing to pay at least $13, and selling it for $10 to the 300 consumers willing to pay between $10 and $13. This firm engages in perfect price discrimination; 150 of its customers are willing to pay exactly $13, and 300 are willing to pay exactly $10.
You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Analysts at your firm have determined that group 1’s elasticity of demand is −6, while group 2’s is −2. Your marginal cost of producing the product is $80. a. Determine your optimal markups and prices under third-degree price discrimination. markup for group 1: price for group 1: markup for group 2: price for group 2:
a) Write down three types of price discrimination behavior of a monopolist. What are the basic differences among them?b) Why LRATC curve is u-shaped? Under which market structure, firm operates at the downward sloping part of LRATC? Briefly explain the reason. Don,t copy from anywhere. Answer must be correct.
You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Analysts at your firm have determined that group 1’s elasticity of demand is −3, while group 2’s is −2. Your marginal cost of producing the product is $70.a. Determine your optimal markups and prices under third-degree price discrimination.Markup for group 1: Price for group 1: $ Markup for group 2: Price for group 2: $ b. Which of the following are necessary conditions for third-degree price discrimination to enhance profits. check all that apply At least one group has elasticity of demand less than one in absolute value. We are able to prevent resale between the groups. At least one group has elasticity of demand greater than 1 in absolute value. There are two different groups with different (and identifiable) elasticities of demand.
You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Analysts at your firm have determined that group 1’s elasticity of demand is −3, while group 2’s is −5. Your marginal cost of producing the product is $40. a. Determine your optimal markups and prices under third-degree price discrimination. Markup for group 1: Price for group 1: Markup for group 2: Price for group 2: $ b. Which of the following are necessary conditions for third-degree price discrimination to enhance profits.
4). What example of effective or ineffective price discrimination do you see online or in your community? Explain why the monopolist chooses to follow this business strategy.
Ruth’s Rubies is a single-price monopolist in the market for rubies. Suppose Ruth’s Rubies currently charges $200 for its rubies (i.e. sells 3 rubies). If it lowers the price to $100 (to sell 4 rubies), how large is: The quantity effect? The price effect? Price of a Ruby Quantity of Rubies Demanded Total Revenue Marginal Revenue $500 0 0 400 1 400 400 300 2 600 200 200 3 600 0 100 4 400 200 0 5 0 400
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 ties