A monopoly is considering selling several units of a homogeneous product as a single package. Analysts at your firm have determined that a typical consumer's demand for the product is Qd = 100 -0.5P, and the marginal cost of production is $80. a. Determine the optimal number of units to put in a package. units b. How much should the firm charge for this package? $
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- the supply curve is given Qs= P and the demand curve is given by Qd = P QD = 12 -. 5P Q and mariginal cost is zero 1. there was a monopoly, with the same supply curve. Given the option between selling 6,000, 8,000 and 10,000, which would the monopolist choose? What will the consumer surplus be? 2. Graphically represent the effects of an increase in demand.Give typing answer with explanation and conclusion A monopolist has a demand curve given by P = 88 − Q and a total cost curve given by TC = 34 + Q2. The associated marginal cost curve is MC = 2Q. Suppose the monopolist also has access to a foreign market in which he can sell whatever quantity he chooses at a constant price of 60. How much will he sell in the foreign market? What will his new quantity and price be in the original market?True/False Usually monopoly is inefficient for the consumer.
- A monopolist faces inverse market demand of P = 140 – and has Total Cost given by TC(Q) = 2Q? + 10Q + 200. %3D Find this monopolist's profit maximizing output level. Find this monopolist's profit maximizing price. How much profit is this monopolist earning?Consider a mature maket with a demand given by P=105.4-10Q The cost of production is given by C=10Q For many years this market has been served by a monopolist. How much profit would the firm lose if it is forced to behave as a competitive firm In all your calculations use numbers with 4 decimal places.T/F Monopoly consist of only one firm. Explain too.
- 3. Consider a monopolist who faces the following demand: Demand: P= 100 – 10Q MC= 50+20 a) Find the price quantity combination that maximizes profit for the monopolist. b) Is the firm making positive, negative or zero profits? (100,100) Kareem chooses (60, 105) (500, 400) Saleem chooses Kareem chooses (50,420) 4. Calculate the SPNE/SPNES for the game stated above.a. b. If a firm's the price elasticity of demand (Eg) to be-3.5 and marginal cost (MC) is $15. Using the mark-up rule, what is the optimal price for the firm to charge? If the price elasticity of demand (En) changes to -3.0, and MC is still $15. Use the mark-up rule to find the new optimal price for the firm to charge? What is the defining feature of a Pure Selling Problem and what impact does it have one the firm's goal to maximize profit?Suppose an airline sells air tickets to two types of customer – business travelersand vacation travelers. Their estimated demand elasticities are -2.5 and -4.0respectively.Suppose the marginal cost is constant at $240, and the services provided to thetwo types of customer are similar. Calculate the fares the airline should charge on the air tickets sold to therespective types of customers. Show your calculations.
- A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumer’s demand for the product is Qd = 100 - 0.25P, and the marginal cost of production is $140.a. Determine the optimal number of units to put in a package. unitsb. How much should the firm charge for this package?$There is a monopoly on milk in Quebec.Imagine there are only two kinds of milk consumers in Quebec. For one kind consumer,if they purchase q liters of milk at cost π they get utility 13√q − π. For the other kind, if they purchase q liters of milk at cost π they get utilty 24√q − π.What is the optimal selling plan for the milk monopoly? They must choose both thepackage sizes and payments.When selling downloadable software, e-books, and music streaming platforms, the marginal cost of making one more unit is basically zero. The average total cost is currently $1 per book. If a monopoly is operating in this market and is maximizing profits, marginal revenue is Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a Greater than $0 Less than $0 $0 d $1 e There is not enough information to answer this question.