Exhibit 9-7 Monopolist (dollars) 10 8 6 0 Quantity earn an hourly profit of $240. MR As shown in Exhibit 9-7, in the short run, the monopoly will: MC O suffer an hourly loss of $160. earn an hourly profit of $80. break even (i.e., earn zero economic profit).
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- What economic formula or graph does the Anti-Trust Department follow before they decide to break up a monopoly? Multiple Choice They look to see if MC=MR is beyond $10 billion. They try to calculate if price elasticity is less than .25 and inelastic. They do not use any commonly known formulas or graphs. Often times it is based on normative economics and/or it could be politically motivated. The number of registered consumer complaints must be beyond 10,000.The graph below presents the curves associated with the firm JT Minn.. JT Minn. is a monopolist that produces dishwashers. Move the point on the demand curve to represent the price JT Minn. would charge and the quantity at which they would produce. Price/ Cost (570,$20) (980,$33) Marginal I Revenue I Marginal Cost Demand QuantityQuestion: Discuss the concept of price discrimination and provide examples of industries where it is commonly used.Please Dont use AI tool.
- Describe the hiring decision of a monopolist.In a monopoly type market; the current price is $100.00, the quantity is 10,000, the tax on economic profits 4% of economic profits, the price elasticity of demand (constant) is -2.5, and MC is $60. What is the price with tax for a monopoly market?Economics A monopolist competition firm has MR=MC=50, ATC=40, P= 35 at the current outpur level of 50. 1. Is this market is LR or SR? 2. Does this firm make profits or losses? 3. During thr LR, what is the price of this product for profit maximization?
- The manager of a local monopoly estimates that the elasticity of demand for its product is equal to -4. The firm’s marginal cost is 25. Express the firm’s marginal revenue as a function of its price then determine the profit-maximizing price.True/False Monopoly produces a product that is unique and have no close substitute.(Figure: Electricity Generation). What is this monopolist's maximum profit? Group of answer choices $300 $400 $1000 $810
- 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 monopoly faces a demand elasticity of -5 and marginal cost of $1, what is the optimal monopoly price? (Calculate using the monopoly pricing formula) What is the Lerner index?Price (dollars per movie) Quantity demanded, weekend (movies per week) Quantity demanded, weekday (movies per week 18 0 0 15 100 0 12 200 0 9 300 100 6 400 200 3 500 300 22) Roxie's Movie Theatre has a monopoly and discovers that at $12 a movie, no one is buying movie tickets during weekdays. Roxie's conducts a survey and the table above reveals the results of the survey. Roxie decides to price discriminate between weekend and weekday moviegoers. The marginal cost of a showing a movie is $6. Roxie's charges ________ on weekdays and ________ on weekends. A) $9; $12 B) $6; $15 C) $6; $18 D) $3; $12 23) If a monopolist can perfectly price discriminate, it will A) charge the same price for each unit sold. B) produce until price elasticity of demand equals one. C) not be concerned with the market demand. D) charge a different…