AGRI 3500-W1 Quiz4

The following table represents a monopoly's total cost and total revenue at different output levels. What is the fixed cost when producing 20 units? Type your numeric answer and submit 19 Output (units) 0 5 10 15 20 25 Total Cost ($) 19 20 22 25 40 70 Total Revenue ($) 0 20 30 35 40 42

QUESTION 2: WORD LIMIT – MAXIMUM 500 WORDS Using the Monopoly model, show using diagrams how a monopolist may sustain abnormal profits for the indefinite future. Should the competition commission litigate against firms who have a dominant market position? In your answer, make sure you use a diagram, list the assumptions for the model, and give examples of real world markets that may be dominated by monopolists. The diagram used should be your own and not taken from another source. (

18. What does it mean when a company is a monopoly? Hard to join the market, usually only one company that controls prices within the market. What is this? Monopoly is just a board game? I always win. Companies are exempt from government regulations or assistance. Companies do not have to pay federal taxes when it comes to tax season.

Global Gas & Electric, a monopoly operating in the northwest Philippines, is represented in the table below. Global’s executives would not provide you any more information than what's in this table, so you'll have to fill in the blanks. Fill in the table and use it to answer the following question. (The output is measured in thousands of kilowatt hours of electricity.) A. Using the MR = MC rule, what is the profit-maximizing level of output (in thousands of KWHs)?

c) Discuss various ways in which government policymakers might respond to the problems of monopoly.

Question 6 Give an example of a government-created monopoly. Is creating this monopoly necessarily bad public policy? Explain.

The graph shows the demand and cost conditions facing a perfectly competitive industry. If the industry is taken over by a monopoly, what is the deadweight loss that results from the behavior of the monopoly? The deadweight loss that results from the behavior of the monopoly is $ per year. >>> Remember that the quantity given on the x-axis is in thousands of pizzas. (...) 36- 32- 28- 24-23 20- 16- 12- 8- 4- 0- Price and cost (dollars per pizza) 0 12 8 15 MR 8 4 12 16 20 24 Quantity (thousands of pizzas per year) --+ 26 MC D L 28 Q

The following diagram provides demand and cost curves for a product supplied by a natural monopoly. Use the information in the graph to answer the questions below. P ($ per week) 20 15 10 5 7.5 2 D 10 15 6.5 18 20 AFC-ATL-AVC-35-2= 1.5 F=AFC • Q=1.,5x/6.5=24.75 1. This natural monopolist has fixed costs of F = $24.75 0 TR = 1/2 x 18 × 20 = 185 P-ML-24. 0 5 25 30 2 D ATC R=(P-ATC) &Q=(2-35)×18=-27 2. A monopoly that charges a single, profit maximizing price, will earn a profit of π = -27 TC=MCQ = 2x 18 =36. PC=TR²-² TC = 18³-36=144 3. A perfect price discriminating monopoly will earn a profit of π = /44 If the monopolist introduces a two-part tariff, the profit maximizing strategy would be to charge an access fee of M = $ 62 and a user-fee of P = $ per unit. 5. With a profit maximizing two-part tariff, the monopolist would earn a profit of л = $ 6. If the government were to impose a price regulation that capped price at marginal cost, the optimal output strategy of the firm would be Q=…

WORD LIMIT – MAXIMUM 500 WORDS Using the Monopoly model, show using diagrams how a monopolist may sustain abnormal profits for the indefinite future. Should the competition commission litigate against firms who have a dominant market position? In your answer, make sure you use a diagram, list the assumptions for the model, and give examples of real world markets that may be dominated by monopolists. The diagram used should be your own and not taken from another source.