monopoly sells its good in the U.S. and Japanese markets. The American inverse demand function is Pa = 90-Q₂₁ nd the Japanese inverse demand function is P₁ = 80-2Q;, here both prices, på and p₁, are measured in dollars. The firm's marginal cost of production is m = $25 in both countries. If the firm can prevent resales, what price will it charge in both arkets? (Hint: The monopoly determines its optimal (monopoly) price in each country separately because customers cannot resell the good.) The equilibrium price in Japan is $. (round your answer to the nearest penny) The equilibrium price in the U.S. is S. (round your answer to the nearest penny)

monopoly sells its good in the U.S. and Japanese markets. The American inverse demand function is Pa = 90-Q₂₁ nd the Japanese inverse demand function is P₁ = 80-2Q;, here both prices, på and p₁, are measured in dollars. The firm's marginal cost of production is m = $25 in both countries. If the firm can prevent resales, what price will it charge in both arkets? (Hint: The monopoly determines its optimal (monopoly) price in each country separately because customers cannot resell the good.) The equilibrium price in Japan is $. (round your answer to the nearest penny) The equilibrium price in the U.S. is S. (round your answer to the nearest penny)

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter14: Monopoly

Section: Chapter Questions

Problem 14.9P

See similar textbooks

Similar questions

A monopoly sells its good in the U.S. and Japanese markets. The American inverse demand function is Pa = 120 - Q3. and the Japanese inverse demand function is Pj = 100 - 20j. where both prices, P, and p, are measured in dollars. The firm's marginal cost of production is m = $20 in both countries. If the firm can prevent resales, what price will it charge in both markets? (Hint. The monopoly determines its optimal (monopoly) price in each country separately because customers cannot resell the good.) The equilibrium price in Japan is $ | (round your answer to the nearest penny) The equilibrium price in the U.S. is S | (round your answer to the nearest penny)
A monopoly sells its good in the U.S. and Japanese markets. The American inverse demand function is Pa = 90-Qa' and the Japanese inverse demand function is P₁ = 80 - 2Q;, where both prices, på and p₁, are measured in dollars. The firm's marginal cost of production is m = $25 in both countries. If the firm can prevent resales, what price will it charge in both markets? (Hint: The monopoly determines its optimal (monopoly) price in each country separately because customers cannot resell the good.) The equilibrium price in Japan is $ 52.50. (round your answer to the nearest penny) The equilibrium price in the U.S. is $. (round your answer to the nearest penny)
A monopoly sells its good in the U.S. and Japanese markets. The American inverse demand function is Pa = 120-Q₂. and the Japanese inverse demand function is P₁ = 100-2Q₁ where both prices, p, and p,, are measured in dollars. The firm's marginal cost of production is m = $20 in both countries. If the firm can prevent resales, what price will it charge in both markets? (Hint: The monopoly determines its optimal (monopoly) price in each country separately because customers cannot resell the good.) The equilibrium price in Japan is $. (round your answer to the nearest penny)
Consider the relationship between monopoly pricing and the price elasticity of demand. If demand is inelastic and a monopolist raises its price, quantity would fall by a ▼. Therefore, a monopolist will Use the purple segment (diamond symbols) to indicate the portion of the demand curve that is inelastic. (Hint: The answer is related to the marginal- revenue (MR) curve.) Then use the black point (plus symbol) to show the quantity and price that maximizes total revenue (TR). Price 10 9 CO 7 6 S E 2 0 -2 Demand Search percentage than the rise in price, causing profit to produce a quantity at which the demand curve is elastic. Marginal Revenue 86 Inelastic Demand e + Max TR C ? (CC Speaker/Headph A
If a monopoly faces an inverse demand curve of p=450-Q, has a constant marginal and average cost of $30, and can perfectly price discriminate, what is its profit? What are the consumer surplus, welfare, and deadweight loss? How would these results change if the firm were a single-price monopoly? Profit from perfect price discrimination () is $88200. (Enter your response as a whole number.) Corresponding consumer surplus is (enter your response as whole numbers): welfare is and deadweight loss is Profit from single-price profit-maximization is = $44100. (Enter your response as a whole number.) Corresponding consumer surplus is (enter your response as whole numbers): welfare is and deadweight loss is CS = $0 W = $ 88200 DWL = $0. CS = $ 22050 W = $ 66150 DWL = $ 22050
The demand a monopoly faces is p = 400 - Q+A 0.5 where Q is its quantity, p is its price, and A is the level of advertising. Its marginal cost of production is $40, and its cost of a unit of advertising is $1. What is the firm's profit equation? The monopoly's profit equation (л) as a function of Q and A is π= (400-Q+A05) Q-40Q-A. (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a superscript can be created with the ^ character.) The monopoly's profit-maximizing price is p = $270, quantity is Q = 260, and advertising is A = 16900. (Enter numeric responses using real numbers rounded to two decimal places.)
If a monopoly faces an inverse demand curve of p=330-Q, has a constant marginal and average cost of $90, and can perfectly price discriminate, what is its profit? What are the consumer surplus, welfare, and deadweight loss? How would these results change if the firm were a single-price monopoly? Profit from perfect price discrimination () is $ 28800. (Enter your response as a whole number.) Corresponding consumer surplus is (enter your response as whole numbers): welfare is and deadweight loss is CS=$ W = $ DWL = $ A
If the inverse demand curve is p=100-Q and the marginal cost is constant at $10, how does charging the monopoly a specific tax of t= $12 per unit affect the monopoly optimum and the welfare of consumers, the monopoly, and society (where society's welfare includes the tax revenue)? What is the incidence of the tax on consumers? As a result of the tax, the profit-maximizing quantity decreases by 6 units and the profit-maximizing price increases by $6. (Enter numeric responses using real numbers rounded to two decimal places.) Show Transcribed Text Consumer surplus by $ The monopoly's surplus (producer surplus) Finally, society's welfare by $. The consumer incidence of the tax is%. by S.
Each consumer has the following demand for annual visits to Planet Fitness: Q = 100 - P, where Q is the number of visits to Planet Fitness per year and P is the price per visit. In western Maryland, Planet Fitness has a monopoly on the gym market in the area. If the marginal cost of serving each customer is $10 per visit, what is the optimal two-part tariff that Planet Fitness could charge each customer? Annual fee = $4,050; P = $10 for each visit Annual fee = $5,000; P = $0 for each visit. Annual fee = $4,050; P = $0 for each visit. Annual fee = $5,000; P = $10 for each visit.
#1 A monopoly sells its good in the U.S. and Japanese markets. The American inverse demand function is p = 100 – Q, and the Japanese inverse demand function is p = 80 – 2Q. The firm's marginal cost is MC = 20 in both %3D countries. What price will it charge in both markets if the firm can prevent resale?
Suppose that Intel has a monopoly in the market for microprocessors in Brazil. During the year2005, it faces a market demand curve given by P = 9 - Q, where Q is millions of microprocessorssold per year. Suppose you know nothing about Intel’s costs of production. Assuming that Intelacts as a profit-maximizing monopolist, would it ever sell 7 million microprocessors in Brazil in2005?
If a monopoly faces an inverse demand curve of p=210-Q, has a constant marginal and average cost of $30, and can perfectly price discriminate, what is its profit? What are the consumer surplus, welfare, and deadweight loss? How would these results change if the firm were a single-price monopoly? Profit from perfect price discrimination (x) is $ 16200. (Enter your response as a whole number.) Corresponding consumer surplus is (enter your response as whole numbers): welfare is and deadweight loss is CS=$0, W=$ 16200. DWL=$0. Profit from single-price profit-maximization is = $8100 (Enter your response as a whole number.) Corresponding consumer surplus is (enter your response as whole numbers): welfare is and deadweight loss is CS = $. W=$. DWL=$