uestion 13 The table below presents the demand schedule and marginal costs facing a monopolist producer. Copy and paste the table into the answer area. Then complete all questions. a. Fill in the total revenue and marginal revenue columns. b. What is the profit-maximizing level of output? ( c. What price will the monopolist charge for the quantity in part b? ( Quantity 0 1 2 3 4 5 6 7 8 9 10 For the toolbar, press ALT F10 (PC) or ALT+FN+F10 (Mac) Price ($) 12 11 10 9 8 7 6 5 4 3 2 Total Revenue ($) Marginal Revenue ($) Marginal Cost (3) 3 3 3 3 3 3 3 3 3 3

uestion 13 The table below presents the demand schedule and marginal costs facing a monopolist producer. Copy and paste the table into the answer area. Then complete all questions. a. Fill in the total revenue and marginal revenue columns. b. What is the profit-maximizing level of output? ( c. What price will the monopolist charge for the quantity in part b? ( Quantity 0 1 2 3 4 5 6 7 8 9 10 For the toolbar, press ALT F10 (PC) or ALT+FN+F10 (Mac) Price ($) 12 11 10 9 8 7 6 5 4 3 2 Total Revenue ($) Marginal Revenue ($) Marginal Cost (3) 3 3 3 3 3 3 3 3 3 3

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that the restaurant industry in Honolulu is monopolistically competitive and is currently in Stage 2 equilibrium (firms currently make zero profit). The graph below shows the cost curves for a typical restaurant in this industry. (a) Draw a demand curve and an MR that is consistent with this market being in Stage 2 equilibrium. (b) Show the equilibrium price Now suppose an highly-infectious new virus comes to the island, causing demand for restanrant meals to shift in. (c) What would you expect this change in restaurant demand when the number of firms is fixed? Explain. (d) What would you expect the change in demand to do to the number of meals sold, prices and profits of firms in the long run if firms can enter and exit? What happens to the mumber of restaurants?
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A monopolist is faced with the following cost and revenue curves:(picture) a.What is the maximum-profit price and output,total revenue, total cost and profit? b.If the monopolist were ordered to produce 300 units, what would be the market price and how much profit would now be made c.If the monopolist were faced with the same demand, but average costs were constant at £60 per unit, what output would maximise profit? What would be the price now?................................................................................................. (j) How much profit would now be made? ................................................................................... (k) Assume now that the monopolist decides not to maximise profits, but instead sets a price of £40. How much will now be sold? .................................................................................................................................................. (l) What is the marginal revenue at this…
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