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Principles of Microeconomics
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The following diagram shows the functions for a natural monopoly:
What is the deadweight loss if this monopoly is price regulated?
The diagram below shows a natural monopoly.
If the firm is publicly owned, what price would be charged?
*** Correct answers will receive 1 mark. Incorrect answers will receive -0.75 mark. An answer left blank will receive 0 marks. So decide carefully before you answer.***
The following functions apply to a monopoly:
TC = 1500 + 19Q + 0.06Q2
MC = 19 + 0.12Q
Demand: P = 137 - 0.14Q
The monopolist chooses their profit maximizing quantity.
Calculate their PROFIT.
The table below shows the information about demand and costs for a single-price monopoly.
If this firm maximizes their profit, how much will their profit be?
| Q | P | TC | TR | MR | MC | ATC |
| 0 | 100 | 20 | 0 | |||
| 1 | 95 | 43 | 95 | 95 | 23 | 43.0 |
| 2 | 90 | 68 | 180 | 85 | 25 | 34.0 |
| 3 | 85 | 95 | 255 | 75 | 27 | 31.7 |
| 4 | 80 | 124 | 320 | 65 | 29 | 31.0 |
| 5 | 75 | 155 | 375 | 55 | 31 | 31.0 |
| 6 | 70 | 188 | 420 | 45 | 33 | 31.3 |
| 7 | 65 | 223 | 455 | 35 | 35 | 31.9 |
| 8 | 60 | 260 | 480 | 25 | 37 | 32.5 |
| 9 | 55 | 299 | 495 | 15 | 39 | 33.2 |
| 10 | 50 | 340 | 500 | 5 | 41 | 34.0 |
| 11 | 45 | 383 | 495 | -5 | 43 | 34.8 |
| 12 | 40 | 428 | 480 | -15 | 45 | 35.7 |
| 13 | 35 | 475 | 455 | -25 | 47 | 36.5 |
| 14 | 30 | 524 | 420 | -35 | 49 | 37.4 |
| 15 | 25 | 575 | 375 | -45 | 51 | 38.3 |
| 16 | 20 | 628 | 320 | -55 | 53 | 39.3 |
| 17 | 15 | 683 | 255 | -65 | 55 | 40.2 |
| 18 | 10 | 740 | 180 | -75 | 57 | 41.1 |
| 19 | 5 | 799 | 95 | -85 | 59 | 42.1 |
| 20 | 0 | 860 | 0 | -95 | 61 | 43.0 |
The graph below shows a single price monopoly.
If they choose their optimal quantity, what would be their total revenue?
*** Correct answers will receive 1 mark. Incorrect answers will receive -0.75 mark. An answer left blank will receive 0 marks. So decide carefully before you answer.***
*** Correct answers will receive 1 mark. Incorrect answers will receive -0.75 mark. An answer left blank will receive 0 marks. So decide carefully before you answer.***
Suppose a single-price monopolist increases the price of its good, from $82 to $84. As a result, the number of units they sell decreases from 1290 to 1214. The