The table shows the demand schedule of a monopolist. Calculate marginal revenue and fill in the revenue column in the table. Assume that output can only be sold in integer amounts (i.e., 1 unit, 2 units, etc.). Once you have filled in marginal revenue, identify the quantity produced by the monopolist in this market. Quantity Marginal Cost Marginal Revenue MR₁: MR3: MR5: 1 2 3 نیا 4 5 6 Price $13 $12 $11 $10 $9 $8 $6 $7 $8 $9 $10 $11 How many units does the monopolist produce? MR₁ MR₂ MR3 MR4 MRS MR6 MR₂: MR4: MR6: Quantity:

The table shows the demand schedule of a monopolist. Calculate marginal revenue and fill in the revenue column in the table. Assume that output can only be sold in integer amounts (i.e., 1 unit, 2 units, etc.). Once you have filled in marginal revenue, identify the quantity produced by the monopolist in this market. Quantity Marginal Cost Marginal Revenue MR₁: MR3: MR5: 1 2 3 نیا 4 5 6 Price $13 $12 $11 $10 $9 $8 $6 $7 $8 $9 $10 $11 How many units does the monopolist produce? MR₁ MR₂ MR3 MR4 MRS MR6 MR₂: MR4: MR6: Quantity:

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter19: Elasticity

Section: Chapter Questions

Problem 9QP

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Suppose a movie theater determines that the elasticity of demand for movie tickets is -2.0 for senior citizens and –1.5 for adults under age 65, and the marginal cost is $2 per consumer. Use the Lerner index to determine how much senior citizens should be charged and how much adults under age 65 should be charged. A different movie theater, which faces the same marginal costs, charges consumers $6 for matinee movies and $10 for evening movies. Use the Lerner Index to calculate the price elasticity of demand for matinee consumers and evening consumers.
Question 5: Jimmy has a room that overlooks, from some distance, a major league baseball stadium. He decides to rent a telescope for $50 a week and charge his friends and classmates to use it to peep at the game for 30 seconds. He can act as a monopolist for renting out "peeps". For each person who takes a 30 second peep, it costs Jimmy $.20 to clean the eyepiece. Jimmy believes he has the following demand for his service: Price of a Peep $1.20 Quantity of peeps demanded 1.00 90 100 150 200 250 300 70 60 50 350 40 30 400 450 20 10 500 550 a) For each price, calculate the total revenue from selling peeps and themarginal revenue per peep. Price Quantity TR MR $1.20 100 90 100 150 200 70 250 60 300 350 50 40 30 400 450 20 500 10 550 b) At what quantity will Jimmy's profit be maximized? What price will he charge? What will his total profit be? c) Jimmy's landlady complains about all the visitors coming into the building and tells Jimmy to stop selling peeps. Jimmy discovers, though, if he…
Please no written by hand solution When the price of a trampoline was $636, the quantity demanded was 710 trampolines per month. Later, the price fell to $581, and quantity demanded rose to 784. Using the midpoint formula, what is the price elasticity of demand for this trampoline?
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A telephone company has isolated three distinct demands for its services:Weekdays: Q1=90-0.5P1Holidays: Q2=35-0.25P2Nights: Q3=30-0.2P3TC=25+20Q WHERE Q=Q1+Q2+Q3Show that as a discriminatory monopolist this company will maximize profits by charging the highest price in the market where the price elasticity of demand is lowest, by finding a) the profit maximizing level of outputb)the profit maximizing price and c) the price elasticity of demand in each marketUse Cramer's rule for solving simultaneous equations and the Hessian for the second order conditions
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a) Suppose a movie theater determines that the elasticity of demand for movie tickets is -2.0 for senior citizens and –1.5 for adults under age 65, and the marginal cost is $2 per consumer. Use the Lerner index to determine how much senior citizens should be charged and how much adults under age 65 should be charged. b) A different movie theater, which faces the same marginal costs, charges consumers $6 for matinee movies and $10 for evening movies. Use the Lerner Index to calculate the price elasticity of demand for matinee consumers and evening consumers.
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Johnny Rockabilly has just finished recording his latest CD. The company can produce the CD with no fixed cost and a variable cost of $18 per CD. His record company's marketing department determines that the demand for the CD is as follows: Complete the following table by computing total revenue for each quantity listed and marginal revenue for each 5,000 increase in the quantity sold. Price Total Revenue Marginal Revenue (Dollars) Number of CDs (Dollars) (Dollars) 30 10,000 28 15,000 26 20,000 24 25,000 22 30,000 20 35,000 CDs and a price of . This results in a profit of $ Profit is maximized at a quantity of from the record company. If you were Johnny's agent, you would advise Johnny to demand a recording fee of > a || Desktop 69°F 1O ip
Indicate the four types of pricecompetitive levels.