a. If the monopolist maximizes profits, what price does it charge? b. What quantity is produced?...

  

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a. If the monopolist maximizes profits, what price does it charge? b. What quantity is produced? C. What are the monopolist's profits? 2. Molly's blooms, the only florist in town, is a monopoly. Molly faces the following demand schedule: Price 12 11 10 9 8 7 6 5 0 1 2 3 4 Molly's has the following total costs: Quantity Produced 5 Quantity Demanded Total Revenue 0 1 6 7 2 3 4 5 6 7 Total Cost 5 9 12 17 24 34 48 68 Marginal Cost a. Fill in the empty columns in the tables above. Marginal Revenue b. How many bouquets will Molly's produce? c. How much will Molly's charge per bouquet? d. How much is Molly's total revenue? e. What is Molly's total cost? f. What is Molly's total profit? 3. Suppose the market for coffee in Collegetown is dominated by one large monopolist. Market demand for coffee and marginal revenue are given by the equations Qd = 400-P MR 400-2Q where P is the price of coffee (in cents), and Q is the quantity of coffee per day, in thousands. Suppose furthermore that the total cost and marginal cost of producing coffee is given by the equations TC = 20 + 100Q+Q² MC= 100+ 2Q a. If the monopolist maximizes profits, what price does it charge? b. What quantity is produced? C. What are the monopolist's profits? 2. Molly's blooms, the only florist in town, is a monopoly. Molly faces the following demand schedule: Price 12 11 10 9 8 7 6 5 0 1 2 3 4 Molly's has the following total costs: Quantity Produced 5 Quantity Demanded Total Revenue 0 1 6 7 2 3 4 5 6 7 Total Cost 5 9 12 17 24 34 48 68 Marginal Cost a. Fill in the empty columns in the tables above. Marginal Revenue b. How many bouquets will Molly's produce? c. How much will Molly's charge per bouquet? d. How much is Molly's total revenue? e. What is Molly's total cost? f. What is Molly's total profit? 3. Suppose the market for coffee in Collegetown is dominated by one large monopolist. Market demand for coffee and marginal revenue are given by the equations Qd = 400-P MR 400-2Q where P is the price of coffee (in cents), and Q is the quantity of coffee per day, in thousands. Suppose furthermore that the total cost and marginal cost of producing coffee is given by the equations TC = 20 + 100Q+Q² MC= 100+ 2Q

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