Each calculation and question is worth 2 points for a total of 20 points on the assignment.
Question:
Each calculation and question is worth 2 points for a total of 20 points on the assignment. Quantity, Price, and TC are given. Calculations for TR, MR, MC, and Profit/Loss are needed.
Q P TR MR TC MC PROFIT/LOSS
0 X X X $100 X
1 $138 150
2 125 184
3 113 208
4 100 227
5 88 250
6 75 280
7 63 318
8 50 366
Using the above cost schedules and price calculate TR, MR, MC and profit/Loss. Use to and questions #1 and #2.
1. State the firm’s profit maximizing output level. _____________
2. State the price this monopolist will charge. _____________
3. State the 3 conditions necessary for the monopolist to price discriminate. 1.____________________________________________________________________ 2.____________________________________________________________________ 3. ___________________________________________________________________ Give one example of price discrimination. _____________________________________
4. State 3 reasons or barriers to entry for a monopolist. 1. __________________________________________________________________ 2. __________________________________________________________________ 3. __________________________________________________________________
5. As a monopolist lowers the price will demand become more elastic or inelastic on the demand curve? ____________________
6. If both a perfectly competitive firm and a monopolist are operating a profit-maximizing output level; which of the 2 market structures will produce a greater level of output? ________________
Macroeconomics Principles, Applications, and Tools
ISBN: 978-0132555234
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez