Suppose you are given the following demand schedule facing a monopolist who sells pens; Price S...

 

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Suppose you are given the following demand schedule facing a monopolist who sells pens; Price S Quantity Price $ Quantity 4.5 4 3.5 7 6.5 6 5.5 5 7 6.5 655 4.5 4 3.5 3 2.5 Total revenue 4.5 12 165 22 22,5 0 Assume there are no other costs besides the incremental cost associated with producing pens. If it costs the monopolist $2 to purchase a unit of input and pay each worker in order to produce each unit of output, fill in the grid below and determine what price the monopolist should set for her product. TR/Q Price S Profit 24 2).5 24 1 2 3 4 Average Revenue 3 ។ 3 k 7 8 9 3 2.5 13 IL 9 5 6 7 8 9 ATR/AQ Marginal Marginal Total Revenue Cost Cost O How might the business mitigate the harmful impact of the tariff? Suppose you are told that the input unit used to produce the pens is imported. Determine what happens to the optimal price, production, revenue and profit if there is a nominal tariff of $1 imposed on each unit of the input good. Suppose you are given the following demand schedule facing a monopolist who sells pens; Price S Quantity Price $ Quantity 4.5 4 3.5 7 6.5 6 5.5 5 7 6.5 655 4.5 4 3.5 3 2.5 Total revenue 4.5 12 165 22 22,5 0 Assume there are no other costs besides the incremental cost associated with producing pens. If it costs the monopolist $2 to purchase a unit of input and pay each worker in order to produce each unit of output, fill in the grid below and determine what price the monopolist should set for her product. TR/Q Price S Profit 24 2).5 24 1 2 3 4 Average Revenue 3 ។ 3 k 7 8 9 3 2.5 13 IL 9 5 6 7 8 9 ATR/AQ Marginal Marginal Total Revenue Cost Cost O How might the business mitigate the harmful impact of the tariff? Suppose you are told that the input unit used to produce the pens is imported. Determine what happens to the optimal price, production, revenue and profit if there is a nominal tariff of $1 imposed on each unit of the input good.

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A demand schedule most commonly consists of two columns The first column lists a price for a product ... View the full answer