You are the manager of a monopoly. A typical consumer’s inverse demand function for your firm’s product is P = 250 − 40Q, and your cost function is C(Q) = 10Q. a. Determine the optimal two-part pricing strategy. b. How much additional profit do you earn using a two-part pricing strategy compared with charging this consumer a per-unit price?
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- You are the manager of a monopoly. Your analytics department estimates that a typical consumer’s inverse demand function for your firm’s product is P = 200 − 20Q, and your cost function is C(Q) = 80Q.a. Determine the optimal two-part pricing strategy. Per-unit fee: $ Fixed fee: $ b. How much additional profit do you earn using a two-part pricing strategy compared with charging this consumer a per-unit price?You are the manager of a monopoly. Your analytics department estimates that a typical consumer's inverse demand function for your firm's product is P = 300-20 Q, and your cost function is C(Q) = 60Q. a. Determine the optimal two - part pricing strategy. Per - unit fee: $ Fixed fee: $b. How much additional profit do you earn using a two - part pricing strategy compared with charging this consumer a per- unit price?You are the manager of a monopoly. Your analytics department estimates that a typical consumer's inverse demand function for your firm's product is P = 350-20Q, and your cost function is C(Q) = 70Q. a. Determine the optimal two - part pricing strategy. Per-unit fee: $ Fixed fee: $ b. How much additional profit do you earn using a two-part pricing strategy compared with charging this consumer a per- unit price? $
- You are the manager of a monopoly. A typical consumer's inverse demand function for your firm's product is P= 250-400, and your cost function is aQ) = 10Q. a. Determine the optimal two-part pricing strategy. Per-unit fee: $ Fixed fee: $ b. How much additional profit do you earn using a two-part pricing strategy compared with charging this consumer a per-unit price? $You are the manager of a monopoly, and your demand and cost functions are given by P = 300 − 3Q and C(Q) = 1,500 + 2Q2, respectively. a. What price–quantity combination maximizes your firm’s profits? b. Calculate the maximum profits. c. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price–quantity combination? d. What price–quantity combination maximizes revenue? e. Calculate the maximum revenues. f. Is demand elastic, inelastic, or unit elastic at the revenue-maximizing price–quantity combination?You are the manager of a monopoly that faces an inverse demand curve of P = 10 − Q and has a cost function of C(Q) = 2Q. The government is considering legislation that would regulate your price at the competitive level. What is the maximum amount you would be willing to spend on lobbying activities designed to stop the regulation?
- You are the manager of a monopolistic firm, and your demand and cost functions are given by P = 300 − 3Q and TC(Q) = C(Q) = 1,500 + 2Q2, What is the MR of the firm? What is the MC of the firm? Determine the profit maximizing level of price and output? How much profit will the monopolist make?You are the manager of a pizzeria that produces at a marginal cost of $6 per pizza. The pizzeria is a local monopoly near campus (there are no other restaurants or food stores within 500 miles). During the day, only students eat at your restaurant. In the evening, while students are studying, faculty members eat there. If students have an elasticity of demand for pizzas of −4 and the faculty has an elasticity of demand of −2, what should your pricing policy be to maximize profits?Consider a monopoly that faces the demand curve P = 20 − Q, and has the marginal cost curve MC = 2. a) Use the demand curve to find the equation of the marginal revenue curve. b) Find the profit-maximizing price and quantity for this monopoly if the monopoly uses uniform pricing. What is the producer surplus? c) Now, suppose the monopoly wants to increase profits using block pricing. The total cost the monopoly incurs is T C = 2Q. Find the optimal quantities, Q1 and Q2, and their corresponding optimal prices, P1 and P2 that maximize profits using a two-block pricing scheme. What is the new producer surplus? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- Consider a monopoly market with demand curve Q(P) = . Suppose that producing a good costs $1 per unit and the firm must produce at least 1 unit by law. (1) What is the elasticity of demand? (2) How much would the monopolistic firm produce?You are the manager of a monopoly. Your analytics department estimates that a typical consumer's Inverse demand function for you firm's product is P= 100 -400, and your cost function is a = 200. a. Determine the optimal two-part pricing strategy. Per-unit fee: $ 20 Fixed fee: $ b. How much additional profit do you earn using a two-part pricing strategy compared with charging this consumer a per-unit price?You are the manager of a monopoly. Your analytics department estimates that a typical consumer's inverse demand function for your firm's product is P= 400 -20Q, and your cost function is CQ) = 120Q a. Determine the optimal two-part pricing strategy. Per-unit fee: $ 120 Fixed fee: $ b. How much additional profit do you earn using a two-part pricing strategy compared with charging this consumer a per-unit price?