Order Your Paper From the most reliable Essay writing Service. 

.

 



Question: Consider this monopoly market  Demand: P = 100 - Q  Total Cost: TC = 20 + 0.01Q^3 + Q  a) Find th...

Show transcribed image text Consider this monopoly market Demand: P = 100 – Q Total Cost: TC = 20 + 0.01Q^3 + Q a) Find the equilibrium in this market. What is monopolist's profit (or loss) at the equilibrium? What is consumer surplus at the equilibrium? b) If the monopolist replicates the competitive equilibrium (so that MC = P), find the equilibrium in this market. What is monopolist's profit (or loss) at the equilibrium? What is consumer surplus at the equilibrium? c) Suppose the monopolist uses block pricing. In total it sells the quantity that would be sold at the competitive equilibrium, but it sets the price as follows: $80 per unit for the first 20 units $56.85 per unit after 20 units What is monopolist's profit (or loss) at the equilibrium at the equilibrium? d) Suppose the monopolist further refines its block pricing It now sets the price as follows $85 per unit for the first 10 units $75 per unit for the second 10 units $65 per unit for the third 10 units surplus $56.85 per unit after 30 units What is monopolist's profit (or loss) at the equilibrium? What is consumer surplus at the equilibrium? e) Suppose the monopolist uses a two-part tariff. It replicates the competitive equilibrium but consumers are required to pay a fee for the right to purchase the product. What is the optimal fee to charge? What is monopolist's profit (or loss) at the equilibrium? What is consumer surplus at the equilibrium?

Consider this monopoly market Demand: P = 100 – Q Total Cost: TC = 20 + 0.01Q^3 + Q a) Find the equilibrium in this market. What is monopolist's profit (or loss) at the equilibrium? What is consumer surplus at the equilibrium? b) If the monopolist replicates the competitive equilibrium (so that MC = P), find the equilibrium in this market. What is monopolist's profit (or loss) at the equilibrium? What is consumer surplus at the equilibrium? c) Suppose the monopolist uses block pricing. In total it sells the quantity that would be sold at the competitive equilibrium, but it sets the price as follows: $80 per unit for the first 20 units $56.85 per unit after 20 units What is monopolist's profit (or loss) at the equilibrium at the equilibrium? d) Suppose the monopolist further refines its block pricing It now sets the price as follows $85 per unit for the first 10 units $75 per unit for the second 10 units $65 per unit for the third 10 units surplus $56.85 per unit after 30 units What is monopolist's profit (or loss) at the equilibrium? What is consumer surplus at the equilibrium? e) Suppose the monopolist uses a two-part tariff. It replicates the competitive equilibrium but consumers are required to pay a fee for the right to purchase the product. What is the optimal fee to charge? What is monopolist's profit (or loss) at the equilibrium? What is consumer surplus at the equilibrium?