4. Consider a monopoly facing the demand Q = 100-5P with the cost function C = 100+2q². a Find the monopoly price and monopoly output. b Find the monopoly profit in the short run. с Will there be adjustment in the long run? Discuss.

How can a monopolist identify the profit-maximizing level of output if it knows its total revenue and total cost curves?

How does the quantity produced and price charged by a monopolist compare to that of a perfectly competitive film?

Suppose the market for Hula Hoops is monopolized by a single firm. a. Draw the initial equilibrium for such a market. b. Now suppose the demand for Hula Hoops shifts outward slightly. Show that, in general (contrary to the competitive case), it will not be possible to predict the effect of this shift in demand on the market price of Hula Hoops. c. Consider three possible ways in which the price elasticity of demand might change as the demand curve shifts: It might increase, it might decrease, or it might stay the same. Consider also that marginal costs for the monopolist might be increasing, decreasing, or constant in the range where MR=MC Consequently, there are nine different combinations of types of demand shifts and marginal cost slope configurations. Analyze each of these to determine for which it is possible to make a definite prediction about the effect of the shift in demand on the price of Hula Hoops.

In the middle of the twentieth century, major U.S. cities had multiple competing city bus companies. Today, there is usually only one and it runs as a subsidized, regulated monopoly. What do you suppose caused the change?

If a monopoly firm is earning profits, how much would you expect these profits to be diminished by entry in the long run?

What is a natural monopoly?