A monopolist serves a market with five potential buyers, each of whom would buy at most one piece of the monopolist’s good. Anna would be willing to pay up to £80 for it, Bob up to £90, Chloe up to £100, Dave up to £110 and Elizabeth up to £120. The monopolist’s variable cost function is given in below table: Quantity 1 2 3 4 5 Variable Costs 40 90 150 220 300 Price Marg. Revenue a) Indicate in the table which price the monopolist would want to charge for each given quantity. [10% of points] b) Find the marginal revenue for each quantity. [10% of points] c) Find the monopolist’s profit maximising price under the assumption that he wants to produce anything at all. [10% of points] d) How large can the monopolist’s fixed costs be such that he still wants to start producing at all? [10% of points]
A monopolist serves a market with five potential buyers, each of
whom would buy at most one piece of the monopolist’s good. Anna would be willing to pay up to
£80 for it, Bob up to £90, Chloe up to £100, Dave up to £110 and Elizabeth up to £120. The
monopolist’s variable cost function is given in below table:
Quantity 1 2 3 4 5
Variable Costs 40 90 150 220 300
Price
Marg.
Revenue
a) Indicate in the table which price the monopolist would want to charge for each given
quantity. [10% of points]
b) Find the marginal revenue for each quantity. [10% of points]
c) Find the monopolist’s profit maximising price under the assumption that he wants to
produce anything at all. [10% of points]
d) How large can the monopolist’s fixed costs be such that he still wants to start producing at
all? [10% of points]
I beg my bros, can you answer this for me, its been a rough day and im just a poor student id very much appricate this
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