Exam 24: A: Monopoly Behavior

In Problem 1, if demand in the United States is given by Q₁ = 14,000 - 1,000p₁, where p₁ is the price in the United States, and if the demand in England is given by 1,600 - 200p₂, where p₂ is the price in England, then the difference between the price charged in England and the price charged in the United States will be

A price-discriminating monopolist sells in two separate markets such that goods sold in one market are never resold in the other. It charges $6 in one market and $8 in the other market. At these prices, the price elasticity in the first market is -2.40 and the price elasticity in the second market is -0.70. Which of the following actions is sure to raise the monopolist's profits?

Suppose that 3,500 people are interested in attending ElvisLand. Once a person arrives at ElvisLand, his or her demand for rides is given by x = max{ 2 - p, 0} , where p is the price per ride. There is a constant marginal cost of $1 for providing a ride at ElvisLand. ElvisLand charges a profit-maximizing two-part tariff, with one price for admission to ElvisLand and another price per ride for those who get in. How much should it charge per ride and how much for admission?

In Problem 1, if demand in the United States is given by Q₁ = 11,200 - 800p₁, where p₁ is the price in the United States, and if the demand in England is given by 1,600 - 200p₂, where p₂ is the price in England, then the difference between the price charged in England and the price charged in the United States will be

In Problem 1, if demand in the United States is given by Q₁ = 13,200 - 600p₁, where p₁ is the price in the United States, and if the demand in England is given by 9,000 - 500p₂, where p₂ is the price in England, then the difference between the price charged in England and the price charged in the United States will be

If a monopolist faces an inverse demand curve, p(y) = 100 - 2y and has constant marginal costs of $8 and zero fixed costs and if this monopolist is able to practice perfect price discrimination, its total profits will be

Suppose that 3,500 people are interested in attending ElvisLand. Once a person arrives at ElvisLand, his or her demand for rides is given by x = max{ 7 - p, 0} , where p is the price per ride. There is a constant marginal cost of $3 for providing a ride at ElvisLand. ElvisLand charges a profit-maximizing two-part tariff, with one price for admission to ElvisLand and another price per ride for those who get in. How much should it charge per ride and how much for admission?

In Problem 1, if demand in the United States is given by Q₁ = 18,000 - 900p₁, where p₁ is the price in the United States, and if the demand in England is given by 2,000 - 200p₂, where p₂ is the price in England, then the difference between the price charged in England and the price charged in the United States will be

Suppose that 2,500 people are interested in attending ElvisLand. Once a person arrives at ElvisLand, his or her demand for rides is given by x = max{ 3 - p, 0} , where p is the price per ride. There is a constant marginal cost of $2 for providing a ride at ElvisLand. ElvisLand charges a profit-maximizing two-part tariff, with one price for admission to ElvisLand and another price per ride for those who get in. How much should it charge per ride and how much for admission?

A price-discriminating monopolist sells in two separate markets such that goods sold in one market are never resold in the other. It charges $6 in one market and $8 in the other market. At these prices, the price elasticity in the first market is -2.10 and the price elasticity in the second market is -0.40. Which of the following actions is sure to raise the monopolist's profits?

If a monopolist faces an inverse demand curve, p(y) = 100 - 2y and has constant marginal costs of $4 and zero fixed costs and if this monopolist is able to practice perfect price discrimination, its total profits will be

If a monopolist faces an inverse demand curve, p(y) = 100 - 2y and has constant marginal costs of $24 and zero fixed costs and if this monopolist is able to practice perfect price discrimination, its total profits will be

If a monopolist faces an inverse demand curve, p(y) = 100 - 2y and has constant marginal costs of $16 and zero fixed costs and if this monopolist is able to practice perfect price discrimination, its total profits will be

Suppose that 2,000 people are interested in attending ElvisLand. Once a person arrives at ElvisLand, his or her demand for rides is given by x = max{ 5 - p, 0), where p is the price per ride. There is a constant marginal cost of $2 for providing a ride at ElvisLand. If ElvisLand charges a profit-maximizing two-part tariff, with one price for admission to ElvisLand and another price per ride for those who get in. How much should it charge per ride and how much for admission?

If a monopolist faces an inverse demand curve, p(y) = 100 - 2y and has constant marginal costs of $32 and zero fixed costs and if this monopolist is able to practice perfect price discrimination, its total profits will be

A price-discriminating monopolist sells in two separate markets such that goods sold in one market are never resold in the other. It charges $2 in one market and $12 in the other market. At these prices, the price elasticity in the first market is -2.50 and the price elasticity in the second market is -0.70. Which of the following actions is sure to raise the monopolist's profits?

A price-discriminating monopolist sells in two separate markets such that goods sold in one market are never resold in the other. It charges $4 in one market and $9 in the other market. At these prices, the price elasticity in the first market is -1.50 and the price elasticity in the second market is -0.40. Which of the following actions is sure to raise the monopolist's profits?

A price-discriminating monopolist sells in two separate markets such that goods sold in one market are never resold in the other. It charges $6 in one market and $11 in the other market. At these prices, the price elasticity in the first market is -1.40 and the price elasticity in the second market is -0.90. Which of the following actions is sure to raise the monopolist's profits?

Suppose that 1,000 people are interested in attending ElvisLand. Once a person arrives at ElvisLand, his or her demand for rides is given by x = max{ 6 - p, 0} , where p is the price per ride. There is a constant marginal cost of $3 for providing a ride at ElvisLand. If ElvisLand charges a profit-maximizing two-part tariff, with one price for admission to ElvisLand and another price per ride for those who get in. How much should it charge per ride and how much for admission?

In Problem 1, if demand in the United States is given by Q₁ = 7,200 - 300p₁, where p₁ is the price in the United States, and if the demand in England is given by 3,600 - 200p₂, where p₂ is the price in England, then the difference between the price charged in England and the price charged in the United States will be