ECO 101H1: Principles of Microeconomics Prof.

Freitas, University of Toronto

ECO 101 Tutorial 9: Monopoly Porfeelly

longusinAtc
P =
compeht
*Q1. Consider a single-price monopolist facing Market Demand Q = 180 ≠ 2P . The Firm’s Total Cost function is
2
T C = 1500 + Q and the Marginal Cost is M C = 2Q. The long-run Market Price is
Atc ' lS0o+ q P
ls0o
90 回 2Q
=
A $90 = = 90 -
Q -
こ

B $75 Arcq π
$f2
mc =
^

C $60 P=
2Q = 1500 tq 90 = 2 5Q-

D $30
ArinTC = L800
0 + 38
36 Q
-

E $0 7248
.

_
=

308290 387298
#7S .

ot
Q2. A single-price monopolist facing Market Demand Q = 180 ≠ 2P is producing a quantity of 30 units. What is
the price effect if it increases its quantity to 31 units?
A. $75 β= a0 Q
(P-P XQ premus
-

=
B. $74.5
C. $59.5
P= a- ( 30)
X 30
D.
E.
$15
≠$15
P = o -
(3 D LS-75)
= $15
Q3. Consider a single-price monopolist facing a downward-sloping Market Demand curve. The elasticity of demand
at price P = $3 is |ÁD | = 0.35. At this price... Λ elestic
elastic

Temer
A Marginal Revenue (M R) > 0
B MR = 0
C MR < 0
g
D M R = $3
e
E MR = MC

Q4. Assume a profit-maximizing monopolist facing a constant marginal cost and constrained to charging the same
* price for each unit. Which of the following is true? Q
A. Produces all units where marginal cost less than or equal to price. P
Marieties
B. Chooses quantity that maximizes total revenue.
C. Chooses quantity where price equals marginal cost. Come
market
un
D. Chooses quantity where price is greater than marginal cost. D

筎 E. Chooses quantity where marginal revenue is greater than marginal cost.

MR Z MC
MC

Q5. Quantities can only be integers. A firm sells its good online only. It is a single-price monopolist facing Market
Demand in the table below. The firm has to pay $500 every year for their website costs even if it sells nothing. Q
Every unit sold costs it $10. What is the marginal revenue of the 57th unit?
sfth
1

TRSEM TR

{
Quantity 52 53 54 55 56 57

MWTP $174 $171 $168 $165 $162 $159 SF 159

-

56 162 .

A. $-9
B. $-3 qozz 9063
C. $0
D. $3
E. None of the above. 2 $ -
9

202409 1 of 1 Tutorial Questions

4) va
P
area under MC come

MC= S . SQ
+o

s////
8

Aren of
rectangle
8 XS = UO

Triagle 上 × 8× (9 =

57
2

=
ixoxy
=s
6

40 + 16
I
56
MrPP. 100 - Q