Reference no: EM133126400

Monopolies and Price Discrimination

1.- Mention 3 examples of monopolies that you identify in reality, explain the reasons why it is a monopoly (type of product, barriers and how they were formed)

2.- A company that manufactures NFL products has estimated the following demand function for Tom Brady's jersey.

P = 3200 -1 / 250??

Considering the following variable average cost function

CMeV = Q + 62

In addition, you must consider that to be the only one who can use the name of Tom Brady on the shirt, 825 thousand pesos must be paid.

How many shirts should you make and what should the price be?

3.- Suppose that the only solar car company in the city wants to estimate the number of cars to import (Q) given that it has the following cost function

CT = 2Q ** 2 + 6Q + 20

Considering the following inverse demand function measured in daily cars

P = 47.5-2.1Q

Given the above information Graph the following

- Average cost, marginal cost, marginal revenue, and demand curves. Consider values ??of Q between 0 and 30.

Calculate the following assuming the firm is a monopoly

- The number of cars that maximize your profits as a monopoly

- The sale price of the cars

- How much does it cost to bring each unit to market

- How much are your annual benefits?

Calculate the following if the company were in a market with perfect competition (considering that its Marginal Costs function is equal to the market supply)

- The number of cars that maximize your profits as a monopoly

- The sale price of the cars

- How much are your annual benefits?

- Calculate the loss of social benefit if the monopoly is maintained.

Note: Prices and costs are in thousands of dollars, and the amount in daily cars.