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In working the following problem, I solved for P to derive: P=60.65-.5Q. From there I calculated TR and MR. I set up excel with Q ranging up to 60 and used P as a function of Q with the P equation. TR=60.65Q-.5Q^2 MR=60.65-1Q I set MC = to the .65 (constant cost but I am not sure that this was correct.) I was able to solve for Q=60 and plug in to Price equation to get profit but I am not sure that this is correct. Please help!

Games to Get, LLC currently enjoys a patent on gaming software that predicts usage for clients involved in civil lawsuits. Demand for this software is

QD = 121.3 – 2P. Software creation and development was $2,350. G2G can generate each copy for a (constant cost) of $0.65).

a. How many copies of the software should G2G attempt to sell? At what price? How much profit would be generated?

b. G2G’s patent expires in 12 months, and soon other gaming companies will produce competing software. What quantity and price will result once competing software emerges? How much consumer surplus will my clients gain once the competitors enter? (For measuring consumer surplus, recall that area of a triangle = ½ * base * height.) My calculation suggests that while in monopoly status, a price of 30.65 can be charged, whereas in competition, P rises. :(

c. How much deadweight loss is created by G2G’s patent and monopoly on this software?

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Samantha Balando
Samantha BalandoLv7
28 Sep 2019
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Related questions

Shaughnessy Consulting, LLC currently enjoys a patent on software that estimates economic damages for clients involved in personal injury lawsuits. Demand for my software is QD = 121.3 – 2P. Creating the software cost me about $2,350 in development and coding. I can produce a copy of the software for $0.65 per unit (constant cost). a. How many copies of the software should I attempt to sell? At what price should I sell it? How much profit would I make? b. My patent expires in a year, and I know other economic consultants will produce competing software. What quantity and price will result once competing software emerges? How much consumer surplus will my clients (lawyers) gain once the competitors enter? (For measuring consumer surplus, recall that area of a triangle = ½ * base * height.) c. How much deadweight loss is created by my patent and monopoly in this software?

1.
A monopolist faces the following demand curve:


Price Quantity Demanded

$51 1

$47 2

$42 3

$36 4

$29 5

$21 6

$12 7



The monopolist has total fixed costs of $60 and has a constantmarginal cost of $15. What is the profit-maximizing level ofproduction?





A) 5 units
B) 3 units
C) 2 units
D) 4 units
2.
A monopolist faces the following demand curve:


Price Quantity Demanded

$10 5

$9 10

$8 16

$7 23

$6 31

$5 49

$4 52

$3 60



The monopolist has total fixed costs of $40 and a constant marginalcost of $5. At the profit-maximizing level of output, themonopolist’s average total cost is



A) $6.74
B) $9.00
C) $7.50
D) $5.82
3.
A monopoly market


A) generally fails to maximize total economic well-being.
B) generally fails to maximize producer surplus.
C) always maximizes total economic well-being.
D) always minimizes consumer surplus.
4.
For a monopoly, the supply curve is a portion of its
A) none of the above; a monopoly does not have a supplycurve.
B) average total cost curve.
C) marginal revenue curve.
D) marginal cost curve.
5.
A monopoly firm can sell 200 units of output for $36.00 per unit.Alternatively, it can sell 201 units of output for $35.80 per unit.The marginal revenue of the 201st unit of output is
A) $–35.80.
B) $4.20.
C) $–4.20.
D) $35.80.
6.
If a monopolist sells 100 units at $8 per unit and realizes anaverage total cost of $6 per unit, what is the monopolist'sprofit?
A) $800
B) $400
C) $600
D) $200
7.
A monopolist is a price
A) setter, and therefore has no demand curve.
B) setter, and therefore has no supply curve.
C) taker, and therefore has no supply curve.
D) setter, and therefore has no variable cost curve.
8.
To define a monopoly, we cite the following characteristics: (i)The firm is the sole seller of its product. (ii) The firm’s productdoes not have close substitutes. (iii) The firm generates a largeeconomic profit. (iv) The firm is located in a small geographicmarket.
A) (ii) and (iv)
B) All of the above are correct.
C) (i) and (ii)
D) (i) and (iii)
9.
Consider a transportation corporation named C.R. Evans that hasjust completed the development of a new subway system in amedium-sized town in the Northwest. Currently, there are plenty ofseats on the subway, and it is never crowded. Its capacity farexceeds the needs of the city. After just a few years of operation,the shareholders of C.R. Evans experienced incredible rates ofreturn on their investment, due to the profitability of thecorporation.

Which of the following statements are most likely to be true? (i)New entrants to the market know they will earn a smaller piece ofthe market than C.R. Evans currently has. (ii) C.R. Evans is mostlikely experiencing increasing average total cost. (iii) C.R. Evansis a natural monopoly.

A) (ii) and (iii)
B) All of the above are correct.
C) (i) and (iii)
D) (i) and (ii)
10.


Quantity
Price
Total Revenue
Average Revenue
Marginal Revenue
1
$35
$35


2

64
32
29
3
$29



4



17
5
$23


11
6

120


7
$17


-1
8



-7
9

99
11
-13
10

80
8





If the monopolist sells 8 units of its product, how much totalrevenue will it receive from the sale?

You wil have to complete the entries in this table to get ananswer. It is a wothwhile exercise and I encourage you to completethe table.

HINT: (a.) Total Revenue = Price x Quantity. (So for quantity of 3x price of $29 = 87 total revenue)

(b) Average Revenue is the same as Price. (So column 2 and column 4would be the same. Calculate to see if that is correct)

(c) Marginal Revenue = Change in TR divided by change in quantity.(You calculated TR = 87 for Q=3. Thus to find MR for Q = 3, findthe change in TR= 87 - 64 and divided by one).











A) 112
B) It cannot be determined from the information provided.
C) 164
D) 40
11.
What conditions need to be present for a firm to be able to use'price discrimination?'
A) Firm should not be perfectly competitive; the market can beseparated according to different elasticities; items can beresold
B) Firm should be perfectly competitive; the market can beseparated according to different elasticities; resale of the itemsis not possible.
C) Firm should not be perfectly competitive; buyers should havesame elasticities;; resale of the items is not possible.
D) Firm should not be perfectly competitive; the market can beseparated according to different elasticities; resale of the itemsis not possible.
12.
If the government regulates the natural monopoly by asking it tocharge a price that is equal to its marginal cost (P=MC) theregulated monopoly will -------- so instead the government ends upletting it charge a price equal to its ------
A) have a profit; fixed cost
B) have a profit; average cost
C) have a loss; variable cost
D) have a loss; average cost

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