Microeconomics Answers

Describe five (5) monopolistic market characteristics.

In Thailand, a firm named SunFly is planning to monopolize its streaming services. The firm has made a ฿3 million investment in their streaming offerings. In addition, the firm has faced a marginal cost of ฿10 for each streaming service it offers. The table below displays SunFly's monthly streaming service pricing as well as the quantity demanded for each pricing. 

Price (฿):

1. ฿ 130
2. ฿ 120
3. ฿ 110
4. ฿ 100
5. ฿ 90
6. ฿ 80
7. ฿ 70
8. ฿ 60
9. ฿ 50

Quantity demanded:

1. 10,000
2. 20,000
3. 30,000
4. 40,000
5. 50,000
6. 60,000
7. 70,000
8. 80,000
9. 90,000

a.) Calculate total revenue, marginal revenue, total cost, and profit using the information given. What amount should a monopolistic business charge in order to maximize profits?

b.) Illustrate (draw) a graph for the marginal-revenue, marginal-cost, and demand curves based on your solution in (a). The marginal revenue and marginal-cost curves intersect at what price and quantity?

The total cost and total income of Product Z are shown in the table below:

Quantity:

1. 0 product Z
2. 1 product Z
3. 2 product Z
4. 3 product Z
5. 4 product Z
6. 5 product Z
7. 6 product Z
8. 7 product Z

Total cost （￥）:

1. ￥7
2. ￥11
3. ￥16
4. ￥22
5. ￥29
6. ￥37
7. ￥46
8. ￥56

Total Revenue (￥)：

1. ￥0
2. ￥10
3. ￥20
4. ￥30
5. ￥40
6. ￥50
7. ￥60
8. ￥70

a.) Calculate average total revenue, marginal cost, marginal revenue, and total profit using the information above. Identify the level of production/output the company should produce in order to maximize profits.

b.) illustrate (draw) a graph showing average total revenue, marginal cost, and marginal revenue using the solution in (a) (put the points between whole numbers). Using the graph, calculate the price of product Z and explain your solution.

Nimbus, Inc., makes brooms and then sells them to customers. Here is the relationship between the number of workers and Nimbus's output in a given day:

Workers:

1. 0 worker
2. 1 worker
3. 2 workers
4. 3 workers
5. 4 workers
6. 5 workers
7. 6 workers
8. 7 workers

Output:

1. 0 broom
2. 20 brooms
3. 50 brooms
4. 90 brooms
5. 120 brooms
6. 140 brooms
7. 150 brooms
8. 155 brooms

a.)Marginal product / b.)Total cost / c.)Average Total cost / d.)Marginal cost:

1. ?
2. ?
3. ?
4. ?
5. ？
6. ？
7. ？
8. ？

Calculate:

a.） Find the marginal products of 1 to 8. 

b.） A worker costs $100 a day, and the firm has fixed costs of $200. Use this information to find 1to 8 for total cost. 

c.）  Find 1 to 8 for average total cost. (Recall that ATC =TC /Q.) 

d.） Now find 1 to 8 for marginal cost. (Recall that MC = ATC /AQ) 

e） Calculate the output level at minimum average total cost for Nimbus。

Assume Thailand is a petroleum exporter on the global market. Draw the petroleum market in Thailand before and after international trade using a demand and supply graph (draw a graph), assuming the world price for petroleum is above the Thailand petroleum market before open for international trade. Identify and show (draw a graph) the change in consumer surplus, producer surplus, and total surplus seeing as Thailand is now open for international trade. Additionally, give some explanations for what happened.

Suppose that the price of materials used to produce computer hardware, such as graphics cards, is decreased. Show what occurs to price, quantity, consumer surplus, producer surplus, and total surplus in the market for computers graphic cards using a supply-and-demand diagram (draw a graph). Furthermore, provide five explanations for what occurred.

Explain (3) how total surplus (consumer surplus + producer surplus) can be maximized at the equilibrium level by illustrating (drawing a graph) consumer and producer surplus using a demand and supply graph.

Assume the government imposes a price ceiling on the cigarette market. Construct a cigarette demand and supply market. Explain (5) how non-binding and/ binding price ceilings cause a decrease in market efficiency.