The market structure of the local pizza industry is best characterised by monopolistic competition. Pizza Shack is one of the producers in the local market.The market demand for Pizza Shack is: Qd = 225 – 10P.Pizza Shack’s cost function is: C(Q) = 0.15Q^2Where Q^2 refers to q squared3. Derive the total revenue equation:  Blank 1. Fill in the blank, read surrounding text.

The monthly rent for a pizza parlor is $1,200. The average production cost per pizza is $6.75. The monthly expenses for the pizza parlor are given by the function 𝐸⁡(𝑥)=1,200+6.75⁢𝑥 , where x is the number of pizzas sold. For x pizzas sold, the pizza parlor's revenue is given by the function 𝑅⁡(𝑥)=12.5⁢𝑥 .The monthly profit of the pizza parlor is the difference between its revenue and its expenses. Which function represents the monthly profit, 𝑃⁡(𝑥) ? A. 𝑃⁡(𝑥)=5.75⁢𝑥+1,200 B. 𝑃⁡(𝑥)=5.75⁢𝑥−1,200 C. 𝑃⁡(𝑥)=1,200+19.25⁢𝑥 D. 𝑃⁡(𝑥)=6.25⁢𝑥−1,200

The following table contains a monthly demand schedule for large, single-topping, carry-out pizzas.Price Quantity Demanded$15 A$20 25If the law of demand applies to these pizzas, then A could beGroup of answer choices30.25.0.15.

A monopoly faces a demand curve given by P = 100 - 0.5Q, where P is the price and Q is the quantity. Calculate the total revenue and marginal revenue when the quantity sold is 40 units.

1. The table below describes the market situation of a monopolist. The first two columnsdescribe price and quantity as taken from the demand curve the monopolist faces. Thethird column provides the monopolist’s total cost of producing the given quantity.The monopoly may only produce whole units of output (no fractions of Q).Price Quantity Total Cost50 20 54049 21 56548 22 59047 23 61546 24 640a.* What is the profit maximizing quantity for the monopolist? What price will the monopolistcharge? (Hint: Add columns for total revenue, marginal revenue and marginal cost.)b.* What profit will the monopolist make, given your answer to part a.?c. Suppose that instead of the total cost given in the table above, the monopolist had a constantmarginal cost of $28 (and faced the same demand curve). What would be the profitmaximizing quantity for the monopolist?2Use figure 1 at right to answer question 2.Use the letters to describe the areas associatedwith the concepts below. (i.e. rectangle BCFE)There is no price discrimination in this market.2. a.* If this market is a monopoly, what would consumer surplus be?b.* If this market is a monopoly, what would firm profit be?c. If this market is perfectly competitive (in long run equilibrium), whatwould consumer surplus be?d. If this market is perfectly competitive (in long run equilibrium), whatwould firm profit be?e.* If this market is a monopoly, what would the dead weight loss be?3. One approach to regulating monopolies has been to break the monopoly up into smallercomponent firms, as in the case of antitrust actions against the railroads in the early 1900’s.Would you recommend this approach for a natural monopoly? Discuss why or why not.IAC = MCC H$GDemandMRADBQFEFigure 134. Consider the payoff matrix for a two firm game depicted above.a.* What is the optimal outcome for the firm’s profits considered together? (This is the“socially optimal” outcome.)b.* Is there a dominant strategy equilibrium in this game? If so, what is it?c.* Describe how these outcomes relate to the oligopoly pricing problem described in class.Which outcome coincides with “cheating”? Which outcome represents “cooperation”d. If firms play this game, what do you expect will happen? Please briefly explain why.5. Consider the following types of market organization in answering this question:long run perfect competition, long run monopolistic competition, two firm oligopoly(duopoly) which is successfully cooperating and monopoly.a.* Order the firms from smallest to largest long run profit. Please provide a brief explanation.b.* Order the firms from smallest to largest price to the consumer.c. Discuss the efficiency of each type of market organization.Strategy 1Strategy 2B = 30A = 30B = 40A = 0B = 0A = 40B = 10A = 10Firm AFirm BStrategy 2StrategyQuestion 1. a.* What is the profit maximizing quantity for the monopolist? (Hint: Add columns for total revenue, marginal revenue and marginal cost.)Group of answer choicesquantity = 20quantity = 21quantity = 22quantity = 23quantity = 24Question 1. b.*  What profit will the monopolist make, given your answer to part a.?Group of answer choicesprofit = 0profit = 460profit = 464profit = 466profit = 476Question 2. a.* If this market is a monopoly, what would consumer surplus be?Group of answer choicesarea ABEarea ACHarea EFHarea BCFEarea CDGFarea BCHEQuestion 2. b.* If this market is a monopoly, what would firm profit be?Group of answer choicesarea ABEarea ACHarea EFHarea BCFEarea CDGFarea BCHEQuestion 2. e.* If this market is a monopoly, what would the dead weight loss be?Group of answer choicesarea ABEarea ACHarea EFHarea BCFEarea CDGFarea BCHEQuestion 4.a. What is the optimal outcome for the firm’s profits considered together?  (This is the “socially optimal” outcome.)Group of answer choicesFirm A plays strategy 1, firm B plays strategy 1Firm A plays strategy 1, firm B plays strategy 2Firm A plays strategy 2, firm B plays strategy 1Firm A plays strategy 2, firm B plays strategy 2Question 4.b.  Is there a dominant strategy equilibrium in this game? If so, what is it?Group of answer choicesFirm A plays strategy 1, firm B plays strategy 1Firm A plays strategy 1, firm B plays strategy 2Firm A plays strategy 2, firm B plays strategy 1plays strategy 2, firm B plays strategy 2Question 4.c.  Describe how these outcomes relate to the oligopoly pricing problem described in class.Which outcome represents “cooperation”?Group of answer choicesFirm A plays strategy 1, firm B plays strategy 1Firm A plays strategy 1, firm B plays strategy 2Firm A plays strategy 2, firm B plays strategy 1Firm A plays strategy 2, firm B plays strategy 2Question 5.a. Order the firms from smallest to largest long run profit.Group of answer choicesMonopolistic Competition, Monopoly, Perfect Competition, One firm in a cooperating DuopolyPerfect Competition, Monopoly, Monopolistic Competition, One firm in a cooperating DuopolyOne firm in a cooperating Duopoly, Perfect Competition, Monopoly, Monopolistic CompetitionPerfect Competition, Monopolistic Competition, One firm in a cooperating Duopoly, MonopolyQuestion 5.b. Order the firms from smallest to largest price to the consumer.Group of answer choicesMonopolistic Competition, Perfect Competition, Monopoly, One firm in a cooperating DuopolyPerfect Competition, Monopoly, Monopolistic Competition, One firm in a cooperating DuopolyOne firm in a cooperating Duopoly, Perfect Competition, Monopoly, Monopolistic CompetitionPerfect Competition, Monopolistic Competition, One firm in a cooperating Duopoly, Monopoly

A monopolist faces a demand curve given by P = 30-Q and has constant marginal (and average cost) of $19. What is the economic profit made by this profit-maximising monopolist when practicing perfect price discrimination? [Round your answer to 2 decimal places where necessary]