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20191212115037bu224 Unit9 Assignment Complete

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Economics
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Purdue University Global
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Unit 9 Assignment: Monopolies
Name:
Course Number and Section:
Date:
General Instructions for all Assignments
1. Unless specified differently by your course instructor, save this assignment template
to your computer with the following file naming format: Course number_section
number_last name_first name_unit number
2. At the top of the template, insert the appropriate information: Your name, course
number and section, and the date
3. Insert your answers below, or in the appropriate space provided for in the question.
Your answers should follow APA 6th edition format with citations to your sources and, at
the bottom of your last page, a list of references. Your answers should also be in
Standard English with correct spelling, punctuation, grammar, and style (double-spaced,
in Times New Roman, 12point, and black font). Respond to questions in a thorough
manner, providing specific examples of concepts, topics, definitions, and other elements
asked for in the questions.
4. Upload the completed Assignment to the appropriate Dropbox.
5. Any questions about the Assignment, or format questions, should be directed to your
course instructor.
Assignment
In this Assignment, you will demonstrate your understanding of monopoly pricing, based
on different management criteria, the impact of price regulation of monopolies, and
provide detailed explanations of how price effect and quantity effect cause marginal
revenue to be different from the price.
Questions
1. The Gulf Sea Turtle Conservation Group (GSTCG), a nonprofit group of volunteers
working to collect data on nesting sea turtles and to promote sea turtle conservation, is
considering creating a video to educate people about sea turtle conservation. The cost
of duplicating a video on a DVD and mailing the DVD is $5.56. In a GSTCG member
meeting, the video plan was discussed.
The first two columns of Table 1 below shows the expected demand for the DVD at
different suggested donation levels, and they can act as a single-price monopolist if they
choose to. The receipts will be used to fund GSTCG supplies for their data collection

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and conservation work. At the end of each sea turtle nesting season, any excess funds
are donated by the GSTCG to a local non-profit sea turtle research and rehabilitation
facility.
a. Complete Table 1 by computing the Total Revenue, Marginal Revenue, Total Cost, and
Profit columns, each rounded to two decimal places. The cost of duplicating a video on
a DVD and mailing the DVD, the Marginal Cost, is $5.56. (1 point)
Table 1
Suggested
Donation per
DVD Request
Anticipated
Number of
DVD Requests
Total
Revenue
Marginal
Revenue
Total Cost
Profit
$19.00
0
0.00
0.00
0.00
0.00
$15.00
2
30,00
15,00
11,12
18,88
$9.50
5
47,50
5,83
27,80
19,70
$7.75
9
69,75
5,56
50,04
19,71
$3.00
15
45,00
-4,13
83,40
-38,40
$0.00
24
0,00
-5,00
133,44
-133,44
b. The President wants the GSTCG to provide videos to generate the most possible
donations (Total Revenue). What price is the President of the GSTCG favoring and how
many people will receive the DVD if this becomes the price of the suggested donation?
Explain your answers. (1 point)
According to the data shown in the table, the maximum total revenue occurs for the anticipated
request of 9 DVD. Each of these DVD would perceive a $7.75 donation, hence resulting in a
total revenue of $69.75.
c. The Education Outreach Committee wants the GSTCG to provide videos to the most
possible number of people. What price is the Educational Outreach Committee favoring
and how many people will receive the DVD if this becomes the price of the suggested
donation? Explain your answers. (1 point)
The maximum number of DVDs anticipated is 24 people. In this case, the suggested donation
would be of $0 per DVD, hence resulting in a total loss of $133.44 for GSTCG.
d. The Treasurer of the GSTCG wants the DVD program to be as efficient as possible so
that the marginal revenue equals marginal cost. What price is the Treasurer favoring
and how many people will receive the DVD if this becomes the price of the suggested
donation? Explain your answers. (1 point)

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Unit 9 Assignment: Monopolies Name: Course Number and Section: Date: General Instructions for all Assignments 1. Unless specified differently by your course instructor, save this assignment template to your computer with the following file naming format: Course number_section number_last name_first name_unit number 2. At the top of the template, insert the appropriate information: Your name, course number and section, and the date 3. Insert your answers below, or in the appropriate space provided for in the question. Your answers should follow APA 6th edition format with citations to your sources and, at the bottom of your last page, a list of references. Your answers should also be in Standard English with correct spelling, punctuation, grammar, and style (double-spaced, in Times New Roman, 12–point, and black font). Respond to questions in a thorough manner, providing specific examples of concepts, topics, definitions, and other elements asked for in the questions. 4. Upload the completed Assignment to the appropriate Dropbox. 5. Any questions about the Assignment, or format questions, should be directed to your course instructor. Assignment In this Assignment, you will demonstrate your understanding of monopoly pricing, based on different management criteria, the impact of price regulation of monopolies, and provide detailed explanations of how price effect and quantity effect cause marginal revenue to be different from the price. Questions 1. The Gulf Sea Turtle Conserv ...
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