Unit 9 Assignment: Monopoly Pricing


General Instructions for all Assignments

 

Insert your answers below, or in the appropriate space provided for in the question. Your answers should follow APA 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.

 

 

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 501(c) (3) non–profit 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 the video on a DVD and mailing the DVD is $6.58. In a GSTCG member meeting, the video plan was discussed. Table 1. 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 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.
Table 1.
Suggested Donation per DVD Request Anticipated Number of DVD Requests
$19.00 0
$15.00 2
$9.50 4
$7.75 10
$3.00 15
$0.00 20

 

  1. Complete Table 2. by computing the Total Revenue, Marginal Revenue, and Profit columns.
Table 2.
Suggested Donation per DVD Request Anticipated Number of DVD Requests Total Revenue Marginal Revenue PROFIT
$19.00 0
$15.00 2
$9.50 4
$7.75 10
$3.00 15
$0.00 20

 

  1. 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. 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. 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. The Fund Raising Committee wants the DVD program to generate as much profit in donations as possible. What price is the Fund Raising Committee favoring and how many people will receive the DVD if this becomes the price of the suggested donation? Explain your answers.

 

 

  1. A business has been created to provide needed services to its market. As the only provider of this service, it functions as a monopoly, with the ability to set prices and having the entire market demand schedule as its demand curve. Because the monopoly is newly formed, there is no government intervention into the monopoly’s pricing actions. Examine Diagram 2. and answer each of the following questions with complete explanations:

 

  1. What is quantity (a) and why is it important?

 

 

 

  1. What is the value at point (b) and why is it important?

 

 

 

  1. What is the value at point (c) and why is it important?

 

 

 

  1. What is the value at point (d) and why is it important?

 

 

 

  1. What is the meaning of the green rectangle labeled (e)?

 

 

 

  1. If there were no monopoly and this was a perfectly competitive market, what would quantity at point (f) be and why is it important?

 

 

 

  1. If there were no monopoly and this was a perfectly competitive market, what would point (g) be and why is it important?

 

 

 

  1. For the market in which the monopoly now operates, what does the red triangle labeled (h) mean, and why is it important?

 

 

 

 

 

  1. A governmental regulating agency was created to oversee the monopoly in Question 2’s operations and pricing. Diagram 3. depicts a new price ceiling set by the regulators. Answer each of the following questions with complete explanations:

 

  1. What is quantity (a) and why is it important?

 

  1. What is the value at point (b) and why is it important?

 

  1. At what level was the price ceiling set?

 

  1. What is the value at point (c) and why is it important?

 

  1. At this price ceiling level, will the monopoly make any monopoly profits?

 

  1. At this price ceiling level, will the monopoly cover its costs?

 

  1. At this price ceiling level, will the monopoly continue in business in the long run?

 

 

  1. Diagram 4. depicts a different price ceiling set by the regulators for the monopoly in Question 2. Answer each of the following questions with complete explanations:
  2. What is quantity (a) and why is it important?

 

 

  1. What is the value at point (b) and why is it important?

 

 

  1. At what level was the price ceiling set?

 

 

  1. At this price ceiling level, will the monopoly make any monopoly profits?

 

 

  1. At this price ceiling level, will the monopoly cover its costs?

 

 

  1. At this price ceiling level, will the monopoly continue in business in the long run?

 

 

  1. Explain your understanding of how price effect contributes to the fact that, for a monopoly, marginal revenue is always less than the price.

 

 

 

  1. Explain your understanding of how quantity effect contributes to the fact that, for a monopoly, marginal revenue is always less than the price.

 

 

 

 

——————————-

References:

 

 

 

 

 

 

 

 

Unit 9 Assignment: Monopoly Pricing Grading Rubric:

Content Percent Possible Points Possible
Full Assignment 100% 40
     
Overall Writing: 20% 8
Correct coversheet information at the top of 1st page 5% 2.00
APA format for answers 3% 1.20
Correct citations 3% 1.20
Standard English no errors 4% 1.60
At least one, or more, references 5% 2.00
     
Answers: provides complete information demonstrating analysis and critical thinking: 80% 32
Individual Questions:    
1. a. Computer TR, MR and Profit 5% 2.00
1. b. Most donations 3% 1.20
1. c. Most people get DVD’s 3% 1.20
1. d. Most efficient price 4% 1.60
1. e. Most profit 3% 1.20
2. a.–h. Evaluate monopoly – no price ceiling 16% 6.40
3. a.–g. Evaluate monopoly – 1st price ceiling 14% 5.60
4. a.–f. Evaluate monopoly – 2nd price ceiling 12% 4.80
5. Explain price effect and MR not equal price 10% 4.00
6. Explain quantity effect and MR not equal price 10% 4.00
Sub-total for Individual Questions: 80% 32

Best Cheap Essay Writing Services for Affordable Price | Research Papers, Term Papers, Dissertation & Thesis Works

Best Cheap Essay Writing Services for Affordable  Price
Are you fed up with writing academic papers? Want to take the stress out of your assignments?, welcome to the paradise of excellence, UKbestessays.com. 
The UKbestessays.com caters all your needs and helps to excel in your academic realm. We promise you a career with a brighter future. Trust us; we can ease your tension with our custom essay writing service which includes only the professional academic writers from USA and UK. Good writing is about clear thinking and communicating our ideas- Realizing this, our professional writers are well versed in critical thinking and organizing a paper in any discipline with quality and on time. So come with trust and go with an easy mind.

Synthesis

For your third paper in this class, write a synthesis responding to the following prompt:

 

The readings for this unit have discussed the attitudes and opinions of millennials in the United States around the issues of relationships, marriage, and family. In your papers, discuss the major issues to be considered when evaluating millennials’ attitudes around these topics, and relate them to your own thinking about these issues.

 

You can draw from all sources to provide a nuanced view of the topics, or you can align yourself with one subtopic from the available texts. Either way, your commentary and analysis needs to be supported with examples from at least five texts.

 

Your audience is professors/students in a 4-year university; assume they have not read the texts.

 

4-5 pages, double-spaced, 12-point Times New Roman font, one-inch margins, MLA or APA style.

 

Successful papers will:

  • Include an effective introduction that gives a general overview of the topic for the reader.
  • Include a claim that explains your attitude towards the issues surrounding millennials and their attitudes about relationships, marriage, and/or families.
  • Be organized around the issues that the texts explore considering millennials and their thoughts.
  • Include effective body paragraphs that clearly state each issue and provide information about them with evidence from the texts.
  • Respond to how you, personally, either align with or do not agree with the attitudes of millennials in regards to the main topics discussed. Also, do you think members of this generation in other countries either align with or deviate from American millennials?
  • Include a conclusion that restates the main points to consider when determining the thoughts and feelings of millennials in regards to family and marriage. Explain the importance of the issue; why is it significant? Who can benefit from this knowledge? Why is it useful to know about where this generation is in terms of their thoughts and attitudes about their futures?

Assigned readings:

“Gallup Analysis: Millennials, Marriage, and Family” – gallup.com

 

“Gen Y is from Mercury” – course reader
“Millennials seeking fulfillment in work instead of faith or family” – The Washington Times

 

“The Beta Marriage: How Millennials Approach ‘I Do’” – Time Magazine

 

“15% of American Adults have used online dating sites or mobile dating apps” – pewinternet.org

 

“Gay Marriages Road to Popularity in 5 Charts” – The Washington Post

“Behind the Rapid Shift in Public Opinion on Same-sex Marriage” – deseratnews.com

“The Millennial Generation Becomes Parents” – millenialmarketing.com

“Millennials in adulthood” – persocialtrends.org

Click here to download the selected financial statements for Micro Chip Computer Corporation. Answer questions 1 and 2 below based on the financial data. Determine the year-to-year percentage annual growth in total net sales.

Click here to download the selected financial statements for Micro Chip Computer Corporation. Answer questions 1 and 2 below based on the financial data.

  1. Determine the year-to-year percentage annual growth in total net sales.
  2. Based only on your answers to question #1, do you think the company achieved its sales goal of +10% annual revenue growth in 2009? Determine the target revenue figure, and explain why you do or do not feel that the company hit its target.

Next, consider Micro Chip’s Consolidated Statement of Operations for the year ended September 25, 2008. Download the file here and answer questions 1 and 2.

  1. Use the Percentage Sales Method and a 25% increase in sales to forecast Micro Chip’s Consolidated Statement of Operations for the period of September 26, 2008 through September 25, 2009. Assume a 15% tax rate and restructuring costs of 5% of the new sales figure.
  2. Discuss your results from question number #1. What assumptions have you made? Do any of your assumptions seem unreasonable?

To receive full credit on this assignment, please show all work, including formulae and calculations used to arrive at the financial values. Students using Microsoft Excel must provide an adequate explanation of the methodology used to arrive at that answer.

Assignment Guidelines

  • Download the financial statements and consolidated statement of operations by clicking on the links above in the assignment description.
  • Analyze the statements and then answer the four questions listed in the assignment description.
  • Show all work including calculations and formulas. If applicable, provide a detailed explanation of how you used Microsoft Excel to arrive at your answers.
  • Organize your answers, mathematical calculations, and Microsoft Excel data into a Word document of 1–2 pages.

Your submitted assignment (120 points) must include the following:

  • A double-spaced Word document of 1–2 pages that contains your answers to the four questions listed in the assignment description, any calculations you performed, and all formulae that were used. Also, provide your Excel data table(s) along with an explanation of how you arrived at your answers if applicable.

Grading

You will be graded on the accuracy of your financial calculations as well as your demonstrated understanding of financial statement analysis.