1.The Hall-jones Computer Company monopolizes the production of a specialized chip. The market demand curve P=150 - 2Q. J-one has a total cost of TC= 3Q². If J-one charges the same price to all customers, what is J-one's profit?

$225

$200

$1,054

$1,125

None of the above. it is better off closing its business.

2.The monopolist faces the following demand curve: Q = 120 - 3P and has the following total cost: TC=20Q. The monopolist is engaging first-degree price discrimination and using two-part tariff pricing strategy: unit fee is $20 and the access fee is $600. Now the monopolist faces a potential competitor. If the consumer switches to buy the product from the competitor, the consumer will receive consumer surplus of $350. What should the monopolist do now? (Assuming consumers will stay with the monopolist if they are indifferent between buying from the monopolist and buying from the potential competitor.)

The monopolist doesn't need to do anything because he is a price-maker.

The monopolist should lower the unit fee.

The monopolist should lower the access fee to $250.

a and b.

a and c.

3.Under monopolistic competition, which of the following is true?

In the long run equilibrium, firms can make positive profits.

In the short run, the firm is a price-taker just like a firm in perfect competition.

If there are economic profits, in the long run new firms enter leading to a decrease in demand for the existing firm.

All of the above are true.

None of the above are true.