What is the level of output that will maximize monopolist's profit?
A monopolist faces the inverse demand function described by p = 100=2q, where q is output. The monopolist has no fixed cost and his marginal cost is $20 at all levels of output. What is the level of output that will maximize monopolist's profit?
Homework Answers
Ans) In monopoly there is single seller selling unique product. A profit maximising firm produces the quantity where MR = MC.
In monopoly, marginal revenue curve lies beneath the demand curve and has slope twice that of demand curve.
So, MR = 100 - 2(2q) = 100 - 4q
Equating MR and MC to get profit maximising quantity.
100 - 4q = 20
100 - 20 = 4q
4q = 80
q = 80÷4
q = 20 units.
A monopolist faces the inverse demand function described by p = 100-2q
A monopolist faces the inverse demand function described by p = 100-2q, where q is output. The monopolist has no fixed cost and his marginal cost is $20 at all levels of output. What is the monopolist's profit as a function of his output?
Please answer parts F, G, H, I. Thank you in advance MC=5 4. (51 points) The...
Please answer parts F, G, H, I.
Thank you in advance
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b) How much output should the monopolist produce in order to maximize profit? c) How much...
b) How much output should the monopolist produce in order to
maximize profit?
c) How much labor should the firm hire to produce this
output?
d) How Much Capital should the firm hire?
e) What price should the monopolist charge?
f) What is the deadweight loss?
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Please answer me in detail. Thank you.
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Please answer parts F, G, H, I.
Thank you in advance
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A monopolist faces inverse market demand of P = 140- TC(Q) = 20° + 10Q + 200. and has Total Cost given by (20 points) Find this monopolist's profit maximizing output level. Find this monopolist's profit maximizing price How much profit is this monopolist earning?
b) How much output should the monopolist produce in order to
maximize profit?
c) How much labor should the firm hire to produce this
output?
d) How Much Capital should the firm hire?
e) What price should the monopolist charge?
f) What is the deadweight loss?
g) What is the Price Elasticity of Demand at the
profit-maximizing price and quantity?
3. Suppose a monopolist has a production function given by Q = L12K12. Therefore, L2 MPL K2 2/12 , and...
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Please answer me in detail. Thank you.
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