A monopolist faces the following demand curve, marginal revenue curve, total cost curve for its product
Scenario A: A monopolist faces the following demand curve, marginal revenue curve, total cost curve for its product:
Q=3500-5p
MR= 250-Q
TC=150 MC=100
What level of output maximizes total revenue? What is the profit maximizing level of output? What is profit maximizing price? How much profit does the monopolist earn? Suppose that a tax of $10 for each unit produced is imposed by state government. What is the profit maximizing level of output
Homework Answers
ANS
The profit maximizing level of output for a monopoly is at point where MR = MC
250 - Q = 100
Q = 150 is the profit maximizing level of output for a monopoly
The profit maximizing level of price is
Q = 3000 - 5p
p = (3000-Q)/5 = 2850/5 = 570 is the profit maximizing level of price
The Profit of monopolist is
TR - TC = P 
Q - TC = (150
570) - (15
150) = 83250
If government induces $10 tax per unit then
MC = 100 + 10 = 110
MR = 250 - Q
250 - Q = 110
Q = 140
Add Answer to:
A monopolist faces the following demand curve, marginal revenue curve, total cost curve for its product
Scenario A: A monopolist faces the following demand curve, marginal revenue curve, total cost curve for...
Scenario A: A monopolist faces the following demand curve, marginal revenue curve, total cost curve for its product: Q=3500-5p MR= 250-Q TC=15Q MC=100 What level of output maximizes total revenue? What is the profit maximizing level of output? What is profit maximizing price? How much profit does the monopolist earn? Suppose that a tax of $10 for each unit produced is imposed by state government. What is the profit maximizing level of output
A: A monopolist faces the following demand curve, marginal revenue curve, total cost curve for its...
A: A monopolist faces the following demand curve, marginal revenue curve, total cost curve for its product: Q=3500-5p MR= 250-Q TC=15Q MC=100 What level of output maximizes total revenue? What is the profit-maximizing level of output? What is the profit-maximizing price? How much profit does the monopolist earn? Suppose that a tax of $10 for each unit produced is imposed by the state government. What is the profit-maximizing level of output?
a monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost...
a monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost curve for its product: Q=200-2P MR=100-Q TC=5Q MC=5 What level of output maximizes total revenue? A) 95 B) 0 C) 90 D)100 What is the profit maximizing level output? A)0 B)100 C)90 D)95 How much profit does the monopolist earn? A)4512.50 B)5.00 C)475.00 D)4987.50
A monopolist faces a market demand curve given by
A monopolist faces a market demand curve given by Q=70-P a. If the monopolist can produce at constant average and marginal costs ofAC-MC-6, what output level will the monopolist choose to maximize profits? What is the price at this output level? What are the monopolist's profits? b. Assume instead that the monopolist has a cost structure where total costs are described by C(Q) = 0.25Q2 - 5Q + 300. With the monopolist facing the same market demand and marginal revenue, what price-quantity combination will be chosen now...
8. Consider the following Demand (Price and Marginal Revenue) and Cost (Total and Marginal) relationships expressed...
8. Consider the following Demand (Price and Marginal Revenue) and Cost (Total and Marginal) relationships expressed as functions of Q: Price = P(Q) = 310 – 2Q TC = TC(Q) = 3500 + 70Q + Q2 MR = MR(Q) = 310 – 4Q MC = MC(Q) = 70 + 2Q a. What is the profit-maximizing level of output? What is the price at that level? b. Should the firm continue operating in the short run? In the long run? c....
Figure 15-6 Price $20+ Marginal Cost 100 150 200 Quantity Marginal Revenue Refer to Figure 15-6. What is the deadweight loss caused by a profit-maximizing monopoly? O O $150 $200 $250 Os300 A monopolist faces market demand given by P - 60 - Q. For this ma
Figure 15-6 Price $20+ Marginal Cost 100 150 200 Quantity Marginal Revenue Refer to Figure 15-6. What is the deadweight loss caused by a profit-maximizing monopoly? O O $150 $200 $250 Os300 A monopolist faces market demand given by P - 60 - Q. For this market, MR = 90 - 2Q and MC - Q. What price will the monopolist charge in order to maximize profits? O $20 O $30 O so Osso In Canada, in the majority of...
A monopolist faces the following average revenue (demand) curve:
Problem 1. (7 points) A monopolist faces the following average revenue (demand) curve: P = 300-0.3Q and the monopolist's cost function is given by C(Q) = 8000+0.3Q2 (a) Derive the monopolist's marginal revenue equation. (2 pts) (b) Derive the monopolist's marginal cost equation. (1 pt) (c) What level of output will the monopolist choose in order to maximize its profits? (2 pts) (d) What price will the monopolist receive at the profit-maximizing level of output? (1 pt) (e) Calculate the monopolist's profit when they produce at the profit-maximizing level....
Suppose a monopolist faces the following demand curve: P=250-Q Marginal cost of production is constant and equal to $10,...
Suppose a monopolist faces the following demand curve: P=250-Q Marginal cost of production is constant and equal to $10, there are no fixed costs What is the monopolist's profit-maximizing level of output?
please answer all questions! Figure 15-6 Price $20+ Marginal Cost 100 150 200 Quantity Marginal Revenue...
please answer all questions!
Figure 15-6 Price $20+ Marginal Cost 100 150 200 Quantity Marginal Revenue Refer to Figure 15-6. What is the deadweight loss caused by a profit-maximizing monopoly? O O $150 $200 $250 Os300 A monopolist faces market demand given by P - 60 - Q. For this market, MR = 90 - 2Q and MC - Q. What price will the monopolist charge in order to maximize profits? O $20 O $30 O so Osso In Canada,...
A monopolist faces the following demand curve: Q = 80 – 0.2P Where Q is the...
A monopolist faces the following demand curve: Q = 80 – 0.2P Where Q is the weekly production and P is the price, measured in $/unit. The firm’s cost function is given by C = 100 + 20Q2 . Assuming the firm maximizes profits, Find the equation describing the marginal revenue (MR) curve. What is the level of production (Q), price (P), and total profit (π) per week? If the government decides to levy a per-unit tax of 50 $/unit...
Scenario A: A monopolist faces the following demand curve, marginal revenue curve, total cost curve for its product: Q=3500-5p MR= 250-Q TC=15Q MC=100 What level of output maximizes total revenue? What is the profit maximizing level of output? What is profit maximizing price? How much profit does the monopolist earn? Suppose that a tax of $10 for each unit produced is imposed by state government. What is the profit maximizing level of output
please answer all questions!
Figure 15-6 Price $20+ Marginal Cost 100 150 200 Quantity Marginal Revenue Refer to Figure 15-6. What is the deadweight loss caused by a profit-maximizing monopoly? O O $150 $200 $250 Os300 A monopolist faces market demand given by P - 60 - Q. For this market, MR = 90 - 2Q and MC - Q. What price will the monopolist charge in order to maximize profits? O $20 O $30 O so Osso In Canada,...
Most questions answered within 3 hours.
-
Function 4: my-map
In CLISP define your own function that duplicates the
functionality of mapcar from...
asked 15 minutes ago -
Imagine you are progressing very well
during your job interview and you are confidently prepared to...
asked 15 minutes ago -
You have 2.50 L of a 0.450 M HCOOH and 0.550 M HCOONa buffer
solution. (Ka...
asked 17 minutes ago -
The Maxit Corporation has a standard costing system in which
variable manufacturing overhead is assigned to...
asked 35 minutes ago -
Let M = 8.00kg, m = 6.00kg, θ = 40.00, and the coefficient of
kinetic friction...
asked 52 minutes ago -
Java. For C through H True or false?
c. Primitive variables must be objects.
d. Integer...
asked 57 minutes ago -
Write a program that turns a 32-bit numeric value (e.g.,
0xFFFFh) and converts it to a...
asked 58 minutes ago -
A motor produces a torque of 0.25 N m at an angular velocity of
7200 revolutions...
asked 1 hour ago -
***Please answer the below java question***
Are static methods inheritable? Can they be overridden?
asked 1 hour ago -
In reaching her destination, a backpacker walks with an average
velocity of 1.13 m/s, due west....
asked 1 hour ago -
Write two C programs that run a
server program and a client program concurrently.
Server program:...
asked 1 hour ago -
Executive Program Practical Connection Assignment
Subject : Operations Security.
Assignment:
Provide a reflection of at least...
asked 1 hour ago