20. Assume that demand faced by a firm is given by P(q), where price is P and q is the quantity demanded. In this case, marginal revenue MR(q) is:a. MR(q) = (dP(q)/dq) + Pb. MR(q) = (dP(q)/dq).q + Pc. MR(q) = Pd. MR(q) = (dP(q)/dq).q e. MR(q) = (dP(q)/dq).q
c. MR(q) = P
(Total Revenue, TR = Pq
So, Marginal Revenue, MR(q) = d(TR)/dq = P)
20. Assume that demand faced by a firm is given by P(q), where price is P...
18. Consider the demand curve faced by a firm of P = 20 – 2q, where P is price and q is quantity demanded. If the firm is currently charging P = 5, which statement is true? a. The firm is pricing where marginal revenue MR = 0 b. The firm should increase price is t hey wish to increase revenue. c. The firm is selling its output in the elastic range of the demand curve d. The firm should...
detail 1. Given a demand function 250 p q + 50 where p is price and q is quantity demanded (20 <q < 105), the value of price elasticity of demand when q=50 is given by a) -2.5 b) -2 c) -0.5 d) -800 e) -1.5 f) None of the above
In a monopolistic competitive market for blood pressure monitor, suppose the market demand function for the monitor is P=160 – 3Q, where P is the price for monitor, Q and the quantity of monitor demanded. Marginal cost of producing it is MC: P = 20 + Q, where P is the price of the monitor and Q is the quantity of the monitor sold. Use the Twice as Steep Rule, form the marginal revenue function. What are the price and...
1. The quantity demand for kites is given by q(P) (P 10)2, where P is price and q is the quantity demanded. At what price is the price elasticity of demand equal to -1? a. P 1 c. P- 20 d. P- 10 e. P- 22
2. (15 points). The demand function for an oligopolistic market is given by the equation, Q 180-4P, where Q is quantity demanded and P is price. The industry has one dominant firm whose marginal cost function is: MC 12+1Qp, and many small firms, with a total supply function: Qs 20+ P. (a) Derive the demand equation for the dominant oligopoly firm. (b) Determine the dominant oligopoly firm's profit-maximizing out- put and price. (c) Determine the total output of the small...
The demand function for an oligopolistic market is given by the equation, Q = 275 – 4P, where Q is quantity demanded and P is price (Note: inverse demand for the dominant firm here is P = 50 - .2Q). The industry has one dominant firm whose marginal cost function is: MC = 12 + 0.7QD, and many small firms, with a total supply function: QS = 25 + P. In equilibrium, the total output of all small firms is
Given the following information for a monopoly firm: Demand: P = 64-4(Q) Marginal revenue: MR = 64 - 8(Q) Marginal cost: MC = 2(0)+10 Average total cost at equilibrium is 30 1. At what output (Q) will this firm maximize profit? 2. At what price (P) will this firm maximize profit 3. What is the total revenue (TR) earned at this output level 4. What is the total cost (TC) accrued at this output 5. What profit is earned Assume...
(16 points) Cournot Duopoly. Market demand is p(Q) = 50 – 4Q, where Q = 4+ 42. Firm 1's cost function is C (91) = 0, and firm 2 has a cost function C2(92) = 1092- The two firms engage in Cournot competition; they simultaneously choose a quantity and the price adjusts so that the market clears. (a) Formally write firm 1's profit maximization problem (b) Find firm l's best response function. (c) Take as given that firm 2's best...
Scenario: Suppose that the demand is given by: P = 100 – Q Marginal Revenue is MR = 100 – 2Q and Total Cost function is : TC(Q) = 20Q Assume the firm is a price-maker (monopolist). What is the maximum profit?
The demand is given by P = 100 – 2Q, where P is the price and Q is the quantity demanded. Find the price at which the own-price elasticity is – 2.