is $10/unit, use the markup formula to find elasticity of demand. Firm E is a monopolist...
10. Firm X is a monopolist that faces market demand with elasticity equal to -2, and Firm X's marginal cost of output is $24/unit. Use the mark-up formula to find Firm X's profit maximizing price. 11. Firm W is a monopolist that faces market demand with elasticity equal to -3, and Firm W's profit maximizing price is $36/unit. Use the mark-up formula to infer Firm W's marginal cost per unit at its current output level.
12. Firm Z is a monopolist that sells its output at price $40/unit. If Firm Z's marginal cost of production is $32/unit, use the mark-up formula to find the elasticity of demand being faced by Firm Z. (Don't forget to include a minus sign in your answer!)
Firm W is a monopolist that faces market demand with elasticity equal to -2, and Firm W's profit maximizing price is $48/unit. Use the mark-up formula to infer Firm W's marginal cost per unit at its current output level.
Firm X is a monopolist that faces market demand with elasticity equal to -3, and Firm X's marginal cost of output is S24/u. Use the mark-up formula to find Firm X's profit maximizing price
Firm Z is a monopolist that selss output at price $30/unit. If Firm Z's marginal cost of production is $24/unit, use the mark-up formula to find the elasticity of demand being faced by Firm Z. (Don't forget to include a minus sign in your answer!)
Combine the price markup rule with the formula relating the cost function to scale elasticity to express the relationship between scale elasticity, demand elasticity, and price set by a monopolist.
A monopolist firm faces a demand with constant elasticity of negative 1.8. It has a constant marginal cost of $15 per unit and sets a price to maximize profit. If marginal cost should increase by 20 percent, would the price charged also rise by 20 percent? A. Yes. Since the price elasticity of demand is constant, Upper P equals 1.8 MC. Thus, if MC increases by 20 percent, price also increases by 20 percent. B. Yes. Since the price elasticity...
57. A profit-maximizing monopolist faces a downward-sloping demand curve that has a constant elasticity of -3. The firm finds it optimal to charge a price of $12 for its output. What is its marginal cost at this level of output?
A monopolist firm faces a demand with constant elasticity of - 2.8. It has a constant marginal cost of $25 per unit and sets a price to maximize profit. If marginal cost should increase by 15 percent, would the price charged also rise by 15 percent? O A. No. Since the demand curve is downward sloping, a 15 percent increase in MC will cause the price to increase by less than 15 percent. OB. Yes. Since the price elasticity of...
email: Question 1: Define, using the relevant formula, price elasticity monopolist and you are of demand and oxplain its relationship with total revenue Asun.at-綁@ at 80 units of your output at the unit price of 405. Assume, moreover, that you know thal the price elastcity of demand is the mand wered n your sales and on your tiotal revenue af raising the unit price from 405 to 4857 What would be your ansmer Define income-elasticity of demand and its connection...