Question

2. A publisher brings a new book on the market. The demand for the book is q = 1000 - 20p where q denotes the quantity and p
Please show all work including graphs and write neatly.
0 0
Add a comment Improve this question Transcribed image text
Answer #1

a) Q=1000-20p

P=50-0.05q

Total revenue= P*Q= (50-0.05q)*q= 50q-0.05q^2

b) Total cost= Fixed cost+ variable cost= 200+1*q=200+q

c) Marginal revenue measures the additional revenue earned by producing one more unit of the book.

Total revenue= 50q-0.05 q^2

Differentiate TR with respect to q to find MR.

MR=dTR/dq= 50-0.1q

When q=1, MR= 50-0.1=49.9

When q=2,MR= 50-0.2=49.8

When q=3, MR= 50-0.3=49.7

When q=4, MR =50-0.4= 49.6

D) Demand curve is downward sloping for monopolist.

Selling another unit raises the revenue by the new lower price level. This effect is also there under perfect competition.

Another effect under monopolist that is absent under perfect competition is that - To sell more the monopolist has to reduce the prices on all the previous units sold. So the revenue from these units falls. Under perfect competition the marginal revenue is equal to price and is constant for all the units sold.

_30 20 of MR Demand 500 1000 m1500 1000 Quantity -МС _1500

No graph is asked in the question, yet the graph for Demand, marginal revenue and marginal cost is being provided.

If it helps kindly upvote

Add a comment
Know the answer?
Add Answer to:
Please show all work including graphs and write neatly. 2. A publisher brings a new book...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • 2. A publisher brings a new book on the market. The demand for the book is...

    2. A publisher brings a new book on the market. The demand for the book is q 1000 20p where q denotes the quantity and p the price of the book. The publisher has to pay an initial cost of 200$ to be able to print the book, and the printing of each book costs 1$. (a) What is the total revenue of the publisher depending on the number of books sold? (b) What is the total cost of the...

  • POLUJOL LLLLS LL. 2. A publisher brings a new book on the market. The demand for...

    POLUJOL LLLLS LL. 2. A publisher brings a new book on the market. The demand for the book! is q = 1000 - 20p where q denotes the quantity and p the price of the book. The publisher has to pay an initial cost of 200$ to be able to print the book, and the printing of each book costs 1$. (a) What is the total revenue of the publisher depending on the number of books sold? (b) What is...

  • 2. A publisher brings a new book on the market. The demand for the book is...

    2. A publisher brings a new book on the market. The demand for the book is q = 500 - 10p where q denotes quantity and p price. The publisher has to pay an initial cost of $100 to be able to print the book, and the printing of each book costs $1. (a) What is the total revenue of the publisher depending on the number of books sold? (b) What is the total cost of the publisher depending on...

  • A publisher brings a new book on the market. The demand for the book is q...

    A publisher brings a new book on the market. The demand for the book is q = 500−10pwhere q denotes quantity and p price. The publisher has to pay an initial cost of $100 to be able to print the book, and the printing of each book costs $1. (a) What is the total revenue of the publisher depending on the number of books sold? (b) What is the total cost of the publisher depending on the number of books...

  • A publisher brings a new book on the market. The demand for the book is q...

    A publisher brings a new book on the market. The demand for the book is q = 500−10pwhere q denotes quantity and p price. The publisher has to pay an initial cost of $100 to be able to print the book, and the printing of each book costs $1. (a) What is the total revenue of the publisher depending on the number of books sold? (b) What is the total cost of the publisher depending on the number of books...

  • A publisher brings a new book on the market. The demand for the book is q...

    A publisher brings a new book on the market. The demand for the book is q = 500−10p where q denotes quantity and p price. The publisher has to pay an initial cost of $100 to be able to print the book, and the printing of each book costs $1. (a) What is the total revenue of the publisher depending on the number of books sold? (b) What is the total cost of the publisher depending on the number of...

  • A publisher brings a new book on the market. The demand for the book is q...

    A publisher brings a new book on the market. The demand for the book is q = 500 – 10p where q denotes quantity and p price. The publisher has to pay an initial cost of $100 to be able to print the book, and the printing of each book costs $1. (a) What is the total revenue of the publisher depending on the number of books sold? (b) What is the total cost of the publisher depending on the...

  • A U.S. textbook publisher is introducing a new economics textbook, Managerial Economics – It is no...

    A U.S. textbook publisher is introducing a new economics textbook, Managerial Economics – It is no Graphing matter, to the domestic market. Each book is produced at a constant marginal cost of $80 per book. Management predicts that annual domestic demand for the book is: PD = 284 – 0.4QD, where PD = price of a book in dollars, and QD denotes the number of books (in thousands). Due to limited printing capabilities, the total capacity for books is set...

  • Please show work! Homework Assignment 1 You must show all your work to earn points ECON...

    Please show work! Homework Assignment 1 You must show all your work to earn points ECON 3125 SP19 Name: 1. Use the graph below to answer the questions: 80 70 50 40 30 20 10 State the equation for the demand curve (inverse demand function) shown in the graph above using the format P.-a-bQ a. b. State the equation for the demand function implied in the graph using the format Q.-c-dP c. Find the equation for Total Revenue, where TR...

  • . A U.S. textbook publisher is introducing a new economics textbook, Managerial Economics -It is no...

    . A U.S. textbook publisher is introducing a new economics textbook, Managerial Economics -It is no Graphing matter, to the domestic market. Each book is produced at a constant marginal cost of $98 per book. Management predicts that annual domestic demand for the book is Po 278 0.3Qo, where Po-price of a book in dollars, and Qp denotes the number of books (as measured in thousands). a. Assuming no costs beyond the MC of $98 per book, state the profit...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT