Market elasticity is -3. Marginal cost is 24. Price is given by MC x (e / e + 1) where e is elasticity
P = 24 x (-3/-2) = $36
Hence the profit maximizing price is $36 per unit
Firm X is a monopolist that faces market demand with elasticity equal to -3, and Firm...
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.
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.
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?
esions -3 Pely on the following information: Firm B is a monopolist that faces market demand Q 200 -2P. Firm B's tota 3. What is Firm B's profit maximizing output level (2)? l cost is given by TC() 20 200 + 200. (Hint: Inverse demand is given by P 100-,so total revenue is TR marginal revenue is MR = 100-Q) 1000-9,sa 4. What is Firm B's profit maximizing price (P')? 5. How much profit is Firm B earning given this...
Suppose that a monopolist faces a constant marginal cost of 6 and a constant (firm) elasticity of demand of -2. Using the Lerner Index, what is the monopoly price and what is the mark-up (difference between price and marginal cost)?
Part E-H Assume a profit-maximizing monopolist faces a market demand given by P = (12,000 – 90Q)/100 and long run total and marginal cost given by LRTC = 5Q + Q2 + 40 (Note: The answer to this question must be hand-written.): a) Find the equation of the marginal revenue curve corresponding to the market demand curve. b) Find the equation for the marginal cost function. c) Find the profit-maximizing quantity of output for the monopoly and the price the...
Suppose a monopolist faces one market with the following demand curve: ?2(?2) = 1000 − 2?2 Let the marginal cost be $20 per unit. What is the firm’s optimal output? What is the profit-maximizing price? Suppose the government requires the monopolist to charge a price that is equal to the socially optimal price. What is this price? What is the socially optimal level of output?
is $10/unit, use the markup formula to find elasticity of demand. Firm E is a monopolist that sells its output at a price of $20/unit. demand of -5, what is Firm E's marginal cost of production? If it is facing elasticity of
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?
Questions 7 - 9 use the following information: A monopolist faces inverse market demand of P = 230 – , and has Total Cost given by TC(Q) = 5Q2 + 10Q + 1000. 7. (20 points) Find this monopolist's profit maximizing output level. 8. Find this monopolist's profit maximizing price. 9. How much profit is this monopolist earning?