Show work please A monopolist's inverse demand function is P= 150 – 3Q. The company produces...
1. A monopolist’s inverse demand function is P = 150 – 3Q. The company produces output at two facilities. The marginal cost of producing at facility 1 is: MC1= 6Q1 The marginal cost of producing at facility 2 is: MC2= 2Q2 Calculate the profit-maximizing level of output for each facility, and calculate the firm’s profit-maximizing price. Show your work.
I am having a difficult time figuring out part (c). Below is the question. A monopolist’s inverse demand function is P = 150 – 3Q. The company produces output at two facilities; the marginal cost of producing at facility 1 is MC1(Q1) = 6Q1, and the marginal cost of producing at facility 2 is MC2(Q2) = 2Q2. MR(Q) = 150- 6Q1 - 6Q2 Q1 = 5 Q2 = 15 c. Determine the profit-maximizing price.
Please answer me in detail. Thank you. Question 9 Suppose that a monopolist faces a demand curve given by P 120-2Q. A monopolist producing only one product has two plants with the following marginal cost functions: MC1 20+2Q1 and MC2-10+502, where MCi and MC2 are the marginal costs in plants 1 and 2, and Q1 and Q2 are the levels of output in each plant, respectively. (a) Find the monopolist's optimal total output (quantity) and price. b) Find the optimal...
Exercise 1. Your firm produces basketballs. The inverse demand function for your basketballs is given by: P = 100 – 3q. The cost function is C = 8 + 2q². a. Write down a function that states the firm's profit as a function of the amount of output (basketballs produced). b. What is the profit-maximizing amount of output? How much profit does it make when it maximizes profits? Total Revenue? Costs? c. At what minimum price will the firm produce...
3. The market illustrated below has inverse demand p(Q) = 130 - 3Q and industry-wide marginal cost MCQ) = 10 + 2Q. If production is competitive, this is the market (inverse) supply curve. If production is consolidated under a monopolist, this is the monopolist's MC curve. a. Suppose there is a monopolist. Explain how marginal revenue for a monopolist is different than for a firm under perfect competition. Then derive the profit-maximizing market outcome (including the monopoly price and quantity...
A monopolist faces the inverse demand function described by p = 100-2q, where q is output. The monopolist has no fixed cost and his marginal cost is $20 at all levels of output. What is the monopolist's profit as a function of his output?
Consider a monopolist facing the following inverse demand function: P = 200 - Q The total cost function is given by C = 100 + 50Q + 0.5Q^2 What is the monopolist's uniform profit-maximizing price? a. 130 b. 140 c. 150 d. 160
You are a monopolist in a market with an inverse demand curve of: P=10-Q. Your marginal revenue is: MR(Q)=10-2Q. Your cost function is: C(Q)=2Q, and your marginal cost of production is: MC(Q)=2. a) Solve for your profit- maximizing level of output, Q*, and the market price, P*. b) How much profit do you earn?
Two firms figure out that the market inverse demand is P= 81 - Q. Each firm has the cost C(Q)= Q^2. 1. Find the marginal revenue for the individual firms. 2. What is the reaction function for each firm? 3.What is the equilibrium quantity? 4. What is the market price? 5. How much profit does each firm make? 6. In the long-run what do you expect to happen in a market with profits like this? Find the optimal production for...
Two firms are producing identical goods in a market characterized by the inverse demand curve P = 120 – 4Q, where Q is the sum of Firm 1's and Firm 2's output, q1 + q2. Each firm's marginal cost is constant at $20. Graph the reaction function for each firm and indicate the Nash equilibrium.