orstops, INC. (DD) is a monopolist in the doorstop industry. ts total cost function the quadratic...
tdSDoorstope, INC.(DD is a monopolist in the doorstop industry its total cost function 1s oiven by the quadratic function of output Cla) 100-5Q+. The inverse demand function for doorstops Pis given by the linear function PIQ)-55-2Q. Nte that the margnal cost C'(Q) is not constant. (Also, it happens to be negative for 0 s Q <2 How much consumer surplus CS and producer surplus PSM and total surplus does DD generate by its profit-maximizing plan? (d) Find the profit-maximizing rate...
Exercise 5. Dayna's Doorstops, Inc. (DD) is a monopolist in the doorstop industry. Its cost is C 100 - 5Q+ Q, and inverse demand is P 55 - 2Q a. What price should DD set to maximize profit? What output does the firm produce? How much profit and consumer surplus does DD generate? b. What would output be if DD acted as a perfect competitor and set MC P? What profit and consumer surplus would then be generated? c. What...
Exercise 5. Dayna's Doorstops, Inc. (DD) is a monopolist in the doorstop industry. Its cost is C = 100 –5Q+Q?, and inverse demand is P= 55 – 20. a. What price should DD set to maximize profit? What output does the firm produce? How much profit and consumer surplus does DD generate? b. What would output be if DD acted as a perfect competitor and set MC = P? What profit and consumer surplus would then be generated? c. What...
Jaina's Shoes, INC. (JS) is a monopolist in the footwear industry. Its total cost function C(⋅) is given by the quadratic function of output C(Q) =100 – 5Q + Q2. The inverse demand function for shoes P(⋅) is given by the linear function P(Q) = 55 – 2Q. Note that the marginal cost C′(Q) is not constant. (Also, it happens to be negative for 0 ≤ Q < 2.5.) (A) Compute the consumer surplus CS^c and producer surplus PS^c generated...
. Suppose TC 10+0.12, MC0.2q. If p 10, the firm's profit on the perfectly competitive market in the short run will be (a) 240 (b) 250 (c) 260 (d) -10 because the firm will shut down. (e) None of the above 4. Dayna's Doorstops, Inc. (DD) is a monopolist in the doorstop industry. Its cost is TC = 100-5q+q2, MC = 2q-5, and the demand function is Q = 55-p (inverse demand is p 55 Q). What price should DD...
2. A monopolist sells a product with a total cost function TC = 1200 +0.502. The market demand curve is given by the equation P= 300- a. Find the profit-maximizing output and price for this monopolist. Is the monopolist profitable? b. Calculate the price elasticity of demand at the monopolist's profit-maximizing price. Also calculate the marginal cost at the monopolist's profit-maximizing output. Verify that the IEPR holds.
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?
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?
A monopolist has demand function Q(P)-ap-ε (with lel > 1) and total cost function TC(Q)-cQ (a) Show that the demand elasticity is -e (b) Find the firm's optimal price as a function of c and ε. (c) What happens to price as є ічі.e. є approaches 1 from the right side of the number line)? (d) What is the monopoly's profit-maximizing output?
a monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost curve for its product: Q=200-2P MR=100-Q TC=5Q MC=5 What level of output maximizes total revenue? A) 95 B) 0 C) 90 D)100 What is the profit maximizing level output? A)0 B)100 C)90 D)95 How much profit does the monopolist earn? A)4512.50 B)5.00 C)475.00 D)4987.50