A firm faces the following average revenue (demand) curve: P= 135 -0.020 where Q is weekly...
A firm faces the following average revenue (demand) curve: P = 130 - 0.02 where Q is weekly production and P is price, measured in cents per unit. The firm's cost function is given by C = 50Q + 20,000. Assume that the firm maximizes profits. a. What is the level of production, price, and total profit per week? (Round all responses to two decimal places.) The equilibrium quantity is 2000 units, the price is 90 cents, and the total...
A firm faces the following average revenue (demand) curve: P= 125 -0.02Q where Q is weekly production and P is price, measured in cents per unit. The firm's cost function is given by C = 45Q + 20,000. Assume that the firm maximizes profits. a. What is the level of production, price, and total profit per week? (Round all responses to two decimal places.) The equilibrium quantity is units, the price is cents, and the total profit is $ per...
A firm faces the following average revenue (demand) curve: P = 120 – 0.02Q where Q is weekly production and P is price, measured in cents per unit. The firm's cost function is given by TC = 60Q + 25,000. Assume that the firm maximizes profits. Calculate the level of production, price, and total profit per week.
Exercise 2. A monopolist faces the following demand curve: Q 10,000 100P Where Q is the weekly production and P is the price, measured in S/unit. The firm's cost function is given by C 50Q 30,000. Assuming the firm maximizes profits a. Find the equation describing the marginal revenue curve b. What is the level of production, price, and total profit per week? c. If the government decides to levy a tax of 10 $/unit on this product, what will...
A monopolist faces the following demand curve: Q = 260-2P Where Q is the weekly production and P is the price, measured in $/unit. The firm's cost function is given by C= 20 + 10Q+Q2. Assuming the firm maximizes profits, 1. (10 pts) Find the equation describing the marginal revenue (MR) curve. 2. (20 pts) What is the level of production (Q), price (P), and total profit (TT) per week? 3. (20 pts) If the government decides to levy a...
A monopolist faces the following demand curve: Q = 80 – 0.2P Where Q is the weekly production and P is the price, measured in $/unit. The firm’s cost function is given by C = 100 + 20Q2 . Assuming the firm maximizes profits, Find the equation describing the marginal revenue (MR) curve. What is the level of production (Q), price (P), and total profit (π) per week? If the government decides to levy a per-unit tax of 50 $/unit...
16 A monopoly faces the following average revenue (demand) curve: P = 240 - 0.040, where Q is the weekly production and P is the price, measured in dollars per unit. The monopoly's cost function is given by the following function: C = 1800 - 75,000 Assuming that the monopoly always maximises profits, what is the price at which the goods are sold? (2 points) O $226.68 O $210 Answer cannot be determined from the given information $0 $223.32
4) A firm faces the demand curve, P-80-3Q, and has the cost equation, What is the equation for the firm's total revenue? 200+20Q. a) b) What is the equation for the firm's marginal revenue? c) What is the quantity that maximizes total revenue? d) Find the optimal quantity and price for the firm if they are trying to maximize profit e) What is the firm's profit at the price and quantity in (d)? f) Now suppose that the demand for...
7. Perfectly competitive firm faces P(Q) = P inverse demand curve and its costs are given by a cost function C(Q), assuming that marginal costs are positive. Firm is also taxed at rate t per unit of output. (a) Write down the firm's profit function. Identify the choice variable, and the parameter if the firm maximizes the profit. (b) Write down the FONC for profit maximization. What does this equa- tion solve for? Can you get it explicitly? Discuss. Under...
1. Suppose that a single-price monopolist faces the demand function P 100 Q where I is average weekly household income, and that the firm's marginal cost function is given by MC(Q) 2Q. The firm has no fixed costs. = (a) If the average weekly household income is $600, find the firm's marginal revenue function. (b) What is the firm's profit-maximizing quantity of output? At what price will the firm sell that output? What will the firm's marginal cost be? (c)...