ZuoTi.Pro
Question

Suppose that a firms demand curve is given by P = 14 - 0.5Q What is the profit-maximizing quantity if total cost is TC = 3.Q

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answer
the firm produces at MR=MC
MC=dTC/dQ=3
MR=14-Q ........ an MR curve is double sloped than an inverse linear demand curve
equating both
14-Q=3
Q=11 units
the firm produces 11 units

0 0
Add a comment
Know the answer?
Add Answer to:
Suppose that a firm's demand curve is given by P = 14 - 0.5Q What is...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

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

  • Suppose that a firm's demand curve is given by P 14 0.5 Q What is the profit-maximizing price if total cost is TC 3.Q?

    Suppose that a firm's demand curve is given by P 14 0.5 Q What is the profit-maximizing price if total cost is TC 3.Q?

  • 2. Suppose that a firm faces the demand curve. P 300-40. where P denotes price in...

    2. Suppose that a firm faces the demand curve. P 300-40. where P denotes price in dollars and O denotes total unit sales. The cost equation is TC 300+92Q. a. Determine the firm's profit-maximizing output and price. 2 points b. Given the output (Q) value from part a, compute Total cost and Marginal cost when the cost equation is TC 300+92Q: 1 point c. Suppose that there is a change in the production process so that the cost equation becomes...

  • Consider a monopolist firm facing an inverse demand curve given by P(Q) 2700-9Q. The firm's total...

    Consider a monopolist firm facing an inverse demand curve given by P(Q) 2700-9Q. The firm's total cost is given by c(Q) 11,000+900Q (a) Show your work in solving for the firm's profit-maximizing quantity and price. What is (b) Plot this firm's revenue and total cost functions. Illustrate the profit-maximizing quantity (c) Now plot this firm's inverse demand, marginal revenue, and marginal cost curves. Il- the maximized value of profit? on this graph, as well as the firm's maximized profit level....

  • Consider a monopolist firm facing an inverse demand curve given by P(Q) 2700 9Q The firm's...

    Consider a monopolist firm facing an inverse demand curve given by P(Q) 2700 9Q The firm's total cost is given by C() 11,000+9000 (a) Show your work in solving for the firm's profit-maximizing quantity and price. What is the maximized value of profit? (b) Plot this firm's revenue and total cost functions. Illustrate the profit-maximizing quantity on this graph, as well as the firm's maximized profit level (c) Now plot this firm's inverse demand, marginal revenue, and marginal cost curves....

  • A monopoly faces the demand curve P= 11 -0.5Q, where P is measured in dollars per...

    A monopoly faces the demand curve P= 11 -0.5Q, where P is measured in dollars per unit and Q in thousands of units. The monopolist has a constant average cost of $6.00 per unit. Draw the average and marginal revenue curves and the average and marginal cost curves. 1.) Using the line drawing tool, draw the average revenue curve and label it 'AR'. $/Q 2.) Using the line drawing tool, draw the marginal revenue curve and label it 'MR'. 3.)...

  • 2. Suppose that a firm faces the demand curve, P 300-4Q, where P denotes price in...

    2. Suppose that a firm faces the demand curve, P 300-4Q, where P denotes price in dollars and Q denotes total unit sales. The cost equation is TC 300 +92Q. a.Determine the firm's profit-maximizing output and price. 2 points b. Gven the output (Q) value from part a, compute Total cost and Marginal cost when the cost equation is TC 300 +92Q: 1 point c. Suppose that there is a change in the production process so that the cost equation...

  • The inverse demand curve a monopoly faces is p = 110 -20. The firm's cost curve...

    The inverse demand curve a monopoly faces is p = 110 -20. The firm's cost curve is C(Q)= 10 +6Q What is the profit-maximizing solution? The profit-maximizing quantity is (Round your answer to two decimal places) The profit-maximizing price is $ (round your answer to two decimal places.)

  • The inverse demand curve a monopoly faces is p = 100-2Q. The​ firm's cost curve is...

    The inverse demand curve a monopoly faces is p = 100-2Q. The​ firm's cost curve is C(Q)=30+6Q. What is the​ profit-maximizing solution? The​ profit-maximizing quantity is _____. (Round your answer to two decimal​ places.) The​ profit-maximizing price is $_____ ​(round your answer to two decimal​ places.)

  • The inverse demand curve a monopoly faces is p=20Q^−1/2. The​ firm's cost curve is C(Q)=4Q. What...

    The inverse demand curve a monopoly faces is p=20Q^−1/2. The​ firm's cost curve is C(Q)=4Q. What is the​ profit-maximizing solution? ​ (Round all numeric to two decimal​ places.) The​ profit-maximizing quantity is 6.25. The​ profit-maximizing price is ​$8. What is the​ firm's economic​ profit? The firm earns a profit of $_________ ​(Round your response to two decimal​ places.)

  • The inverse demand curve a monopoly faces is p= 120-20. The firm's cost curve is C(Q)=...

    The inverse demand curve a monopoly faces is p= 120-20. The firm's cost curve is C(Q)= 30 +6Q. What is the profit-maximizing solution? The profit-maximizing quantity is . (Round your answer to two decimal places.) The profit-maximizing price is $ . (round your answer to two decimal places.)

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