Please show work. Company A: Demand is 80-.2P=Q Fixed Cost is $200 Variable Cost is $60...
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Please show work.
Company A:
Demand is 80-.2P=Q
Fixed Cost is $200
Variable Cost is $60...
In a market, the inverse demand is P = 60 - Q. A monopoly company operating...
In a market, the inverse demand is P = 60 - Q. A monopoly company operating in this market has the cost function C = 200. (a) What is the marginal cost of the company? What are the fixed costs? (b) Illustrate demand, marginal cost, and marginal revenue in a figure. (c) What is the profit-maximizing quantity? Explain why. What is the price thus? Illustrate in the figure. (d) Now suppose that the cost function is instead C=F+Q', which means...
1. A monopoly is facing an inverse demand curve that is p=200-5q. There is no fixed cost and the marginal cost of produc...
1. A monopoly is facing an inverse demand curve that is
p=200-5q. There is no fixed cost and the marginal cost of
production is given and it is equal to 50.
Find the total revenue function.
Find marginal revenue (MR).
Draw a graph showing inverse demand, MR, and marginal cost
(MC).
Find the quantity (q) that maximizes the profit.
Find price (p) that maximizes the profit.
Find total cost (TC), total revenue (TR), and profit made by
this firm.
Find...
suppose a firm faces a demand function Q= 400-2P 3. (20 points) Suppose a firm faces...
suppose a firm faces a demand function Q= 400-2P
3. (20 points) Suppose a firm faces a demand function 0 = 400 - 2P. Costs are C = 138 + 200. (a) Set up the revenue function R. (b) Find Q and P that maximize profit. (c) Suppose fixed costs increase to 200. Show (with math) how this change affects the profit maxi- mizing solution. Who bears the increase in cost? (d) Suppose variable costs increase to 40. Show (with...
Willy's widgets, a monopoly, faces the following demand schedule (sales of widgets per month): Price $20 30 40 50 60 70 80 90 100 Quantity 40 35 30 25 20 15 10 5 0 Calculate marginal revenue over each interval in the schedule (for example, between Q
Willy's widgets, a monopoly, faces the following demand schedule (sales of widgets per month): Price $20 30 40 50 60 70 80 90 100 Quantity 40 35 30 25 20 15 10 5 0 Calculate marginal revenue over each interval in the schedule (for example, between Q = 40 and Q=35). Recall that the revenue is the added revenue from an additional unit of production/sales and assume MR is constant within each interval. If marginal cost is constant at $20...
Problem 1: Suppose that the market demand function is given by q-80-2p. All firms in the...
Problem 1: Suppose that the market demand function is given by q-80-2p. All firms in the industry have marginal cost of 10 and no fixed cost. In this problem, the firms compete in quantities. (a) What is the equilibrium price, quantity, consumer surplus, profit (producer surplus) and deadweight loss if there is only one firm in the industry? (b) Now answer the same question if there are two firms in the industry (duopoly). How does your answer compare to the...
Suppose demand in a market is P 120 Q 240 2P This is a monopoly market,...
Suppose demand in a market is P 120 Q 240 2P This is a monopoly market, where MC = 30. There are no fixed costs. (a) Illustrate demand, marginal cost and marginal revenue in a figure (b) What is the profit-maximizing quantity? Explain why. How big is the profit? (e) How large is the socio-economically optimal quantity? Explain why. How big is the loss of welfare if you instead choose the quantity that maximizes the profits of the monopoly company?...
The supply function is Q- 60 +2p - 20r, and the demand function is Q 260-2p,...
The supply function is Q- 60 +2p - 20r, and the demand function is Q 260-2p, where r is the rental cost of capital. How do the equilibrium price and quantity vary with r? др The effect of r on the equilibrm price iser your resonse as a whole number)
The supply function is Q 60 2p - 20r, and the demand function is Q- 260-2p,...
The supply function is Q 60 2p - 20r, and the demand function is Q- 260-2p, where r is the rental cost of capital. How do the equilibrium price and quantity vary with r? The effect of r on the equilibrium price is (Enter your resonse as a whole number.) The effect of r on the equilibrium quantity isEnter your resonse as a whole number.) op
Show work please A monopolist's inverse demand function is P= 150 – 3Q. The company produces...
Show work please
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: a. Provide the equation for the monopolist's marginal revenue function. (Hint: Recall that Q1 + Q2 = Q.) MR(Q) = 150-C6 Q4-06 Q2 b. Determine the profit-maximizing level of output for each facility. Output for...
A firm’s demand function is p=60-0.5Q If fixed cost are 10 and variable cost are Q+3...
A firm’s demand function is p=60-0.5Q If fixed cost are 10 and variable cost are Q+3 per unit, find the maximum profit. Q2. Which of the following could represent a function, f(x,y), with first-order partial derivatives af/ax = 3xy(xy+2) af/ay=x^2(2xy+3) Q3. Find the value of dy/dx at the point (-2,1) for the function which is defined implicitly by x^2 - x/y =6 Q4. Find the value of the marginal rate of technical substitution for the production function Q=300 (K^2/3 )(L^1/2)...
In a market, the inverse demand is P = 60 - Q. A monopoly company operating in this market has the cost function C = 200. (a) What is the marginal cost of the company? What are the fixed costs? (b) Illustrate demand, marginal cost, and marginal revenue in a figure. (c) What is the profit-maximizing quantity? Explain why. What is the price thus? Illustrate in the figure. (d) Now suppose that the cost function is instead C=F+Q', which means...
1. A monopoly is facing an inverse demand curve that is
p=200-5q. There is no fixed cost and the marginal cost of
production is given and it is equal to 50.
Find the total revenue function.
Find marginal revenue (MR).
Draw a graph showing inverse demand, MR, and marginal cost
(MC).
Find the quantity (q) that maximizes the profit.
Find price (p) that maximizes the profit.
Find total cost (TC), total revenue (TR), and profit made by
this firm.
Find...
suppose a firm faces a demand function Q= 400-2P
3. (20 points) Suppose a firm faces a demand function 0 = 400 - 2P. Costs are C = 138 + 200. (a) Set up the revenue function R. (b) Find Q and P that maximize profit. (c) Suppose fixed costs increase to 200. Show (with math) how this change affects the profit maxi- mizing solution. Who bears the increase in cost? (d) Suppose variable costs increase to 40. Show (with...
Problem 1: Suppose that the market demand function is given by q-80-2p. All firms in the industry have marginal cost of 10 and no fixed cost. In this problem, the firms compete in quantities. (a) What is the equilibrium price, quantity, consumer surplus, profit (producer surplus) and deadweight loss if there is only one firm in the industry? (b) Now answer the same question if there are two firms in the industry (duopoly). How does your answer compare to the...
Suppose demand in a market is P 120 Q 240 2P This is a monopoly market, where MC = 30. There are no fixed costs. (a) Illustrate demand, marginal cost and marginal revenue in a figure (b) What is the profit-maximizing quantity? Explain why. How big is the profit? (e) How large is the socio-economically optimal quantity? Explain why. How big is the loss of welfare if you instead choose the quantity that maximizes the profits of the monopoly company?...
The supply function is Q- 60 +2p - 20r, and the demand function is Q 260-2p, where r is the rental cost of capital. How do the equilibrium price and quantity vary with r? др The effect of r on the equilibrm price iser your resonse as a whole number)
The supply function is Q 60 2p - 20r, and the demand function is Q- 260-2p, where r is the rental cost of capital. How do the equilibrium price and quantity vary with r? The effect of r on the equilibrium price is (Enter your resonse as a whole number.) The effect of r on the equilibrium quantity isEnter your resonse as a whole number.) op
Show work please
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: a. Provide the equation for the monopolist's marginal revenue function. (Hint: Recall that Q1 + Q2 = Q.) MR(Q) = 150-C6 Q4-06 Q2 b. Determine the profit-maximizing level of output for each facility. Output for...
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