3. The indirect inverse) demand function facing a single-product monopolist is assumed to be: P-3.5 -0.50...
A monopolist faces a market demand curve given by Q=70-P a. If the monopolist can produce at constant average and marginal costs ofAC-MC-6, what output level will the monopolist choose to maximize profits? What is the price at this output level? What are the monopolist's profits? b. Assume instead that the monopolist has a cost structure where total costs are described by C(Q) = 0.25Q2 - 5Q + 300. With the monopolist facing the same market demand and marginal revenue, what price-quantity combination will be chosen now...
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
A monopolist faces inverse demand P = on TC(Q) = cQ. (a) Find the optimal price, P, and quantity, QM (b) Solve for the monopolist's optimal profits, TM (c) Graph the equilibrium and show consumer surplus, producer surplus and deadweight loss. Be 150 -3Q and total cost functi careful with the marginal cost curve. (d) Compute CS and PS. These will be functions of the cost parameter c. (e) Compute DWL. Similarly, it will be functions of the cost parameter...
A monopolist faces inverse market demand of P = 140- TC(Q) = 20° + 10Q + 200. and has Total Cost given by (20 points) Find this monopolist's profit maximizing output level. Find this monopolist's profit maximizing price How much profit is this monopolist earning?
Dumping Assume that a firm is a monopolist at Home facing the inverse-demand curve, P = 10 − Q, but is one of many competitors in the world market, where it can sell its output at a price Pw = 2. Furthermore, assume that the firm’s total cost is given by: T C (Q) = 10 + Q2 . Answer the following questions: (a) Find the optimal level of output that maximizes the firm’s total profits. Is it optimal for...
Dumping. Assume that a firm is a monopolist at Home facing the inverse-demand curve, P = 10 − Q, but is one of many competitors in the world market, where it can sell its output at a price Pw = 2. Furthermore, assume that the firm’s total cost is given by: T C (Q) = 10 + (Q^2)/2. Answer the following questions: (a) Find the optimal level of output that maximizes the firm’s total profits. Is it optimal for the...
Questions 7 - 9 use the following information: A monopolist faces inverse market demand of P = 230 – , and has Total Cost given by TC(Q) = 5Q2 + 10Q + 1000. 7. (20 points) Find this monopolist's profit maximizing output level. 8. Find this monopolist's profit maximizing price. 9. How much profit is this monopolist earning?
Problem 1. (7 points) A monopolist faces the following average revenue (demand) curve: P = 300-0.3Q and the monopolist's cost function is given by C(Q) = 8000+0.3Q2 (a) Derive the monopolist's marginal revenue equation. (2 pts) (b) Derive the monopolist's marginal cost equation. (1 pt) (c) What level of output will the monopolist choose in order to maximize its profits? (2 pts) (d) What price will the monopolist receive at the profit-maximizing level of output? (1 pt) (e) Calculate the monopolist's profit when they produce at the profit-maximizing level....
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?
A monopolist has a total cost function TC = 8Q2 + 100. The inverse demand function for the monopolist is P = 18- Q. What is the optimal price for the monopolist and what is consumer surplus