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the profit maximise price and output
Economic Profit and Loss
5000 is Economic profit
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4. Suppose that GNN produces treatment medicine for a rare blood disease that FDA awards them...
Suppose Pfizer develops a revolutionary drug that cures the Crohn's Disease an inflammatory bowel disease. The...
Suppose Pfizer develops a revolutionary drug that cures the Crohn's Disease an inflammatory bowel disease. The drug is protected by patent for 5 years making Pfizer the de facto monopoly in the market for this particular medicinal need. 6. Suppose that the marginal cost of drug is low and constant at $100 per tablet. The market demand for the drug is described as P-2000 0.5Qd. What is the profit maximizing point of production for Pfizer? What is the corresponding price?...
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?...
Suppose a perfectly Competitive firms minimum average variable cost is $1 when it produces 50. If...
Suppose a perfectly Competitive firms minimum average variable cost is $1 when it produces 50. If the price is $2 and the firm's marginal cost is $2 the firm should Continue to produce, but produce less than 50 Continue to operate, but produce more than 50 Shut down Continue to produce 50 To maximize economic profit of perfectly competitive firm: will sell its goods below the market price all of the above will sell its goods above the market price...
Suppose a firm with cost structure c(y)= y2 + 2y +4 is the only producer of...
Suppose a firm with cost structure c(y)= y2 + 2y +4 is the only producer of the good in the market. Market demand is given as y(p)= 40 - 2p What is the profit-maximizing quantity for this firm? Suppose a firm with cost structure c(y)= y + 2y + 4 is the only producer of the good in the market. Market demand is given as y(p)= 40 - 2p What price will the firm charge? Suppose a firm with cost...
Please help! Suppose a firm with cost structure c(y)=y^2+2y+4 is the only producer of the good in the market. Market demand is given as y(p)=40−2p What is the profit-maximizing quantity for this firm?
Suppose a firm with a cost structurec(y)=y2+2y+4is the only producer of the good in the market. Market demand is given asy(p)=40−2pWhat is the profit-maximizing quantity for this firm?
JUST THE QUESTION 16 PLEASE THE FINAL PART OF C IS DEADWEIGHT LOSS AND COMPARE THEM...
JUST THE QUESTION 16 PLEASE THE FINAL PART OF C IS DEADWEIGHT
LOSS AND COMPARE THEM WITH YOUR FINDINGS ON A
co
(b) each firm produces (c) each firm is a price taker. (d) there are few firms in the market. le) each firm observes a horizontal demand curve. Short Questions (10 pts.) 16. A monopoly faces a market demand curve given by Q = 60 - P and a marginal revenue curve given by MR-60 - 20. If MC...
Suppose a profit maximizing monopolist has total cost and marginal cost as follow:
Suppose a profit maximizing monopolist has total cost and marginal
cost as follow:1. Suppose a profit-maximizing monopolist has total cost and marginal cost as follow: \(\mathrm{TC}=0.1 Q^{2}+Q+10\) and \(\mathrm{MC}=0.2 Q+1\). It faces the demand curve \(\mathrm{Q}=35-5^{\mathrm{P}} .(35\) points \()\)a) What are the price, output, and profit for this monopolist?b) Carefully draw the diagram that illustrates your answers.c) What are the equilibrium price, output, and total profit if this is a perfectly competitive market?d) Compare the results between monopoly and perfect...
Question 3 (32 marks) a The market of popcom is perfectly competitive. The market demand curve...
Question 3 (32 marks) a The market of popcom is perfectly competitive. The market demand curve and supply curve are as follows: Demand: Qp = 2000-P Supply: 2 = 1400 +2P Firm K is one of the many firms producing popcorn in the market. The total cost function and marginal cost function are as follows: TC(q) =1250 +30 +29 MC(q) - 30 +49 i At what output level (g) would the average total cost be minimized? (6 marks) ii What...
Suppose Barefeet is a monopolist that produces and sells Ooh boots, an amazingly trendy brand with...
Suppose Barefeet is a monopolist that produces and sells Ooh boots, an amazingly trendy brand with no close substitutes. The following graph shows the market demand and marginal revenue (MR) curves Barefeet faces, as well as its marginal cost (MC), which is constant at $20 per pair of Ooh boots. For simplicity, assume that fixed costs are equal to zero; this, combined with the fact that Barefeet's marginal cost is constant, means that its marginal cost curve is also equal...
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 Pfizer develops a revolutionary drug that cures the Crohn's Disease an inflammatory bowel disease. The drug is protected by patent for 5 years making Pfizer the de facto monopoly in the market for this particular medicinal need. 6. Suppose that the marginal cost of drug is low and constant at $100 per tablet. The market demand for the drug is described as P-2000 0.5Qd. What is the profit maximizing point of production for Pfizer? What is the corresponding price?...
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?...
Suppose a firm with cost structure c(y)= y2 + 2y +4 is the only producer of the good in the market. Market demand is given as y(p)= 40 - 2p What is the profit-maximizing quantity for this firm? Suppose a firm with cost structure c(y)= y + 2y + 4 is the only producer of the good in the market. Market demand is given as y(p)= 40 - 2p What price will the firm charge? Suppose a firm with cost...
JUST THE QUESTION 16 PLEASE THE FINAL PART OF C IS DEADWEIGHT
LOSS AND COMPARE THEM WITH YOUR FINDINGS ON A
co
(b) each firm produces (c) each firm is a price taker. (d) there are few firms in the market. le) each firm observes a horizontal demand curve. Short Questions (10 pts.) 16. A monopoly faces a market demand curve given by Q = 60 - P and a marginal revenue curve given by MR-60 - 20. If MC...
Suppose a profit maximizing monopolist has total cost and marginal
cost as follow:1. Suppose a profit-maximizing monopolist has total cost and marginal cost as follow: \(\mathrm{TC}=0.1 Q^{2}+Q+10\) and \(\mathrm{MC}=0.2 Q+1\). It faces the demand curve \(\mathrm{Q}=35-5^{\mathrm{P}} .(35\) points \()\)a) What are the price, output, and profit for this monopolist?b) Carefully draw the diagram that illustrates your answers.c) What are the equilibrium price, output, and total profit if this is a perfectly competitive market?d) Compare the results between monopoly and perfect...
Question 3 (32 marks) a The market of popcom is perfectly competitive. The market demand curve and supply curve are as follows: Demand: Qp = 2000-P Supply: 2 = 1400 +2P Firm K is one of the many firms producing popcorn in the market. The total cost function and marginal cost function are as follows: TC(q) =1250 +30 +29 MC(q) - 30 +49 i At what output level (g) would the average total cost be minimized? (6 marks) ii What...
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...
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