Homework Answers
ii) at eqm, P = MC
550-2Q = 150
400 = 2Q
Q*= 200, P* = 150
.
now MR = P = 150
π = 0
Bcoz Price = MC = AC = 150
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4) Suppose Microsoft computers has a cost curve equal to C = 150Q and faces a...
4) Suppose Microsoft computers has a cost curve equal to C = a demand curve equal...
4) Suppose Microsoft computers has a cost curve equal to C = a demand curve equal to p = 550 – 2Q. The Bay Area regulators have hired you as a consultant to help them out! i) Draw the firms MR and MC curves, and find its optimal output qm. What would be the firm's profit? ii) If regulators set the price equal to the marginal cost, what would be new price? Draw the firm's new MR and MC curves,...
For question 2, please draw the graph. 4) Suppose Microsoft computers has a cost curve equal...
For question 2, please draw the graph.
4) Suppose Microsoft computers has a cost curve equal to C = 150Q and faces a demand curve equal to p = 550 – 22. The Bay Area regulators have hired you as a consultant to help them out! i) Draw the firms MR and MC curves, and find its optimal output qm. What would be the firm's profit? ii) If regulators set the price equal to the marginal cost, what would be...
Suppose a firm has a cost curve equal to C 7200+150Q. The firm's demand curve is...
Suppose a firm has a cost curve equal to C 7200+150Q. The firm's demand curve is p-550 2Q. (Round all numeric responses to two decimal places,) If regulators set the price equal to the marginal cost, what would be the firm's loss? $ -7200 If the regulators set the price equal to the average cost, what would be the price? S 190.00 What would be the deadweight loss in this case of average cost price regulation? $
4) A firm faces the demand curve, P-80-3Q, and has the cost equation, What is the...
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...
5. A monopolist faces a demand curve P = 60 – 2Q and initially faces a...
5. A monopolist faces a demand curve P = 60 – 2Q and initially faces a constant marginal cost MC = 4. (a) Calculate the profit-maximizing monopoly quantity and price, and compute the monopolist's total rev- enue and profits at the optimal price. (b) Suppose that the monopolist's marginal cost in- creases to MC = 8. Verify that the monopolist's total revenue goes down. (c) Suppose that all firms in a perfectly competitive equilibrium had a constant marginal cost MC...
1. Suppose that a single-price monopolist faces the demand function P 100 Q where I is...
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)...
1. A monopolist faces demand given by P=18-0.50(MR-18-Q) and produces with a constant marginal cost of...
1. A monopolist faces demand given by P=18-0.50(MR-18-Q) and produces with a constant marginal cost of $10. Assume that there are no fixed costs. i. Solve for the profit-maximizing quantity and price. What is the firm's profit? ii. If this was a competitive market, what would the equilibrium price and quantity be? iii. Graph D, MR, and MC curves for the monopolist. Show the area that represents the social gain if the monopolist was forced to produce and price at...
Assume a competitive firm faces a market price of $70, a cost curve of: C =...
Assume a competitive firm faces a market price of $70, a cost curve of: C = 0.0049% + 259 + 750, and marginal cost curve of: MC = 0.012q2 + 25. units, and the profit (to the nearest penny) at this The firm's profit maximizing output level (to the nearest tenth) is output level is $ . In this case, firms will . This will cause the market supply to V. This will continue until the price is equal to...
A monopolist faces a demand curve P = 210 - 3Q and faces a constant marginal cost MC = 15.
A monopolist faces a demand curve P = 210 - 3Q and faces a constant marginal cost MC = 15. a) Calculate the profit-maximizing monopoly quantity and compute the monopolist's total revenue at the optimal price. d) Suppose that this monopoly opens for competition and the market becomes perfectly competitive. The firms face constant marginal cost MC = 15. Find the long-run perfectly competitive industry price and quantity.
Question 3: Consider a monopoly which faces the demand curve P= 55-2Q and having a marginal...
Question 3: Consider a monopoly which faces the demand curve P= 55-2Q and having a marginal cost function MC= 2Q-5. a) (2pts) Calculate the marginal revenue (MR) function. b) (2 pts) State the profit maximizing output rule for the monopoly in the short-run. c) (4 pts) What is the profit maximing output level? Next, calculate the price and the profit of the monopoly?
4) Suppose Microsoft computers has a cost curve equal to C = a demand curve equal to p = 550 – 2Q. The Bay Area regulators have hired you as a consultant to help them out! i) Draw the firms MR and MC curves, and find its optimal output qm. What would be the firm's profit? ii) If regulators set the price equal to the marginal cost, what would be new price? Draw the firm's new MR and MC curves,...
For question 2, please draw the graph.
4) Suppose Microsoft computers has a cost curve equal to C = 150Q and faces a demand curve equal to p = 550 – 22. The Bay Area regulators have hired you as a consultant to help them out! i) Draw the firms MR and MC curves, and find its optimal output qm. What would be the firm's profit? ii) If regulators set the price equal to the marginal cost, what would be...
Suppose a firm has a cost curve equal to C 7200+150Q. The firm's demand curve is p-550 2Q. (Round all numeric responses to two decimal places,) If regulators set the price equal to the marginal cost, what would be the firm's loss? $ -7200 If the regulators set the price equal to the average cost, what would be the price? S 190.00 What would be the deadweight loss in this case of average cost price regulation? $
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...
5. A monopolist faces a demand curve P = 60 – 2Q and initially faces a constant marginal cost MC = 4. (a) Calculate the profit-maximizing monopoly quantity and price, and compute the monopolist's total rev- enue and profits at the optimal price. (b) Suppose that the monopolist's marginal cost in- creases to MC = 8. Verify that the monopolist's total revenue goes down. (c) Suppose that all firms in a perfectly competitive equilibrium had a constant marginal cost MC...
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)...
1. A monopolist faces demand given by P=18-0.50(MR-18-Q) and produces with a constant marginal cost of $10. Assume that there are no fixed costs. i. Solve for the profit-maximizing quantity and price. What is the firm's profit? ii. If this was a competitive market, what would the equilibrium price and quantity be? iii. Graph D, MR, and MC curves for the monopolist. Show the area that represents the social gain if the monopolist was forced to produce and price at...
Assume a competitive firm faces a market price of $70, a cost curve of: C = 0.0049% + 259 + 750, and marginal cost curve of: MC = 0.012q2 + 25. units, and the profit (to the nearest penny) at this The firm's profit maximizing output level (to the nearest tenth) is output level is $ . In this case, firms will . This will cause the market supply to V. This will continue until the price is equal to...
Question 3: Consider a monopoly which faces the demand curve P= 55-2Q and having a marginal cost function MC= 2Q-5. a) (2pts) Calculate the marginal revenue (MR) function. b) (2 pts) State the profit maximizing output rule for the monopoly in the short-run. c) (4 pts) What is the profit maximing output level? Next, calculate the price and the profit of the monopoly?
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