A monopoly produces widgets at a marginal cost of $8 per unit and zero fixed costs
A monopoly produces widgets at a marginal cost of $10 per unit and zero fixed costs. It faces an inverse demand function given by P = 50 − Q. Which of the following is the marginal revenue function for the firm? Select one: a. MR = 50 − 2Q b. MR = 100 − Q c. MR = 60 − 2Q d. MR = 50 − Q In producing the efficient amount of a public good, government should take into...
Firm A produces widgets at a constant unit cost of 2 and a fixed cost of 15. It faces market demand P =22 − 2Q. a) If A is profit-maximizing, what price will it set? What will be the quantity sold and profit? b) Calculate the elasticity of demand at this point. What is its relationship to marginal revenue (MR)?
A small monopoly manufacturer of widgets has a constant marginal cost of $15. The demand for this firm's widgets is Q = 110 – 2P Given the above information, compute the social cost of this firm's monopoly power. The social cost is s (Round your response to the nearest penny.) You are given the following information about a monopsonist. The demand is P = 30 - 0.250 the average expenditure curve is AE = 0.5Q, and the marginal expenditure curve...
Suppose a monopolist faces consumer demand given by P 400-5Q with a constant marginal cost of $20 per unit (where marginal cost equals average total cost. assume the firm has no fixed costs) If the monopoly can only charge a single price, then it will earn profits of S(Enter your response rounded as a whole number.) Correspondingly, consumer surplus is S However, if the firm were to practice price discrimination such that consumer surplus becomes profit, then, holding output constant...
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...
A small monopoly manufacturer of widgets has a constant marginal cost of $15. The demand for this firm's widgets is Q = 105 - 2P Given the above information, compute the social cost of this firm's monopoly power. The social cost is $ . (Round your response to the nearest penny.)
A small monopoly manufacturer of widgets has a constant marginal cost of $10. The demand for this firm's widgets is Q = 115-1P. Given the above information, compute the social cost of this firm's monopoly power. The social cost is $ . (Round your response to the nearest penny.)
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...
A monopoly has a constant marginal cost of production of $4 per unit and no fixed costs. In the figure to the right, let D be demand and MR be marginal revenue. 1.) Using the line drawing tool graph the monopoly's marginal cost curve. Label this curve 'MC! 2.) Using the line drawing tool, graph the monopoly's average variable cost curve. Label this curve 'AVC.' 3.) Using the line drawing tool, graph the monopoly's average cost curve. Label this curve...
A monopoly has a constant marginal cost of production of $2 per unit and no fixed costs. In the figure to the right, let D be demand and MR be marginal revenue. TTT 1.) Using the line drawing tool, graph the monopoly's marginal cost curve. Label this curve 'MC.' 2.) Using the line drawing tool, graph the monopoly's average variable cost curve. Label this curve 'AVC.' p, $ per unit 3.) Using the line drawing tool, graph the monopoly's average...