I just need help with part b. I know how to do part a, but I
don't know how to go about including the competitive equilibrium
for part b 
Homework Answers
5. Suppose demand is of the form D(p)-a - b p (a) Find the function for...
5. Suppose demand is of the form D(p)-a - b p (a) Find the function for marginal revenue for a monopolist. Hint: this is known as the twice as steep rule, and it always applies to linear demand functions for a monopolist. (b) Suppose the firm faces a constant marginal cost, denoted mc. What is the equilibrium price, quantity producer surplus, consumer surplus, and deadweight loss in terms of parameters a, b, and mc if the firm sets the same...
Part E-H Assume a profit-maximizing monopolist faces a market demand given by P = (12,000 –...
Part E-H Assume a profit-maximizing monopolist faces a market demand given by P = (12,000 – 90Q)/100 and long run total and marginal cost given by LRTC = 5Q + Q2 + 40 (Note: The answer to this question must be hand-written.): a) Find the equation of the marginal revenue curve corresponding to the market demand curve. b) Find the equation for the marginal cost function. c) Find the profit-maximizing quantity of output for the monopoly and the price the...
a-d 3) There are 1,000 identical perfectly competitive real-estate fimms selling office space in Syracuse, NY....
a-d
3) There are 1,000 identical perfectly competitive real-estate fimms selling office space in Syracuse, NY. The Marginal Cost of producing each square foot of space is constant and equal to $20. There are no fixed costs of production. So the firm's short-run and long-run cost function is c(q) = 200. The market demand is Q = 10,000 - 250p. a) What is the equilibrium price and quantity of office space in the real estate market in the short-run? How...
Question 2: Consider the market for Florida oranges. The demand for Florida oranges is given by...
Question 2: Consider the market for Florida oranges. The demand for Florida oranges is given by the inverse demand function p = 70 -- 2Q The market cost function for firms that sell Florida oranges is C?(Q) = 100 + 302 Shipping Florida oranges around the country uses trucks that produce C02 gas. For parts (1)-(4), the social cost of this pollution is Cº (Q) = 302 Note that both of these are cost functions, not marginal cost functions. (1)...
3. Monopoly Consider a situation where a monopolist faces the following inverse market demand curve 132...
3. Monopoly Consider a situation where a monopolist faces the following inverse market demand curve 132 - 2a p and the following cost function TС — 12g + 2q* a) Derive the marginal revenue and marginal cost functions b) What are the equilibrium price and quantity if this market behaved as if it were competitive? c) Calculate the Consumer Surplus, Producer Surplus and Welfare levels under perfect petition d) What are the equilibrium price and quantity when the monopolist produces...
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...
A monopolist’s inverse demand is P=500-2Q, the total cost function is TC=50Q2 + 1000Q and Marginal...
A monopolist’s inverse demand is P=500-2Q, the total cost function is TC=50Q2 + 1000Q and Marginal cost is MC=100Q+100, where Q is thousands of units. a). what price would the monopolist charge to maximize profits and how many units will the monopolist sell? (hint, recall that the slope of the MARGINAL Revenue is twice as steep as the inverse demand curve. b). at the profit-maximizing price, how much profit would the monopolist earn? c). find consumer surplus and Producer surplus...
Name: Consider the market for a good where the demand curve facing a firm who has...
Name: Consider the market for a good where the demand curve facing a firm who has considerable market power is given by P = 80 -0.05Q, the marginal revenue curve is given by MR = 80 -0.1Q, and the firm's marginal cost curve is given by MC = 17 + 0.020. a. If the firm behaves like a competitive firm, find equilibrium price and quantity. Graphically identify and calculate consumer and producer surplus. b. If the firm behaves like a...
7) A for-profit firm is bidding on a contract that would make it the sole provider...
7) A for-profit firm is bidding on a contract that would make it the sole provider of trash and recycling pick-up services in a city. The city-wide demand for trash and recycling pick-up is given by Qp = 50,000 - 200P where is measured in tons of material picked up and P is the price per ton. That demand curve implies that the inverse demand (i.e., rewriting the demand equation with as a function of P) for trash and recycling...
Consider a situation where a monopolist faces the following inverse market demand curve p= 100 –...
Consider a situation where a monopolist faces the following inverse market demand curve p= 100 – 4 and the following cost function TC = 4q+72 a) Derive the marginal revenue and marginal cost functions. b) What are the equilibrium price and quantity if this market behaved as if it were perfectly competitive? c) Calculate the Consumer Surplus, Producer Surplus and Welfare levels under perfect com- petition. d) What are the equilibrium price and quantity when the monopolist produces as a...
5. Suppose demand is of the form D(p)-a - b p (a) Find the function for marginal revenue for a monopolist. Hint: this is known as the twice as steep rule, and it always applies to linear demand functions for a monopolist. (b) Suppose the firm faces a constant marginal cost, denoted mc. What is the equilibrium price, quantity producer surplus, consumer surplus, and deadweight loss in terms of parameters a, b, and mc if the firm sets the same...
a-d
3) There are 1,000 identical perfectly competitive real-estate fimms selling office space in Syracuse, NY. The Marginal Cost of producing each square foot of space is constant and equal to $20. There are no fixed costs of production. So the firm's short-run and long-run cost function is c(q) = 200. The market demand is Q = 10,000 - 250p. a) What is the equilibrium price and quantity of office space in the real estate market in the short-run? How...
Question 2: Consider the market for Florida oranges. The demand for Florida oranges is given by the inverse demand function p = 70 -- 2Q The market cost function for firms that sell Florida oranges is C?(Q) = 100 + 302 Shipping Florida oranges around the country uses trucks that produce C02 gas. For parts (1)-(4), the social cost of this pollution is Cº (Q) = 302 Note that both of these are cost functions, not marginal cost functions. (1)...
3. Monopoly Consider a situation where a monopolist faces the following inverse market demand curve 132 - 2a p and the following cost function TС — 12g + 2q* a) Derive the marginal revenue and marginal cost functions b) What are the equilibrium price and quantity if this market behaved as if it were competitive? c) Calculate the Consumer Surplus, Producer Surplus and Welfare levels under perfect petition d) What are the equilibrium price and quantity when the monopolist produces...
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...
Name: Consider the market for a good where the demand curve facing a firm who has considerable market power is given by P = 80 -0.05Q, the marginal revenue curve is given by MR = 80 -0.1Q, and the firm's marginal cost curve is given by MC = 17 + 0.020. a. If the firm behaves like a competitive firm, find equilibrium price and quantity. Graphically identify and calculate consumer and producer surplus. b. If the firm behaves like a...
7) A for-profit firm is bidding on a contract that would make it the sole provider of trash and recycling pick-up services in a city. The city-wide demand for trash and recycling pick-up is given by Qp = 50,000 - 200P where is measured in tons of material picked up and P is the price per ton. That demand curve implies that the inverse demand (i.e., rewriting the demand equation with as a function of P) for trash and recycling...
Consider a situation where a monopolist faces the following inverse market demand curve p= 100 – 4 and the following cost function TC = 4q+72 a) Derive the marginal revenue and marginal cost functions. b) What are the equilibrium price and quantity if this market behaved as if it were perfectly competitive? c) Calculate the Consumer Surplus, Producer Surplus and Welfare levels under perfect com- petition. d) What are the equilibrium price and quantity when the monopolist produces as a...
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