ZuoTi.Pro
Question

Question 3 (worth 25% A monopolist has its total cost s (TC) of production given in Table 4. The (inverse) demand curve it faces in the market is described by this equation: P = a-BQ 5,000-(40)Q.Table 4: Tot al Costs for a Monopoli st TC 800 11181.4 21531.2 31857.8 4 2169.6 2475 6 2782.4 73100.2 8 3436.8 93800.6 10 4200 11 4643.4 125139.2 13 5695.8 14 6321.6 15 7025 16 7814.4 178698.2 18 9684.8 19 10782.6 20 12000 QI TC 21 13345.4 2214827.2 2316453.8 24 18233.6 25 20175 26 22286.4 2724576.2 2827052.8 29 29724.6 30 32600 31 35687.4 3238995.2 33 42531.8 3446305.6 35 50325 36 54598.4 37 59134.2 3863940.8 39 69026.6 0 74400 3(a). Derive the MC and ATC values using the equation MC ΔTCAQ and ATC = TC/Q 3 (b). Draw the MC and ATC curves using the values derived for (a). Draw the inver se demand curve and its correspon ding MR curve. Note: for the MR curve, be sure to use the equation learned in class. MR=a_2bQ 3 (c). What is the price (PM) and quantity (QM) that the monopolist will choose in or der to maximize profit? 3 (d). What is their total profit from the price and quantity combin ation in (c)? 3 (e). What is the con sumer surplus when they charge the price PM from (c)?

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answer)
1A. QİTC MC ATC MR 0 800 5000 1181.40 4920 349.8 765.60 4840 4760 42.40 4680 305.4 495.00 4600 4520 94440 1 1181.4 2 1531.2 3 1857.8 4 2169.6311.8 5 2475 6 2782.4 307.4 7 3100.2317.8 326.6 619.27 463.73

0 0
Add a comment
Know the answer?
Add Answer to:
Question 3 (worth 25% A monopolist has its total cost s (TC) of production given in...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • A monopolist has its total costs (TC) of production given in Table 3. The (inverse) demand curve it faces in the market is described by this equation: P = a − bQ = 3, 000 − (31.15)Q. Table 3: Total Co...

    A monopolist has its total costs (TC) of production given in Table 3. The (inverse) demand curve it faces in the market is described by this equation: P = a − bQ = 3, 000 − (31.15)Q. Table 3: Total Costs for a Monopolist Q TC Q TC 0 800 21 6243.2 1 1131.2 22 6977.6 2 1409.6 23 7810.4 3 1642.4 24 8748.8 4 1836.8 25 9800 5 2000 26 10971.2 6 2139.2 27 12269.6 7 2261.6 28 13702.4...

  • A: A monopolist faces the following demand curve, marginal revenue curve, total cost curve for its...

    A: A monopolist faces the following demand curve, marginal revenue curve, total cost curve for its product: Q=3500-5p MR= 250-Q TC=15Q MC=100 What level of output maximizes total revenue? What is the profit-maximizing level of output? What is the profit-maximizing price? How much profit does the monopolist earn? Suppose that a tax of $10 for each unit produced is imposed by the state government. What is the profit-maximizing level of output?

  • A monopolist faces the following demand curve, marginal revenue curve, total cost curve for its product

    Scenario A: A monopolist faces the following demand curve, marginal revenue curve, total cost curve for its product: Q=3500-5p MR= 250-Q TC=150 MC=100 What level of output maximizes total revenue? What is the profit maximizing level of output? What is profit maximizing price? How much profit does the monopolist earn? Suppose that a tax of $10 for each unit produced is imposed by state government. What is the profit maximizing level of output

  • Problem 2: In problem 1, the monopolist sells a product with a total cost function: TC...

    Problem 2: In problem 1, the monopolist sells a product with a total cost function: TC = 1,000 + 500Q + Q?. The market demand curve is given by the equation: Q = 500 -0.25P But now assume that the government imposes a $100 per unit tax on Q. (a) Who What price and quantity would be expected if the firm is allowed to operate unregulated except for the imposed tax? Show the tax result on your graph of Problem...

  • A monopolist faces a market demand curve given by

    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...

  • Scenario A: A monopolist faces the following demand curve, marginal revenue curve, total cost curve for...

    Scenario A: A monopolist faces the following demand curve, marginal revenue curve, total cost curve for its product: Q=3500-5p MR= 250-Q TC=15Q MC=100 What level of output maximizes total revenue? What is the profit maximizing level of output? What is profit maximizing price? How much profit does the monopolist earn? Suppose that a tax of $10 for each unit produced is imposed by state government. What is the profit maximizing level of output

  • Question 3 (10 points) Suppose a certain city has a monopol city has a monopoly cable-television...

    Question 3 (10 points) Suppose a certain city has a monopol city has a monopoly cable-television company. This company has total costs TC (Hint: using calculus, this means sing calculus, this means MC = 50 since MC is the derivative of TC with respect to output.) The demand in the community is of the form Qo (alternatively, you can write the demand equation as Q. = 30 - 0.1P). • Graphically depict the demand curve as well as the marginal...

  • Based on information given answer the questions below A monopolist has a demand curve given by...

    Based on information given answer the questions below A monopolist has a demand curve given by P = 80 - 4Q and a total cost curve given by TC = 400. 5 The associated marginal cost curve is MC = 40. What is the monopolist's marginal revenue curve? a. MR = 70 - 4Q b. MR = 80 - 8Q c. MR = 70 - 80 d. MR = 56 - Q e. none of the above 6 And what...

  • 2. A monopolist sells a product with a total cost function TC = 1200 +0.502. The...

    2. A monopolist sells a product with a total cost function TC = 1200 +0.502. The market demand curve is given by the equation P= 300- a. Find the profit-maximizing output and price for this monopolist. Is the monopolist profitable? b. Calculate the price elasticity of demand at the monopolist's profit-maximizing price. Also calculate the marginal cost at the monopolist's profit-maximizing output. Verify that the IEPR holds.

  • Assume that a monopolist sells a product with a total cost function: TC=1000 + 500Q +...

    Assume that a monopolist sells a product with a total cost function: TC=1000 + 500Q + Q2 The market demand curve is given by the equation: Q = 500 - 0.25P A. What price and quantity would be expected if the firm can operate completely unregulated? B. The firm has asked you to recommend a price and quantity that would be socially efficient. Recommend a price and quantity to the firm. C. When moving from the socially efficient price and...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT