Will a monopolist ever produce at a price less than 25? Explain.
Answer the following questions based on the demand curve: Q = 100 – 2P Determine the...
A monopolist faces the following demand curve: Q = 260-2P Where Q is the weekly production and P is the price, measured in $/unit. The firm's cost function is given by C= 20 + 10Q+Q2. Assuming the firm maximizes profits, 1. (10 pts) Find the equation describing the marginal revenue (MR) curve. 2. (20 pts) What is the level of production (Q), price (P), and total profit (TT) per week? 3. (20 pts) If the government decides to levy a...
1. (25 points) Suppose that a monopolist faces the inverse demand curve: P 100-Q and produces goods at a marginal cost of $5. Finally assume that the firm incurs no fixed costs A. Suppose the monopolist lowers the price from $90 to $89. Explain why the firm's marginal revenue is less than the price of the 11th unit sold, $89 (do not answer this question by providing a mathematical equation). B. At what price will the monopolist maximize its profit?...
The following questions are based upon the firm demand curve for a food given by: Q = 12-4P+2Px+8INC Where Q is the quantity demanded, P is the price of the good, Px is the price of another good, and INCis income. 1. (1 pt.) If P=10, Px=10 and INC=20, what is the price elasticity of demand, Ep? 2. (1 pt.) At P=10, this firm is pricing on the elastic/inelastic region of its demand curve. 3. (1 pt.) At P=10, the...
The demand curve for an industry's product is given by the equation Q。 32-2P (P is measured in S) At what price will the elasticity of demand be equal to 1 in absolute value? (a) $6 (b) $7 (c) $8 (d) $9
Consider this equation of a demand curve: Qd = 500 – 2P, where Qp is quantity demanded and P is price. a. Find the (QD,P) pair at which the point price elasticity of demand, e, is equal to –1. What is the value of total revenue at this point? b. Where does this QD,P) pair from part (a) sit on the demand curve? Sketch the demand curve and label the point from part (a).
If Q = 400 – 2P, at what price is revenue maximized at? For the demand equation P = 36 - 2Q, what Price will maximize total revenue? If TC=40+6QTC=40+6Q and EP=−3EP=−3 what is the optimal price to be charged? If TC=75+15QTC=75+15Q and EP=−2EP=−2 is P=$30 the optimal price?
A monopolist faces the following demand curve: Q = 80 – 0.2P Where Q is the weekly production and P is the price, measured in $/unit. The firm’s cost function is given by C = 100 + 20Q2 . Assuming the firm maximizes profits, Find the equation describing the marginal revenue (MR) curve. What is the level of production (Q), price (P), and total profit (π) per week? If the government decides to levy a per-unit tax of 50 $/unit...
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...
5. Assume a market demand curve of D(P) = 60−2P and a fringe supply curve of S(P) = P − 5. Assume a cost curve for the incumbent of C(Q) = 10 + 4Q. Find the market outcome in terms of price and quantity both for a monopolist not facing a fringe and a large dominant firm facing a fringe. Be sure to both solve for and graph the dominant firm’s demand and marginal revenue curves [in both the regions...
uppose the demand curve for a product is given by Q = 18 - 2P+1PS where is the price of the product and Ps is the price of a substitute good. The price of the substitute good is $2.80. Suppose P 5050. The price elasticity of demand is -0.05. (Enter your response rounded to two decimal places) The cross-price elasticity of demand is 0.14. (Enter your response rounded to two decimal places.) Suppose the price of the good, P goes...