As long as the demand curve lies above the marginal revenue curve for a monopolist, at its profit-maximizing output level, it will charge a price for its product that is
The monopolist will charge the profit maximizing price, it will be above the marginal cost as the marginal revenue and the margial cost for a monopoly are equal. and the MR<P.
The answer is "C".
As long as the demand curve lies above the marginal revenue curve for a monopolist, at...
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
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?
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 1. (7 points) A monopolist faces the following average revenue (demand) curve: P = 300-0.3Q and the monopolist's cost function is given by C(Q) = 8000+0.3Q2 (a) Derive the monopolist's marginal revenue equation. (2 pts) (b) Derive the monopolist's marginal cost equation. (1 pt) (c) What level of output will the monopolist choose in order to maximize its profits? (2 pts) (d) What price will the monopolist receive at the profit-maximizing level of output? (1 pt) (e) Calculate the monopolist's profit when they produce at the profit-maximizing level....
a monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost curve for its product: Q=200-2P MR=100-Q TC=5Q MC=5 What level of output maximizes total revenue? A) 95 B) 0 C) 90 D)100 What is the profit maximizing level output? A)0 B)100 C)90 D)95 How much profit does the monopolist earn? A)4512.50 B)5.00 C)475.00 D)4987.50
marginal revenue A monopolist maximizes profit by choosing the quantity at which marginal revenue equals at that quantity because the demand curve is above the marginal-revenue curve. Profit equals mulitplied by the profit-maximizing quantity Price is and marginal cost average variable cost average cost marginal revenue. A monopolist maximizes profit by choosing the quantity at which marginal revenue equals Price is at that quantity because the demand curve is above the marginal-revenue curve. Profit equals the difference between the price...
The table below shows the demand and cost data for a monopolist in a small town (a) Fill in the missing columns. (b) What output will the monopolist produce? (c) What price will the monopolist charge? (d) What total profit will the monopolist receive at the profit-maximizing level of output? (e) Draw the demand curve for the monopolist's product, the MR curve and the MC curve for the firm. You may draw it freehand and submit the photo. quantity price...
1. In the table below are demand and cost data for a monopolist. Complete the table by filling in the columns for total revenue, marginal revenue, and marginal cost. Then answer the four questions below. Quantity Price Total Revenue Marginal Total Cost Marginal Cost Revenue 0 $34 $20 32 4 26 10 14 a.) What output will the monopolist produce? b.) What price will the monopolist charge? c.) What total profit will the monopolist receive at the profit- maximizing level...
The table below shows the marginal revenue and costs for a monopolist. Demand, Costs, and Revenues Price Quantity Marginal Revenue (dollars) Demanded (dollars) $85 79 150 76 73 250 350 52 61 450 550 28 Marginal Cost dollars) $25 50 85 Average Total Cost (dollars) $139.00 103.30 87.50 80.00 77.00 77.00 Instructions: Enter your answers as a whole number. If you are entering any negative numbers be sure to include a negative sign front of those numbers. in a. What...
help with all these questions The accompanying figure shows the demand curve, marginal revenue curve, marginal cost curve and average total cost curve for a monopolist. Price (5/unit) O NABONN ONA 1 2 MRD 3 4 5 6 7 8 Quantity (units/day) 9 10 The socially optimal level of output is: Multiple Choice O 8 units per day O 10 units per day. 5 units per day. 4 units per day. The accompanying figure shows the demand curve, marginal revenue...