If p= 12 - 2Q and C= 24 + 2Q + 0.5Q2, optimal quantity would equal...
If p= 12 - 2Q and C= 24 + 2Q + 0.5Q2, optimal quantity would equal 2 and optimal price would equal 8. Given this information, should the monopoly operate or shut down?
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If p= 12 - 2Q and C= 24 + 2Q + 0.5Q2, optimal
quantity would equal...
A company faces an inverse demand curve of p = 17 − 2Q and its cost...
A company faces an inverse demand curve of p = 17 − 2Q and its cost function is C = 36 + 2Q + 0.5Q2. 1) What Q* maximizes the monopoly’s profit (or minimizes its loss)? 2) At Q* , what is the price and profit? Under what condition should the company shut down?
24.If the inverse demand curve a monopoly faces is p = 100 - 2Q, and MC is constant at 16, then profit maximization...
24.If the inverse demand curve a monopoly faces is p = 100 - 2Q, and MC is constant at 16, then profit maximization is achieved when the monopoly sets price equal to A) 16. B) 21. C) 25. D) 58. 25. If the inverse demand curve a monopoly faces is p = 100 - 2Q, and MC is constant at 16, then maximum profit A) equals $336. B) equals $882. C) equals $1,218. D) cannot be determined solely from the...
3. Show that MR follows the notion "same intercept, twice the slope" of demand. 4. Is...
3. Show that MR follows the notion "same intercept, twice the slope" of demand. 4. Is a monopoly the most socially optimal market? How does a monopoly differ from a perfectly competitive market? Explain and show in a graph. What is the difference in welfare? 5. At what point would a monopoly decide to shut down in the short-run? In the long run? 6. A firm facing demand curve p= 24-Q and MC=2Q has a new demand curve of p=36-2Q...
5. A monopolist faces a demand curve P = 60 – 2Q and initially faces a...
5. A monopolist faces a demand curve P = 60 – 2Q and initially faces a constant marginal cost MC = 4. (a) Calculate the profit-maximizing monopoly quantity and price, and compute the monopolist's total rev- enue and profits at the optimal price. (b) Suppose that the monopolist's marginal cost in- creases to MC = 8. Verify that the monopolist's total revenue goes down. (c) Suppose that all firms in a perfectly competitive equilibrium had a constant marginal cost MC...
MR = 100 - 2q MC = 4 + 2q Under Perfect Competition EQ Price = 68 EQ Quantity = 32 CS = 512 PS = 1024 TW = 1536 Under M...
MR = 100 - 2q
MC = 4 + 2q
Under Perfect Competition
EQ Price = 68
EQ Quantity = 32
CS = 512
PS = 1024
TW = 1536
Under Monopoly
EQ Quantity = 24
EQ Price = 76
Now ...
Calculate the Consumer Surplus, Producer Surplus and Welfare
levels under monopoly.
How much deadweight loss does the monopolist create?
What could the government do to regulate the monopolist?
Consider a situation where a monopolist faces the following inverse...
Given: Q = 50 - P and MC = 4+2Q. a) Determine the equilibrium price and quantity if this industry were purely compe...
Given: Q = 50 - P and MC = 4+2Q. a) Determine the equilibrium price and quantity if this industry were purely competitive. b) Determine the equilibrium price and quantity if this industry were a profit tot maximizing monopolist.com broc) Determine the dollar value of the deadweight loss if this were a monopolized industry by completing the following table: Consumer Surplus Producer Surplus ! Total or Pure Competition g Y upeve n TOO THOD a 10 U Monopoly Monopoly til...
Question 12 1 pts In the graph below if the price persists at P*, the profit...
Question 12 1 pts In the graph below if the price persists at P*, the profit maximizing firm will Price AVC MC P* AFC Quantity Screenshot(Alt + A) shut down in the long run. o have a strategy that cannot be predicted without an ATC curve. O shut down immediately. o operate indefinitely.
2 Monopoly (9 points) Silecro has a monopoly for silent velcro. Their demand is p 300-2Q and thei...
Please solve step by step so I can fully understand
the process. Thank you !
2 Monopoly (9 points) Silecro has a monopoly for silent velcro. Their demand is p 300-2Q and their cost is C(Q)- 1922 +60Q+Q2. (a) Find the profit-maximizing quantity and price. (2) (b) What fraction of the price is markup, what fraction is cost? (2) firm, HipStore?, sells indie music products: vinyl, concert tickets, merchandise etc. The bought up by a bands under contract only last...
We are considering a market with marginal cost of P=100+2Q and a demand of P=500-2Q. Use...
We are considering a market with marginal cost of P=100+2Q and a demand of P=500-2Q. Use that information to answer the following questions. a. Find the market equilibrium (price and quantity in the market). b. Find producer and consumer surplus. c. Now imagine production of this good created a negative externality of 1$ per unit of output. Find the socially optimal outcome (price and quantity) taking this externality into account. d. Find consumer and producer surplus at the socially efficient...
A representative consumer's demand for shirts is P=20-2Q. The MC of production is constant at $12....
A representative consumer's demand for shirts is P=20-2Q. The MC of production is constant at $12. What is the optimal number of shirts for the firm to sell in a package, and what price should it charge? Please show step by step.
24.If the inverse demand curve a monopoly faces is p = 100 - 2Q, and MC is constant at 16, then profit maximization is achieved when the monopoly sets price equal to A) 16. B) 21. C) 25. D) 58. 25. If the inverse demand curve a monopoly faces is p = 100 - 2Q, and MC is constant at 16, then maximum profit A) equals $336. B) equals $882. C) equals $1,218. D) cannot be determined solely from the...
3. Show that MR follows the notion "same intercept, twice the slope" of demand. 4. Is a monopoly the most socially optimal market? How does a monopoly differ from a perfectly competitive market? Explain and show in a graph. What is the difference in welfare? 5. At what point would a monopoly decide to shut down in the short-run? In the long run? 6. A firm facing demand curve p= 24-Q and MC=2Q has a new demand curve of p=36-2Q...
5. A monopolist faces a demand curve P = 60 – 2Q and initially faces a constant marginal cost MC = 4. (a) Calculate the profit-maximizing monopoly quantity and price, and compute the monopolist's total rev- enue and profits at the optimal price. (b) Suppose that the monopolist's marginal cost in- creases to MC = 8. Verify that the monopolist's total revenue goes down. (c) Suppose that all firms in a perfectly competitive equilibrium had a constant marginal cost MC...
MR = 100 - 2q
MC = 4 + 2q
Under Perfect Competition
EQ Price = 68
EQ Quantity = 32
CS = 512
PS = 1024
TW = 1536
Under Monopoly
EQ Quantity = 24
EQ Price = 76
Now ...
Calculate the Consumer Surplus, Producer Surplus and Welfare
levels under monopoly.
How much deadweight loss does the monopolist create?
What could the government do to regulate the monopolist?
Consider a situation where a monopolist faces the following inverse...
Given: Q = 50 - P and MC = 4+2Q. a) Determine the equilibrium price and quantity if this industry were purely competitive. b) Determine the equilibrium price and quantity if this industry were a profit tot maximizing monopolist.com broc) Determine the dollar value of the deadweight loss if this were a monopolized industry by completing the following table: Consumer Surplus Producer Surplus ! Total or Pure Competition g Y upeve n TOO THOD a 10 U Monopoly Monopoly til...
Question 12 1 pts In the graph below if the price persists at P*, the profit maximizing firm will Price AVC MC P* AFC Quantity Screenshot(Alt + A) shut down in the long run. o have a strategy that cannot be predicted without an ATC curve. O shut down immediately. o operate indefinitely.
Please solve step by step so I can fully understand
the process. Thank you !
2 Monopoly (9 points) Silecro has a monopoly for silent velcro. Their demand is p 300-2Q and their cost is C(Q)- 1922 +60Q+Q2. (a) Find the profit-maximizing quantity and price. (2) (b) What fraction of the price is markup, what fraction is cost? (2) firm, HipStore?, sells indie music products: vinyl, concert tickets, merchandise etc. The bought up by a bands under contract only last...
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