ZuoTi.Pro
Question

Suppose a monopolisti has a demand curve that can be expressed as P -19 minus Q....

Suppose a monopolisti has a demand curve that can be expressed as P -19 minus Q. Turn on the police marginal revenue curve can be expressed as MR-90-2Q.
The monopolist has constant marginal cost and average total cost of $10. Find the deadweight loss of a profit maximizing monopolist

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

Homework Answers

Answer #1

Please note that, you have given the demand curve is P = 19-Q, at this demand price at profit maximising comes in negative which is not possible. Therefore I have taken the demand curve P = 90-Q. If you have any doubts, kindly ask in comment.

solution- Given; P= too MRE 90-0 go- 20 mc = ATC= 10 we knows that for profit maximization; MR = mc go- 2a = 10 zs = 80 0 = 4

0 0
Add a comment
Know the answer?
Add Answer to:
Suppose a monopolisti has a demand curve that can be expressed as P -19 minus Q....
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

  • You are a monopolist in a market with an inverse demand curve of: P=10-Q. Your marginal...

    You are a monopolist in a market with an inverse demand curve of: P=10-Q. Your marginal revenue is: MR(Q)=10-2Q. Your cost function is: C(Q)=2Q, and your marginal cost of production is: MC(Q)=2. a) Solve for your profit- maximizing level of output, Q*, and the market price, P*. b) How much profit do you earn?

  • Uniform pricing monopolist has the following demand curve for its product: C(Q)=20Q, P=100-Q. The Marginal Cost...

    Uniform pricing monopolist has the following demand curve for its product: C(Q)=20Q, P=100-Q. The Marginal Cost is MC=20 and the Marginal Revenue is MR=100-2Q. 1. Find the monopolist Quantity and Price. 2.Find the Deadweight loss relative to the perfectly competitive outcome. 3. A. Calculate the welfare for the monopoly market, before and after the introduction of a price ceiling. B. Which scenario do the consumers prefer?

  • Suppose a price searching firm faces a demand curve given by Q = 30−.5P, and has...

    Suppose a price searching firm faces a demand curve given by Q = 30−.5P, and has an average cost curve given by AC = 8. a. Find the equations for the marginal revenue curve and the marginal cost curve.    b. Find the profit maximizing level of output and the profit maximizing price. At this combination, what is the level of firm profit? What is the level of deadweight loss?

  • Problem 1e. The slope of the demand curve indicates that if the price of Fluff increases...

    Problem 1e. The slope of the demand curve indicates that if the price of Fluff increases by 20 cents, consumers will buy one less unit. Determine what happens to profit if price is increased by calculating the new profit level for Fluff when price is set 20 cents higher than the profit-maximizing price. problem 2 Probem 3 Consider the graph, which illustrates the demand for Fluff. Fluff can be produced at a constant marginal and average total cost of $4...

  • 1. Suppose that a single-price monopolist faces the demand function P 100 Q where I is...

    1. Suppose that a single-price monopolist faces the demand function P 100 Q where I is average weekly household income, and that the firm's marginal cost function is given by MC(Q) 2Q. The firm has no fixed costs. = (a) If the average weekly household income is $600, find the firm's marginal revenue function. (b) What is the firm's profit-maximizing quantity of output? At what price will the firm sell that output? What will the firm's marginal cost be? (c)...

  • 1. (25 points) Suppose that a monopolist faces the inverse demand curve: P 100-Q and produces goods at a marginal c...

    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?...

  • 1. Assume that the demand curve is given by Q = 1000 – 0.25P. What is...

    1. Assume that the demand curve is given by Q = 1000 – 0.25P. What is the inverse demand curve? B) Using the inverse demand curve you solved for in 1, solve for the total revenue for this Monopolist. C) Using the total revenue curve you solved for in 2, solve for the marginal revenue curve. D) Assume that Marginal costs are given by 100 + 2Q. What is the profit-maximizing quantity and price for the monopolist? E) Now, turn...

  • Consider a monopolist facing the demand curve p = 90 − 2q with cost function c(q) = 0.25q^2 . (a) Find the profit-maximi...

    Consider a monopolist facing the demand curve p = 90 − 2q with cost function c(q) = 0.25q^2 . (a) Find the profit-maximizing quantity qm and price pm. What are the monopolist’s profits? (b) What is the value of the Lerner index at qm? (c) Find the efficient quantity and draw a graph depicting the deadweight loss under monopoly.

  • A monopoly faces the demand curve P = 12 - 1.0Q,

    A monopoly faces the demand curve P = 12 - 1.0Q, where P is measured in dollars per unit and Q in thousands of units. The monopolist has a constant average cost of $4.00 per unit. Draw the average and marginal revenue curves and the average and marginal cost curves. 1.) Using the line drawing tool, draw the average revenue curve and label it 'AR'.  2.) Using the line drawing tool, draw the marginal revenue curve and label it 'MR'.  3.) Using the line drawing tool,...

  • Suppose a monopolist has TC = 40 + 10Q + Q2, and the demand curve it...

    Suppose a monopolist has TC = 40 + 10Q + Q2, and the demand curve it faces is p = 130 - 2Q. What is the Lerner index of this profit-maximizing monopolist? Question 13 options: A) 0.50 B) 0.35 C) 0.222 D) 0.444 The above figure shows the demand and cost curves facing a monopolist. This profit-maximizing monopoly has a revenue equal to (Hint: Solve for the MR equation) Question 7 options: A) $5200. B) $7500. C) $8000. D) $1000.

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