Homework Answers
Add Answer to:
4. Monopoly (15 pts) Consider a situation where a monopolist faces the following inverse market demand...
Consider a situation where a monopolist faces the following inverse market demand curve p= 100 –...
Consider a situation where a monopolist faces the following inverse market demand curve p= 100 – 4 and the following cost function TC = 4q+72 a) Derive the marginal revenue and marginal cost functions. b) What are the equilibrium price and quantity if this market behaved as if it were perfectly competitive? c) Calculate the Consumer Surplus, Producer Surplus and Welfare levels under perfect com- petition. d) What are the equilibrium price and quantity when the monopolist produces as a...
3. Monopoly Consider a situation where a monopolist faces the following inverse market demand curve 132...
3. Monopoly Consider a situation where a monopolist faces the following inverse market demand curve 132 - 2a p and the following cost function TС — 12g + 2q* a) Derive the marginal revenue and marginal cost functions b) What are the equilibrium price and quantity if this market behaved as if it were competitive? c) Calculate the Consumer Surplus, Producer Surplus and Welfare levels under perfect petition d) What are the equilibrium price and quantity when the monopolist produces...
A monopolist faces a demand curve P = 210 - 3Q and faces a constant marginal cost MC = 15.
A monopolist faces a demand curve P = 210 - 3Q and faces a constant marginal cost MC = 15. a) Calculate the profit-maximizing monopoly quantity and compute the monopolist's total revenue at the optimal price. d) Suppose that this monopoly opens for competition and the market becomes perfectly competitive. The firms face constant marginal cost MC = 15. Find the long-run perfectly competitive industry price and quantity.
Question 3 A monopolist faces a demand curve given by P = 105 - 30 where...
Question 3 A monopolist faces a demand curve given by P = 105 - 30 where P is the price of the good and Q is the quantity demanded. The marginal cost of production is constant and is equal to $15. There are no fixed costs of production. Hint: To answer the following questions, it may be helpful to draw a graph! What quantity should the monopolist produce in order to maximize profit? What price should the monopolist charge in...
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?...
A monopolist faces a demand curve given by P = 200-10Q
A monopolist faces a demand curve given by P = 200-10Q, where P is the price of the good and Q is the quantity demanded. The marginal cost of production is constant and is equal to $60. There are no fixed costs of production.A) What quantity should the monopolist produce in order to maximize profit?B) What price should the monopolist charge in order to maximize profit?C) How much profit will the monopolist make?D) What is the deadweight loss created by this monopoly...
A monopolist faces a market (inverse) demand curve P = 50 − Q . Its total...
A monopolist faces a market (inverse) demand curve P = 50 − Q . Its total cost is C = 100 + 10Q + Q2 . a. (1 point) What is the competitive equilibrium benchmark in this market? What profit does the firm earn if it produces at this point? b. (2 points) What is the monopoly equilibrium price and quantity? What profit does the firm earn if it produces at this point? c. (2 points) What is the deadweight...
A monopolist faces inverse demand P = on TC(Q) = cQ. (a) Find the optimal price,...
A monopolist faces inverse demand P = on TC(Q) = cQ. (a) Find the optimal price, P, and quantity, QM (b) Solve for the monopolist's optimal profits, TM (c) Graph the equilibrium and show consumer surplus, producer surplus and deadweight loss. Be 150 -3Q and total cost functi careful with the marginal cost curve. (d) Compute CS and PS. These will be functions of the cost parameter c. (e) Compute DWL. Similarly, it will be functions of the cost parameter...
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...
Part E-H Assume a profit-maximizing monopolist faces a market demand given by P = (12,000 –...
Part E-H Assume a profit-maximizing monopolist faces a market demand given by P = (12,000 – 90Q)/100 and long run total and marginal cost given by LRTC = 5Q + Q2 + 40 (Note: The answer to this question must be hand-written.): a) Find the equation of the marginal revenue curve corresponding to the market demand curve. b) Find the equation for the marginal cost function. c) Find the profit-maximizing quantity of output for the monopoly and the price the...
Consider a situation where a monopolist faces the following inverse market demand curve p= 100 – 4 and the following cost function TC = 4q+72 a) Derive the marginal revenue and marginal cost functions. b) What are the equilibrium price and quantity if this market behaved as if it were perfectly competitive? c) Calculate the Consumer Surplus, Producer Surplus and Welfare levels under perfect com- petition. d) What are the equilibrium price and quantity when the monopolist produces as a...
3. Monopoly Consider a situation where a monopolist faces the following inverse market demand curve 132 - 2a p and the following cost function TС — 12g + 2q* a) Derive the marginal revenue and marginal cost functions b) What are the equilibrium price and quantity if this market behaved as if it were competitive? c) Calculate the Consumer Surplus, Producer Surplus and Welfare levels under perfect petition d) What are the equilibrium price and quantity when the monopolist produces...
Question 3 A monopolist faces a demand curve given by P = 105 - 30 where P is the price of the good and Q is the quantity demanded. The marginal cost of production is constant and is equal to $15. There are no fixed costs of production. Hint: To answer the following questions, it may be helpful to draw a graph! What quantity should the monopolist produce in order to maximize profit? What price should the monopolist charge in...
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?...
A monopolist faces inverse demand P = on TC(Q) = cQ. (a) Find the optimal price, P, and quantity, QM (b) Solve for the monopolist's optimal profits, TM (c) Graph the equilibrium and show consumer surplus, producer surplus and deadweight loss. Be 150 -3Q and total cost functi careful with the marginal cost curve. (d) Compute CS and PS. These will be functions of the cost parameter c. (e) Compute DWL. Similarly, it will be functions of the cost parameter...
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...
Most questions answered within 3 hours.
-
China’s income per capital maintained an 8% rate of growth in
recent decades. As a result,...
asked 35 seconds ago -
What steps would you take to institutionalize the controls you’d
select for your organization? Where do...
asked 14 minutes ago -
Learning aquatic zumba is an example of tacit knowledge. true or
false
asked 15 minutes ago -
Table salt contains 39.33 g of sodium per 100 g of salt. The
U.S. Food and...
asked 31 minutes ago -
C&A records the following profit figures for the last six
months in Excel for a linear...
asked 29 minutes ago -
This needs to be done in c++11 and be compatible with g++
compiling
Project description:
Write...
asked 30 minutes ago -
.
NEED ANSWER ASAP
******NEW ANSWER NEVER USED BEFORE****
Write a page paper on conducting marketing...
asked 32 minutes ago -
Assume that capital markets are competitive and that the
international Fisher hypothesis holds. The one-year interest...
asked 59 minutes ago -
Solid potassium phosphate is slowly added to 150 mL of a 0.0518
M calcium nitrate solution....
asked 1 hour ago -
(CO 2) A field can be added to a report to
values for two or more...
asked 3 hours ago -
Identify 3 research scenarios that might provide a low,
medium, and high degree of variability in...
asked 3 hours ago -
how
does gravity affect the trajectory of projectile? what would be the
shape of the trajactory...
asked 4 hours ago