4. A competitive firm faces a price of P = 120. The firm has costs c(q)...
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...
Practice Question 4. The inverse demand curve a monopoly faces is p = 30 – Q. The firm's total cost function is C(Q) = 0.5Q² and thus marginal cost function is MC(Q) = Q. (a) Determine the monopoly quantity, price and profit, and calculate the CS, PS and social welfare under the monopoly. (b) Determine the socially optimal outcome and calculate the CS, PS and social welfare under the social optimum. (c) Calculate the deadweight loss due to the monopolist...
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...
consider a monopolist who has a cost function of c(q) = 1/4 Q2 this monopolist faces a demand given by Q(p) = 90 -2P. Solve for the profit maximizing price and quantity produced. Calculate their resulting profits. Show this profit maximizing also graphically. label the price and quantity on their curve. please show all steps.
A monopolist has variable costs of VC = q2 and faces a demand curve of P = 24 – q, where P is price and q the quantity sold. If the monopolist sets a single price what is profit (assume there are no fixed costs)?
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 demand Q = 60 – P, and has a TC of Q + 2Q2. Then to maximize profit, the monopolist should produce ____ units of Q. Group of answer choices A. 9.83 B. 12.25 C. 14.11 D. 16.72
Consider a monopolist faces a demand described by Q 100-2P and its cost function is C(Q) 20Q 10. What is the decision by the firm to maximize its profit? What is the price the firm will charge? How much profit does the firm make?
7. Perfectly competitive firm faces P(Q) = P inverse demand curve and its costs are given by a cost function C(Q), assuming that marginal costs are positive. Firm is also taxed at rate t per unit of output. (a) Write down the firm's profit function. Identify the choice variable, and the parameter if the firm maximizes the profit. (b) Write down the FONC for profit maximization. What does this equa- tion solve for? Can you get it explicitly? Discuss. Under...
1. A monopolist faces demand given by P=18-0.50(MR-18-Q) and produces with a constant marginal cost of $10. Assume that there are no fixed costs. i. Solve for the profit-maximizing quantity and price. What is the firm's profit? ii. If this was a competitive market, what would the equilibrium price and quantity be? iii. Graph D, MR, and MC curves for the monopolist. Show the area that represents the social gain if the monopolist was forced to produce and price at...