a. Solve for the optimal output to produce at each plant (Q1*, Q2*).
b. Given this output, what is the firm’s price and maximum profit?
c. Suppose the monopolist is now facing a capacity constraints at plant 2. Due to a labor dispute, there are only enough labor hours to produce 70 units at plant 2. How will this constraint impact the firm’s decision of Q1*, Q2*, price and profit?
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a. Solve for the optimal output to produce at each plant (Q1*,
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b. Given this...
Please answer me in detail. Thank you. Question 9 Suppose that a monopolist faces a demand curve given by P 120-2Q. A m...
Please answer me in detail. Thank you.
Question 9 Suppose that a monopolist faces a demand curve given by P 120-2Q. A monopolist producing only one product has two plants with the following marginal cost functions: MC1 20+2Q1 and MC2-10+502, where MCi and MC2 are the marginal costs in plants 1 and 2, and Q1 and Q2 are the levels of output in each plant, respectively. (a) Find the monopolist's optimal total output (quantity) and price. b) Find the optimal...
b) How much output should the monopolist produce in order to maximize profit? c) How much...
b) How much output should the monopolist produce in order to
maximize profit?
c) How much labor should the firm hire to produce this
output?
d) How Much Capital should the firm hire?
e) What price should the monopolist charge?
f) What is the deadweight loss?
g) What is the Price Elasticity of Demand at the
profit-maximizing price and quantity?
3. Suppose a monopolist has a production function given by Q = L12K12. Therefore, L2 MPL K2 2/12 , and...
Consider a monopolist facing the following inverse demand function: P = 200 - Q The total...
Consider a monopolist facing the following inverse demand function: P = 200 - Q The total cost function is given by C = 100 + 50Q + 0.5Q^2 What is the monopolist's uniform profit-maximizing price? a. 130 b. 140 c. 150 d. 160
of output respectively, suc. Firm 1 and Firm 2 compete as Cournot duopolists, producing q1 and...
of output respectively, suc. Firm 1 and Firm 2 compete as Cournot duopolists, producing q1 and q units that market output Q = q1 + q2. They face market inverse demand of P-400-20. Firm l's Total cost is given by TG, = 2q3. Finn 2's by TC2-2 . 10, what is Firm l's equilibrium profit maximizing output level, qǐ? 11. What is market output in the Cournot equilibrium for this market (so, what is the value of Q. = qi...
produce 16000 units of output. What is the cost minimizing combination of capital and labor for...
produce 16000 units of output. What is the cost minimizing combination of capital and labor for this firm? What is it's minimized cost of producing 16000 units of output? 2.2 Problem 2 In a perfectly competitive market all firms (including potential entrants) have a total cost function given by TC(Q) = 100Q - QP + ', where Q is that firm's output. Therefore, each firm's average cost function is AC(Q) = 100-Q+ Qand each firm's marginal cost function is given...
Suppose a firm’s inverse demand curve is given by P=120-.5Q and its cost equation is C=420+60Q+Q2....
Suppose a firm’s inverse demand curve is given by P=120-.5Q and its cost equation is C=420+60Q+Q2. Find the firm’s optimal quantity, price and profit (1) by using the profit and marginal profit equation and (2) by setting MR equal to MC. Also provide a graph of MR and MC. Suppose instead that the firm can sell any and all of its output at the fixed market price P=120. Find the firm’s optimal output.
Show work please A monopolist's inverse demand function is P= 150 – 3Q. The company produces...
Show work please
A monopolist's inverse demand function is P= 150 – 3Q. The company produces output at two facilities; the marginal cost of producing at facility 1 is MC1(Q1) = 6Q1, and the marginal cost of producing at facility 2 is MC2(Q2) = 2Q2: a. Provide the equation for the monopolist's marginal revenue function. (Hint: Recall that Q1 + Q2 = Q.) MR(Q) = 150-C6 Q4-06 Q2 b. Determine the profit-maximizing level of output for each facility. Output for...
2 3 and 4 b. What is the average variable cost of producing 2 units of output What is the marginal cost of producing 2 units of output? c. The following table summarizes the short-run production f...
2 3 and 4
b. What is the average variable cost of producing 2 units of output What is the marginal cost of producing 2 units of output? c. The following table summarizes the short-run production function for your firm. Your product sells for $5 per unit, labor costs $5 per unit, and the rental price of capital is $25 per unit. Complete the following table, and answer the questions below; 2. 1 5 10 5 30 3 5 60...
Suppose two firms compete by selecting quantities q1 and q2, respectively, with the market price given...
Suppose two firms compete by selecting quantities q1 and q2, respectively, with the market price given by p = 1000-3q1 -3q2. Firm 1 (the incumbent) is already in the market. Firm 2 (the potential entrant) must decide whether or not to enter and, if she enters, how much to produce. First the incumbent commits to its production level q2. The potential entrant, having seen q1, decides whether to enter the industry. If firm 2 chooses to enter, then it selects...
Dumping Assume that a firm is a monopolist at Home facing the inverse-demand curve, P =...
Dumping Assume that a firm is a monopolist at Home facing the inverse-demand curve, P = 10 − Q, but is one of many competitors in the world market, where it can sell its output at a price Pw = 2. Furthermore, assume that the firm’s total cost is given by: T C (Q) = 10 + Q2 . Answer the following questions: (a) Find the optimal level of output that maximizes the firm’s total profits. Is it optimal for...
Please answer me in detail. Thank you.
Question 9 Suppose that a monopolist faces a demand curve given by P 120-2Q. A monopolist producing only one product has two plants with the following marginal cost functions: MC1 20+2Q1 and MC2-10+502, where MCi and MC2 are the marginal costs in plants 1 and 2, and Q1 and Q2 are the levels of output in each plant, respectively. (a) Find the monopolist's optimal total output (quantity) and price. b) Find the optimal...
b) How much output should the monopolist produce in order to
maximize profit?
c) How much labor should the firm hire to produce this
output?
d) How Much Capital should the firm hire?
e) What price should the monopolist charge?
f) What is the deadweight loss?
g) What is the Price Elasticity of Demand at the
profit-maximizing price and quantity?
3. Suppose a monopolist has a production function given by Q = L12K12. Therefore, L2 MPL K2 2/12 , and...
of output respectively, suc. Firm 1 and Firm 2 compete as Cournot duopolists, producing q1 and q units that market output Q = q1 + q2. They face market inverse demand of P-400-20. Firm l's Total cost is given by TG, = 2q3. Finn 2's by TC2-2 . 10, what is Firm l's equilibrium profit maximizing output level, qǐ? 11. What is market output in the Cournot equilibrium for this market (so, what is the value of Q. = qi...
produce 16000 units of output. What is the cost minimizing combination of capital and labor for this firm? What is it's minimized cost of producing 16000 units of output? 2.2 Problem 2 In a perfectly competitive market all firms (including potential entrants) have a total cost function given by TC(Q) = 100Q - QP + ', where Q is that firm's output. Therefore, each firm's average cost function is AC(Q) = 100-Q+ Qand each firm's marginal cost function is given...
Show work please
A monopolist's inverse demand function is P= 150 – 3Q. The company produces output at two facilities; the marginal cost of producing at facility 1 is MC1(Q1) = 6Q1, and the marginal cost of producing at facility 2 is MC2(Q2) = 2Q2: a. Provide the equation for the monopolist's marginal revenue function. (Hint: Recall that Q1 + Q2 = Q.) MR(Q) = 150-C6 Q4-06 Q2 b. Determine the profit-maximizing level of output for each facility. Output for...
2 3 and 4
b. What is the average variable cost of producing 2 units of output What is the marginal cost of producing 2 units of output? c. The following table summarizes the short-run production function for your firm. Your product sells for $5 per unit, labor costs $5 per unit, and the rental price of capital is $25 per unit. Complete the following table, and answer the questions below; 2. 1 5 10 5 30 3 5 60...
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