A monopolist has a total cost function TC = 8Q2 + 100. The inverse demand function...
A monopolist has a total cost function TC = 8Q2 + 100. The inverse demand function for the monopolist is P = 18- Q. What is the optimal price for the monopolist and what is consumer surplus
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A monopolist has a total cost function TC = 8Q2 + 100. The
inverse demand function...
A monopolist’s inverse demand is P=500-2Q, the total cost function is TC=50Q2 + 1000Q and Marginal...
A monopolist’s inverse demand is P=500-2Q, the total cost function is TC=50Q2 + 1000Q and Marginal cost is MC=100Q+100, where Q is thousands of units. a). what price would the monopolist charge to maximize profits and how many units will the monopolist sell? (hint, recall that the slope of the MARGINAL Revenue is twice as steep as the inverse demand curve. b). at the profit-maximizing price, how much profit would the monopolist earn? c). find consumer surplus and Producer surplus...
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...
2. A monopolist has a cost function given by TC 250+q+.004q2. The inverse market demand for...
2. A monopolist has a cost function given by TC 250+q+.004q2. The inverse market demand for boxes is given by p-8-.0010. The monopolist is currently able to exclude rivals from the market because of a special governmental zoning rule. (a) What is its output and what price does it charge for boxes? (b) Calculate the firm's profit at this output level. (c) Calculate the firm's producer's surplus at this output level (d) Calculate the consumer's surplus in this situation
2. A monopolist has a cost function given by TC 250+q+.004q2. The inverse market demand for...
2. A monopolist has a cost function given by TC 250+q+.004q2. The inverse market demand for boxes is given by p 8-.0010. The monopolist is currently able to exclude rivals from the market because of a special governmental zoning rule. (a) What is its output and what price does it charge for boxes? (b) Calculate the firm's profit at this output level. (c) Calculate the firm's producer's surplus at this output level. (d) Calculate the consumer's surplus in this situation.
2. A monopolist has a cost function given by TC -250+q+.004q2. The inverse market demand for...
2. A monopolist has a cost function given by TC -250+q+.004q2. The inverse market demand for boxes is given by p = governmental zoning rule. (a) What is its output and what price does it charge for boxes? (b) Calculate the firm's profit at this output level. (c) Calculate the firm's producer's surplus at this output level. (d) Calculate the consumer's surplus in this situation. 8-.001Q. The monopolist is currently able to exclude rivals from the market because of a...
2. A monopolist has a cost function given by TC 250+q+.004q2. The inverse market demand for...
2. A monopolist has a cost function given by TC 250+q+.004q2. The inverse market demand for boxes is given by p 8-.0010. The monopolist is currently able to exclude rivals from the market because of a special governmental zoning rule. (a) What is its output and what price does it charge for boxes? (b) Calculate the firm's profit at this output level. (c) Calculate the firm's producer's surplus at this output level. (d) Calculate the consumer's surplus in this situation....
A monopolist has demand function Q(P)-ap-ε (with lel > 1) and total cost function TC(Q)-cQ (a)...
A monopolist has demand function Q(P)-ap-ε (with lel > 1) and total cost function TC(Q)-cQ (a) Show that the demand elasticity is -e (b) Find the firm's optimal price as a function of c and ε. (c) What happens to price as є ічі.e. є approaches 1 from the right side of the number line)? (d) What is the monopoly's profit-maximizing output?
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...
A monopolist has a cost function given by c(y) = y and faces an inverse demand...
A monopolist has a cost function given by c(y) = y and faces an inverse demand curve given by P(y) = 156.00 - y, where P is the per-unit price and y is the quantity of output sold. Assume this monopolist cannot discriminate and charges a single price. What is the profit-maximizing level of output? What is its profit-maximizing price? $ Part 2 (2 points) See Hint Assume you want to choose a price ceiling for this monopolist so as...
2. A monopolist has a cost function given by TC 250+q+.004q. The inverse market demand for...
2. A monopolist has a cost function given by TC 250+q+.004q. The inverse market demand for boxes is given by p 8-.0010. The monopolist is curranty able to exclude rivals from the market becaus of a spocial governmental zoning rule (a) What is its output and what price does it charge for boxes? (b) Calculate the firm's profit at this output level. (c) Calculate the firm's producer's surplus at this output level. (d) Calculate the consumer's surplus in this situation....
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...
2. A monopolist has a cost function given by TC 250+q+.004q2. The inverse market demand for boxes is given by p-8-.0010. The monopolist is currently able to exclude rivals from the market because of a special governmental zoning rule. (a) What is its output and what price does it charge for boxes? (b) Calculate the firm's profit at this output level. (c) Calculate the firm's producer's surplus at this output level (d) Calculate the consumer's surplus in this situation
2. A monopolist has a cost function given by TC 250+q+.004q2. The inverse market demand for boxes is given by p 8-.0010. The monopolist is currently able to exclude rivals from the market because of a special governmental zoning rule. (a) What is its output and what price does it charge for boxes? (b) Calculate the firm's profit at this output level. (c) Calculate the firm's producer's surplus at this output level. (d) Calculate the consumer's surplus in this situation.
2. A monopolist has a cost function given by TC -250+q+.004q2. The inverse market demand for boxes is given by p = governmental zoning rule. (a) What is its output and what price does it charge for boxes? (b) Calculate the firm's profit at this output level. (c) Calculate the firm's producer's surplus at this output level. (d) Calculate the consumer's surplus in this situation. 8-.001Q. The monopolist is currently able to exclude rivals from the market because of a...
2. A monopolist has a cost function given by TC 250+q+.004q2. The inverse market demand for boxes is given by p 8-.0010. The monopolist is currently able to exclude rivals from the market because of a special governmental zoning rule. (a) What is its output and what price does it charge for boxes? (b) Calculate the firm's profit at this output level. (c) Calculate the firm's producer's surplus at this output level. (d) Calculate the consumer's surplus in this situation....
A monopolist has demand function Q(P)-ap-ε (with lel > 1) and total cost function TC(Q)-cQ (a) Show that the demand elasticity is -e (b) Find the firm's optimal price as a function of c and ε. (c) What happens to price as є ічі.e. є approaches 1 from the right side of the number line)? (d) What is the monopoly's profit-maximizing output?
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...
A monopolist has a cost function given by c(y) = y and faces an inverse demand curve given by P(y) = 156.00 - y, where P is the per-unit price and y is the quantity of output sold. Assume this monopolist cannot discriminate and charges a single price. What is the profit-maximizing level of output? What is its profit-maximizing price? $ Part 2 (2 points) See Hint Assume you want to choose a price ceiling for this monopolist so as...
2. A monopolist has a cost function given by TC 250+q+.004q. The inverse market demand for boxes is given by p 8-.0010. The monopolist is curranty able to exclude rivals from the market becaus of a spocial governmental zoning rule (a) What is its output and what price does it charge for boxes? (b) Calculate the firm's profit at this output level. (c) Calculate the firm's producer's surplus at this output level. (d) Calculate the consumer's surplus in this situation....
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