ZuoTi.Pro
Question

Suppose that the following equations describe a patent-protected monopolist. AR:      P = 4-0.0025(Q) MR:     P = 4-0.005(Q)        ...

Suppose that the following equations describe a patent-protected monopolist.

AR:      P = 4-0.0025(Q)

MR:     P = 4-0.005(Q)        

MC:     P = 0.4+0.003(Q)

If the firm is maximizing profits, what will their total revenue be?

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

Homework Answers

Answer #1

Answer

The firm produces at MR=MC

equating both equations

4-0.005Q=0.4+0.003Q

0.008Q=3.6

Q=3.6/.008

Q=450

P=4-0.0025*450 ..... from AR curve

P=2.875

Total revenue =AR*Q

=2.875*450

=1293.75

The total revenue is $1293.75

0 0
Add a comment
Know the answer?
Add Answer to:
Suppose that the following equations describe a patent-protected monopolist. AR:      P = 4-0.0025(Q) MR:     P = 4-0.005(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

  • A profit maximizing monopolist faces the following information: P = $4, MR = $2, MC =...

    A profit maximizing monopolist faces the following information: P = $4, MR = $2, MC = $1.50. The firm should a) shut down b) increase output c) decrease output d) stay at its current level of output

  • The following table shows demand and marginal cost for a monopolist. Calculate marginal revenue (MR) at...

    The following table shows demand and marginal cost for a monopolist. Calculate marginal revenue (MR) at each quantity. (Enter your response as an integer.) Output (units) (Q) Price per Unit (P) Marginal Revenue Marginal (MR) Cost (MC) 0 10 9 1 2 8 2 3 7 3 4 6 4 5 5 5 A profit-maximizing monopolist will produce units and set a price of $

  • 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)...

  • Scenario A: A monopolist faces the following demand curve, marginal revenue curve, total cost curve for...

    Scenario A: A monopolist faces the following demand curve, marginal revenue curve, total cost curve for its product: Q=3500-5p MR= 250-Q TC=15Q MC=100 What level of output maximizes total revenue? What is the profit maximizing level of output? What is profit maximizing price? How much profit does the monopolist earn? Suppose that a tax of $10 for each unit produced is imposed by state government. What is the profit maximizing level of output

  • A: A monopolist faces the following demand curve, marginal revenue curve, total cost curve for its...

    A: A monopolist faces the following demand curve, marginal revenue curve, total cost curve for its product: Q=3500-5p MR= 250-Q TC=15Q MC=100 What level of output maximizes total revenue? What is the profit-maximizing level of output? What is the profit-maximizing price? How much profit does the monopolist earn? Suppose that a tax of $10 for each unit produced is imposed by the state government. What is the profit-maximizing level of output?

  • A monopolist faces the following demand curve, marginal revenue curve, total cost curve for its product

    Scenario A: A monopolist faces the following demand curve, marginal revenue curve, total cost curve for its product: Q=3500-5p MR= 250-Q TC=150 MC=100 What level of output maximizes total revenue? What is the profit maximizing level of output? What is profit maximizing price? How much profit does the monopolist earn? Suppose that a tax of $10 for each unit produced is imposed by state government. What is the profit maximizing level of output

  • 1. A monopolist faces demand given by P=18-0.50(MR-18-Q) and produces with a constant marginal cost of...

    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...

  • There is only one supplier in the market for widgets, which acts as a monopolist. Suppose...

    There is only one supplier in the market for widgets, which acts as a monopolist. Suppose the monopolist has marginal costs given by MC = 30+QMC = 30+Q. Demand for widgets is given by P = 210−QP = 210−Q. If the monopolist is maximizing their profits, they will choose to produce a quantity of ____ and charge a price of____. Points possible: 1 Question 2 What is the deadweight loss caused by the firm acting as a monopolist instead of...

  • Given the following information for a monopoly firm: Demand: P = 64-4(Q) Marginal revenue: MR =...

    Given the following information for a monopoly firm: Demand: P = 64-4(Q) Marginal revenue: MR = 64 - 8(Q) Marginal cost: MC = 2(0)+10 Average total cost at equilibrium is 30 1. At what output (Q) will this firm maximize profit? 2. At what price (P) will this firm maximize profit 3. What is the total revenue (TR) earned at this output level 4. What is the total cost (TC) accrued at this output 5. What profit is earned Assume...

  • A monopolist faces the following demand curve: Q = 80 – 0.2P Where Q is the...

    A monopolist faces the following demand curve: Q = 80 – 0.2P Where Q is the weekly production and P is the price, measured in $/unit. The firm’s cost function is given by C = 100 + 20Q2 . Assuming the firm maximizes profits, Find the equation describing the marginal revenue (MR) curve. What is the level of production (Q), price (P), and total profit (π) per week? If the government decides to levy a per-unit tax of 50 $/unit...

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