Question

Suppose that a firms demand curve is given by P 14 0.5 Q What is the profit-maximizing price if total cost is TC 3.Q?

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Answer

the firm produces at MR=MC

MC=dTC/dQ=3

MR=14-Q ........ an MR curve is double sloped than an inverse linear demand curve

equating both

14-Q=3

Q=11 units

the firm produces 11 units

P=14-0.5*11

=8.5

The price is $8.5

Add a comment
Know the answer?
Add Answer to:
Suppose that a firm's demand curve is given by P 14 0.5 Q What is the profit-maximizing price if total cost is TC 3.Q?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

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
  • Suppose that a firm's demand curve is given by P = 14 - 0.5Q What is...

    Suppose that a firm's demand curve is given by P = 14 - 0.5Q What is the profit-maximizing quantity if total cost is TC = 3.Q?

  • A profit maximizing monopolist faces demand curve P-120 -Q and total cost of TC-900 MQ Determine...

    A profit maximizing monopolist faces demand curve P-120 -Q and total cost of TC-900 MQ Determine the value of M for which the monopolist will earn zero economic profit.

  • Demand: P= 120 - 0.5 Q Total Cost: TC= 1 Q 2 Part 1: Find the...

    Demand: P= 120 - 0.5 Q Total Cost: TC= 1 Q 2 Part 1: Find the profit-Maximizing Q of the Monopoly   Part 2: Find The profit-Maximizing price of the Monopoly   Part 3: Find the Total Profit at the profit maximizing quantity   Part 4: Find the amount of consumer surplus at the profit maximizing quantity   Part 5: Find the deadweight loss at the profit maximizing quantity  

  • Consider a monopolist firm facing an inverse demand curve given by P(Q) 2700-9Q. The firm's total...

    Consider a monopolist firm facing an inverse demand curve given by P(Q) 2700-9Q. The firm's total cost is given by c(Q) 11,000+900Q (a) Show your work in solving for the firm's profit-maximizing quantity and price. What is (b) Plot this firm's revenue and total cost functions. Illustrate the profit-maximizing quantity (c) Now plot this firm's inverse demand, marginal revenue, and marginal cost curves. Il- the maximized value of profit? on this graph, as well as the firm's maximized profit level....

  • 2. Suppose that a firm faces the demand curve. P 300-40. where P denotes price in...

    2. Suppose that a firm faces the demand curve. P 300-40. where P denotes price in dollars and O denotes total unit sales. The cost equation is TC 300+92Q. a. Determine the firm's profit-maximizing output and price. 2 points b. Given the output (Q) value from part a, compute Total cost and Marginal cost when the cost equation is TC 300+92Q: 1 point c. Suppose that there is a change in the production process so that the cost equation becomes...

  • 2. Suppose that a firm faces the demand curve, P 300-4Q, where P denotes price in...

    2. Suppose that a firm faces the demand curve, P 300-4Q, where P denotes price in dollars and Q denotes total unit sales. The cost equation is TC 300 +92Q. a.Determine the firm's profit-maximizing output and price. 2 points b. Gven the output (Q) value from part a, compute Total cost and Marginal cost when the cost equation is TC 300 +92Q: 1 point c. Suppose that there is a change in the production process so that the cost equation...

  • Consider a monopolist firm facing an inverse demand curve given by P(Q) 2700 9Q The firm's...

    Consider a monopolist firm facing an inverse demand curve given by P(Q) 2700 9Q The firm's total cost is given by C() 11,000+9000 (a) Show your work in solving for the firm's profit-maximizing quantity and price. What is the maximized value of profit? (b) Plot this firm's revenue and total cost functions. Illustrate the profit-maximizing quantity on this graph, as well as the firm's maximized profit level (c) Now plot this firm's inverse demand, marginal revenue, and marginal cost curves....

  • 3. Consider a uniform-price monopolist that faces demand curve P() 14 2Q and faces a total...

    3. Consider a uniform-price monopolist that faces demand curve P() 14 2Q and faces a total cost TC() 20 (a) Calculate the profit maximizing price and quantity erw erwyat er Patt Q= (b) Determine the consumer surplus, producer surplus, and deadweight loss erwyat erwy erwyatt CS = el DWL =

  • The inverse demand curve a monopoly faces is p=20Q^−1/2. The​ firm's cost curve is C(Q)=4Q. What...

    The inverse demand curve a monopoly faces is p=20Q^−1/2. The​ firm's cost curve is C(Q)=4Q. What is the​ profit-maximizing solution? ​ (Round all numeric to two decimal​ places.) The​ profit-maximizing quantity is 6.25. The​ profit-maximizing price is ​$8. What is the​ firm's economic​ profit? The firm earns a profit of $_________ ​(Round your response to two decimal​ places.)

  • The inverse demand curve a monopoly faces is p= 120-20. The firm's cost curve is C(Q)=...

    The inverse demand curve a monopoly faces is p= 120-20. The firm's cost curve is C(Q)= 30 +6Q. What is the profit-maximizing solution? The profit-maximizing quantity is . (Round your answer to two decimal places.) The profit-maximizing price is $ . (round your answer to two decimal places.)

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