In a market, the inverse demand is P = 60 - Q. A monopoly company operating...

Question

Question

In a market, the inverse demand is P = 60 - Q. A monopoly company operating in this market has the cost function C = 200. (a)

business economics

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

(4) PLo-R TO=30 Q MCdTC 20C1) FC=c TR- P.Q 60-8 MR=JTR 60(1)-a 60-20 Pretit nanini stng Caditeu MR MC 2

= २० ॥५45 . Substituting ute ice puuters १ = ८०-२० P =40 New Aunction Cst TC Ft FC F MC Poit-naximign candiHon MR- MC G0-2 IS 90 Mono poly 60 So 30 ২০ C MR 3 c 40 Sc 70 eo (10 Quenthity Pnice

mmmnm Moretely MC So 3 0 ఇం D २० So 60 IS d

Add a comment

Answer 2

Similar Homework Help Questions

2. In a market, the demand is Q = 50 - P. A monopoly company operating...

2. In a market, the demand is Q = 50 - P. A monopoly company operating in this market has the cost function C = 150. (a) Illustrate demand, marginal cost, and marginal revenue in a figure. (b) What is the profit-maximizing quantity? Explain why. What is the price thus? Illustrate in the figure. (c) Now suppose that the cost function is instead C = F+Q? which means that the fixed cost is F and MC = 20. How big...
Suppose demand in a market is P 120 Q 240 2P This is a monopoly market,...

Suppose demand in a market is P 120 Q 240 2P This is a monopoly market, where MC = 30. There are no fixed costs. (a) Illustrate demand, marginal cost and marginal revenue in a figure (b) What is the profit-maximizing quantity? Explain why. How big is the profit? (e) How large is the socio-economically optimal quantity? Explain why. How big is the loss of welfare if you instead choose the quantity that maximizes the profits of the monopoly company?...
Suppose that a monopoly faces inverse market demand function as P = 70−2Q, and its marginal...

Suppose that a monopoly faces inverse market demand function as P = 70−2Q, and its marginal cost function is MC = 40 – Q. Please answer the following two questions: a. What should be the monopoly’s profit-maximizing output? b. What is the monopoly’s price?

Practice Question 4. The inverse demand curve a monopoly faces is p = 30 – Q....

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...
1. A monopoly is facing an inverse demand curve that is p=200-5q. There is no fixed cost and the marginal cost of produc...

1. A monopoly is facing an inverse demand curve that is p=200-5q. There is no fixed cost and the marginal cost of production is given and it is equal to 50. Find the total revenue function. Find marginal revenue (MR). Draw a graph showing inverse demand, MR, and marginal cost (MC). Find the quantity (q) that maximizes the profit. Find price (p) that maximizes the profit. Find total cost (TC), total revenue (TR), and profit made by this firm. Find...
You are a monopolist in a market with an inverse demand curve of: P=10-Q. Your marginal...

You are a monopolist in a market with an inverse demand curve of: P=10-Q. Your marginal revenue is: MR(Q)=10-2Q. Your cost function is: C(Q)=2Q, and your marginal cost of production is: MC(Q)=2. a) Solve for your profit- maximizing level of output, Q*, and the market price, P*. b) How much profit do you earn?

3. The market illustrated below has inverse demand p(Q) = 130 - 3Q and industry-wide marginal...

3. The market illustrated below has inverse demand p(Q) = 130 - 3Q and industry-wide marginal cost MCQ) = 10 + 2Q. If production is competitive, this is the market (inverse) supply curve. If production is consolidated under a monopolist, this is the monopolist's MC curve. a. Suppose there is a monopolist. Explain how marginal revenue for a monopolist is different than for a firm under perfect competition. Then derive the profit-maximizing market outcome (including the monopoly price and quantity...
How do I solve this problem? 4. Benson's Park is a monopolist in the local camping market in the town of West Anderson. They face an inverse demand curve given by P-400-8Q, where Q is the number o...

How do I solve this problem? 4. Benson's Park is a monopolist in the local camping market in the town of West Anderson. They face an inverse demand curve given by P-400-8Q, where Q is the number of tickets they sell. The park's cost function is C(Q)-100+160 Write down Benson's profit function (2 point) Find the first-order condition for profit maximization. (2 points) Find the profit-maximizing price and quantity, and the maximum profit. (3 points) a. b. c. d. Calculate...
Figure 15-6 Price $20+ Marginal Cost 100 150 200 Quantity Marginal Revenue Refer to Figure 15-6. What is the deadweight loss caused by a profit-maximizing monopoly? O O $150 $200 $250 Os300 A monopolist faces market demand given by P - 60 - Q. For this ma

Figure 15-6 Price $20+ Marginal Cost 100 150 200 Quantity Marginal Revenue Refer to Figure 15-6. What is the deadweight loss caused by a profit-maximizing monopoly? O O $150 $200 $250 Os300 A monopolist faces market demand given by P - 60 - Q. For this market, MR = 90 - 2Q and MC - Q. What price will the monopolist charge in order to maximize profits? O $20 O $30 O so Osso In Canada, in the majority of...

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.)

In a market, the inverse demand is P = 60 - Q. A monopoly company operating...

Homework Answers

Add Answer to:
In a market, the inverse demand is P = 60 - Q. A monopoly company operating...

Post as a guest

Earn Coins

2. In a market, the demand is Q = 50 - P. A monopoly company operating...

Suppose demand in a market is P 120 Q 240 2P This is a monopoly market,...

Suppose that a monopoly faces inverse market demand function as P = 70−2Q, and its marginal...

Practice Question 4. The inverse demand curve a monopoly faces is p = 30 – Q....

1. A monopoly is facing an inverse demand curve that is p=200-5q. There is no fixed cost and the marginal cost of produc...

You are a monopolist in a market with an inverse demand curve of: P=10-Q. Your marginal...

3. The market illustrated below has inverse demand p(Q) = 130 - 3Q and industry-wide marginal...

How do I solve this problem? 4. Benson's Park is a monopolist in the local camping market in the town of West Anderson. They face an inverse demand curve given by P-400-8Q, where Q is the number o...

Figure 15-6 Price $20+ Marginal Cost 100 150 200 Quantity Marginal Revenue Refer to Figure 15-6. What is the deadweight loss caused by a profit-maximizing monopoly? O O $150 $200 $250 Os300 A monopolist faces market demand given by P - 60 - Q. For this ma

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

In a market, the inverse demand is P = 60 - Q. A monopoly company operating...

Homework Answers

Add Answer to: In a market, the inverse demand is P = 60 - Q. A monopoly company operating...

Post as a guest

Earn Coins

Add Answer to:
In a market, the inverse demand is P = 60 - Q. A monopoly company operating...