1. A monopolist has the profit function π(Q)-PlQIQ-TC(Q). Derive the inverse elasticity rule: P- MC1

Question

Question

Answer 1

Answer #1

A montb Lp roo: dte -Ta.drisp + pCa)·44|-drt@ =。 de dlviding balh Stl by p

Answer 2

Similar Homework Help Questions

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.
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

A monopolist faces inverse market demand of P = 140- TC(Q) = 20° + 10Q +...

A monopolist faces inverse market demand of P = 140- TC(Q) = 20° + 10Q + 200. and has Total Cost given by (20 points) Find this monopolist's profit maximizing output level. Find this monopolist's profit maximizing price How much profit is this monopolist earning?
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?
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 faces demand Q = 60 – P, and has a TC of Q +...

A monopolist faces demand Q = 60 – P, and has a TC of Q + 2Q2. Then to maximize profit, the monopolist should produce ____ units of Q. Group of answer choices A. 9.83 B. 12.25 C. 14.11 D. 16.72
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 has a cost function C(Q) = 202 + Q He faces an inverse demand...

A monopolist has a cost function C(Q) = 202 + Q He faces an inverse demand curve p = 25 – 29 What is the profit-maximising price for the monopolist? 06 09 011 13 A none of the above