However, if the monopolist operates on elastic part of demand curve then ed> -1. Hence, 0> (1/ed) > -1 which means that (1+ (1/ed) ) >0. Hence MR will be positive and the monopolist can solve for her profit maximizing output level.
Exercise 7. A monopolist faces inverse demand p(y) and cost c(y) with c'> 0 and c"...
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...
Question 6 Suppose that a monopolist faces an inverse demand curve, P(y) = 50 - y, and a cost function, C(Y) = 20y + y2. If this monopolist is able to practice perfect price discrimination, then his total profit will be
Questions 7 - 9 use the following information: A monopolist faces inverse market demand of P = 230 – , and has Total Cost given by TC(Q) = 5Q2 + 10Q + 1000. 7. (20 points) Find this monopolist's profit maximizing output level. 8. Find this monopolist's profit maximizing price. 9. How much profit is this monopolist earning?
A monopolist has a cost curve c(q) = q^2-12q+8 and faces an inverse demand curve p(q) = 80-20q. Find the monopolist price and quantity, (p,q).
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
A monopolist faces the inverse demand function described by p = 100-2q, where q is output. The monopolist has no fixed cost and his marginal cost is $20 at all levels of output. What is the monopolist's profit as a function of his output?
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?
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...
1) A monopolist faces two consumer groups: old and young. The inverse demand of old clients for the output of the monopolist is P=180-5Q. The inverse demand of young clients for the output of the monopolist is P=50-5Q. The cost of supplying any type of client is C(Q)=1000. If the monopolist can price discriminate between the two groups (i.e., charge a different uniform price to each group), a) what price will old clients be charged? b) what price will young...
Suppose a single price monopolist faces the inverse demand curve: P =50– 2Q. Further suppose this monopolist faces a constant MC curve: MC = 10. Compute the welfare loss created when this single monopolist maximizes profits.