Homework Answers
1) to maximize its profit the firm will produce at a point where its marginal revenue equal its marginal cost.
2) the firm will charge a per unit price of 20. (to get the price we have to solve the above equation by equalising MR with MC.
3) the firm makes a loss of 10 here.
Add Answer to:
Consider a monopolist faces a demand described by Q 100-2P and its cost function is C(Q)...
consider a monopolist who has a cost function of c(q) = 1/4 Q2 this monopolist faces...
consider a monopolist who has a cost function of c(q) = 1/4 Q2 this monopolist faces a demand given by Q(p) = 90 -2P. Solve for the profit maximizing price and quantity produced. Calculate their resulting profits. Show this profit maximizing also graphically. label the price and quantity on their curve. please show all steps.
A monopolist faces the inverse demand function described by p = 100-2q
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 the following demand curve: Q = 260-2P Where Q is the weekly production...
A monopolist faces the following demand curve: Q = 260-2P Where Q is the weekly production and P is the price, measured in $/unit. The firm's cost function is given by C= 20 + 10Q+Q2. Assuming the firm maximizes profits, 1. (10 pts) Find the equation describing the marginal revenue (MR) curve. 2. (20 pts) What is the level of production (Q), price (P), and total profit (TT) per week? 3. (20 pts) If the government decides to levy a...
Consider a monopolist with the cost function C(q) = 6q, facing the market demand function D(p)...
Consider a monopolist with the cost function C(q) = 6q, facing the market demand function D(p) = 20 − 2p. (a) Find the monopoly quantity and price, the monopolist’s profit and the con- sumer surplus. (b) Now suppose that the government gives to the monopolist a subsidy of $2 per unit sold. Find the monopoly quantity and price, the monopolist’s profit, the consumer surplus, and the cost of the subsidy. (c) How does this subsidy affect total surplus (taking into...
suppose a firm faces a demand function Q= 400-2P 3. (20 points) Suppose a firm faces...
suppose a firm faces a demand function Q= 400-2P
3. (20 points) Suppose a firm faces a demand function 0 = 400 - 2P. Costs are C = 138 + 200. (a) Set up the revenue function R. (b) Find Q and P that maximize profit. (c) Suppose fixed costs increase to 200. Show (with math) how this change affects the profit maxi- mizing solution. Who bears the increase in cost? (d) Suppose variable costs increase to 40. Show (with...
1. (25 points) Suppose that a monopolist faces the inverse demand curve: P 100-Q and produces goods at a marginal c...
1. (25 points) Suppose that a monopolist faces the inverse demand curve: P 100-Q and produces goods at a marginal cost of $5. Finally assume that the firm incurs no fixed costs A. Suppose the monopolist lowers the price from $90 to $89. Explain why the firm's marginal revenue is less than the price of the 11th unit sold, $89 (do not answer this question by providing a mathematical equation). B. At what price will the monopolist maximize its profit?...
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
A monopolist faces a demand curve given by P = 200-10Q
A monopolist faces a demand curve given by P = 200-10Q, where P is the price of the good and Q is the quantity demanded. The marginal cost of production is constant and is equal to $60. There are no fixed costs of production.A) What quantity should the monopolist produce in order to maximize profit?B) What price should the monopolist charge in order to maximize profit?C) How much profit will the monopolist make?D) What is the deadweight loss created by this monopoly...
a monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost...
a monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost curve for its product: Q=200-2P MR=100-Q TC=5Q MC=5 What level of output maximizes total revenue? A) 95 B) 0 C) 90 D)100 What is the profit maximizing level output? A)0 B)100 C)90 D)95 How much profit does the monopolist earn? A)4512.50 B)5.00 C)475.00 D)4987.50
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: Q = 260-2P Where Q is the weekly production and P is the price, measured in $/unit. The firm's cost function is given by C= 20 + 10Q+Q2. Assuming the firm maximizes profits, 1. (10 pts) Find the equation describing the marginal revenue (MR) curve. 2. (20 pts) What is the level of production (Q), price (P), and total profit (TT) per week? 3. (20 pts) If the government decides to levy a...
suppose a firm faces a demand function Q= 400-2P
3. (20 points) Suppose a firm faces a demand function 0 = 400 - 2P. Costs are C = 138 + 200. (a) Set up the revenue function R. (b) Find Q and P that maximize profit. (c) Suppose fixed costs increase to 200. Show (with math) how this change affects the profit maxi- mizing solution. Who bears the increase in cost? (d) Suppose variable costs increase to 40. Show (with...
1. (25 points) Suppose that a monopolist faces the inverse demand curve: P 100-Q and produces goods at a marginal cost of $5. Finally assume that the firm incurs no fixed costs A. Suppose the monopolist lowers the price from $90 to $89. Explain why the firm's marginal revenue is less than the price of the 11th unit sold, $89 (do not answer this question by providing a mathematical equation). B. At what price will the monopolist maximize its profit?...
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
Most questions answered within 3 hours.
-
a bottle cap manufacturer with four machines and six operators
wants to see if variation in...
asked 32 minutes ago -
State Farm Insurance studies show that in Colorado, 55% of the
auto insurance claims submitted for...
asked 1 hour ago -
Complete the following reactions which form ethers (A
and B) and cyclic ethers (C-E) as major...
asked 1 hour ago -
in a perfectly elastic collision what is the velocity of ball A
if the original direction...
asked 2 hours ago -
PLEASE ANSWER ALL
1) The pressure of the atmosphere decreases with increasing
altitude in the
Choose...
asked 2 hours ago -
A simple random sample of 25,000 individuals are surveyed in
order to determine the prevalence of...
asked 2 hours ago -
People who do very detailed work close up, such as jewelers,
often can see objects clearly...
asked 2 hours ago -
14 years ago, Blue Lake Corp. issued 30 year to maturity
zero-coupon bonds with a par...
asked 2 hours ago -
Warnerwoods Company uses a perpetual inventory system. It
entered into the following purchases and sales transactions...
asked 2 hours ago -
Equivalent Units of Conversion Costs
The Rolling Department of Oak Ridge Steel Company had 6,842 tons...
asked 2 hours ago -
what does the concept of "core competence" mean? why
is this concept important? How would you...
asked 2 hours ago -
__________ is a type of visualization that is linked to strategy
and used within a formal...
asked 2 hours ago