Question

1. Consider a monopolist where the market demand curve for the produce is given by P...

1. Consider a monopolist where the market demand curve for the produce is given by P = 520 - 2Q. This monopolist has marginal costs that can be expressed as MC = 100 + 2Q and total costs that can be expressed as TC = 100Q + Q2 + 50. (Does not need to be done. Only here for reference)

2. Suppose this monopolist from Problem #1 is regulated (i.e. forced to behave like a perfect competition firm) and the price is set to marginal cost and demand is set to supply to find equilibrium quantity.

  1. This regulated firm’s profit maximizing output is =

  2. This regulated firm’s profit maximizing price is =

  3. This regulated firm’s profit maximizing profit is =

  4. This regulated firm’s profit maximizing consumer surplus is =

Homework Answers

Answer #1

Ans.2.

Know the answer?
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
Similar Questions
1. Suppose a monopolist faces the demand for its good or service equal to Q =...
1. Suppose a monopolist faces the demand for its good or service equal to Q = 130 - P. The firm's total cost TC = Q2 + 10Q + 100 and its marginal cost MC = 2Q + 10. The firm's profit maximizing output is 2. Suppose a monopolist faces the demand for its good or service equal to Q = 130 - P. The firm's total cost TC = Q2 + 10Q + 100 and its marginal cost MC...
Consider a monopolist facing a market demand given by P = 100 - 2Q where P...
Consider a monopolist facing a market demand given by P = 100 - 2Q where P Is the price and Q is the quantity. The monopolist produces the good according to the cost function c(Q)=Q2+10 (a) Determine the profit maximizing quantity and price the monopolist will offer in the market (b) Calculate the profits for the monopolist. (c) Calculate the deadweight loss due to a monopoly. Illustrate this In a well labelled diagram.
Suppose that a monopolist's inverse demand curve can be expressed as: P= 10,000 +100Q - 10Q2...
Suppose that a monopolist's inverse demand curve can be expressed as: P= 10,000 +100Q - 10Q2 The monopolist's total cost curve is TC= 5,000Q a. Use Calculus to determine the monopolist's marginal revenue curve b. Use calcuus to determine the monopolist's marginal cost curve c. What is monopolist's profit-maximizing level of output? d. What price should the monopolist charge to maximize its profit? e. What is the profit that the monopolist makes?
1. Suppose a monopolist faces an inverse demand function of P = 150 ? 2Q. The...
1. Suppose a monopolist faces an inverse demand function of P = 150 ? 2Q. The firm’s cost functions is 30Q. (a) What is the firm’s marginal cost? Average cost? How about the firm’s marginal revenue? (b) What would the firm charge if they were a single price monopolist? (c) What is the consumer surplus, producer surplus, and dead weight loss. (d) Suppose the monopolist is able to perfectly price descriminate, what are the consumer surplus, producer surplus, and dead...
Consider a monopolist facing a market demand given by:                                  
Consider a monopolist facing a market demand given by:                                        P = 100 – 2Q Where P is the price and Q is quantity. The monopolist produces the good according to the cost function c(Q) = Q2 + 10. Determine the profit-maximizing quantity and price the monopolist will offer in the market Calculate the profits for the monopolist Calculate the deadweight loss due to a monopoly. Illustrate this in a well labeled diagram.
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    a. What is the profit maximizing level of output? b. What is the profit maximizing price? c. How much profit does the monopolist earn?
1. Consider a market with inverse demand P (Q) = 100 Q. A monopolist with linear...
1. Consider a market with inverse demand P (Q) = 100 Q. A monopolist with linear cost C(Q) = 20Q serves this market. (a) Find the monopolistís optimal price and quantity. (b) Find the price, quantity, proÖt, consumer surplus, and social welfare under perfect competition. (c) Find the optimal proÖt, consumer surplus, social welfare and the deadweight loss for monopoly. (d) What is the % loss in social welfare as we move from perfect competition to monopoly.
A monopolist has a cost function given by C(Q)=Q2 and faces the demand curve p=120-q a....
A monopolist has a cost function given by C(Q)=Q2 and faces the demand curve p=120-q a. what is the profit maximizing monopolist output and price b. what is the consumer surplus ? Monopoly profit? c. now suppose the monopolist has to follow the narginal cost pricing policy in other word she has to charge competitive prices what is her output and price?
Consider a monopolist facing a market demand given by p=100-2q Where p is the price and...
Consider a monopolist facing a market demand given by p=100-2q Where p is the price and q is the quantity, the monopolist produces good according to the cost function c(q)=q^2 +10 A determine the profit-maximizing quantity and the price the monopolist will offer in the market B calculate the profits for the monopolist C calculate the deadweight loss due to a monopoly. Illustrate this in a well-labelled diagram.
3. Suppose a monopolistically competitive firm’s demand is given by P = 4,000 – 2Q And...
3. Suppose a monopolistically competitive firm’s demand is given by P = 4,000 – 2Q And its cost function is given by TC = 5 + 40Q a. Find the profit maximizing quantity, price, and total profit level. b. If the firm is regulated to charge Price = Marginal Cost, calculate how much profit it will make.