Question

1. A monopoly firm faces a demand curve given by P=70-Q and has a cost curve given by TC=0.7Q^2

a) Specify its output*, price*, and profits*.

b) Suppose a specific tax of $16 per unit produced is imposed upon the firm; how does this affect the firm's *output, price, and profits.

c) If there is a fixed franchise tax of $160 implemented on the firm, how does this affect the output, price, and profits.

d) If there is a corporate profits tax of 50% imposed on the firm, how does this change the firm's optimal output, price, and profits.

step by step solutions would be very helpful as this will assist in reviewing for an upcoming exam. thanks

Answer #1

A monopoly firm faces a demand curve given by the
following equation: P = $500 - 10Q, where Q equals quantity sold
per day. It's marginal cost curve is MC = $100 per day. Assume that
the firm faces no fixed cost. Provide an explanation of the
results.
How much will the firm produce?
How much will it charge?
Can you determine its profit per day?
Suppose a tax of $1000 per day is imposed on the firm? How will...

A monopoly firm faces a demand curve given by the following
equation - P = $500 - 10Q, where Q equals quantity per day. Its
marginal cost curve is MC = $100 per day. Assume that the firm
faces no fixed cost. Please answer each question
mathematically.
a). Now suppose a tax of $100 per unit is imposed. How will this
affect the firms price?
b). How would a $100 per unit tax affect the firms profit
maximizing output per...

A monopoly firm faces a demand curve given by the following
equation: P = $500 − 10Q, where Q equals quantity sold per day. Its
marginal cost curve is MC = $100 per day. Assume that the firm
faces no fixed cost. You may wish to arrive at the answers
mathematically, or by using a graph (the graph is not required to
be presented), either way, please provide a brief description of
how you arrived at your results. Excel please!!!...

Urgently required ( only d,e ,f ,g,h,i)
A monopoly firm faces a demand curve given by the following
equation: P = $500 − 10Q, where Q equals quantity sold per day. Its
marginal cost curve is MC = $100 per day. Assume that the firm
faces no fixed cost. You may wish to arrive at the answers
mathematically, or by using a graph (the graph is not required to
be presented), either way, please provide a brief description of
how...

a) A monopoly faces a demand curve given by P = 2,500 - 0.5Q and
has marginal cost constant at $200. What is the profit-maximizing
output level?
b) A monopoly faces a demand curve given by P = 2,500 - 0.5Q and
has marginal cost constant at $100. What is the profit-maximizing
price?

a) A monopoly faces a demand curve given by P = 2,500 - 0.5Q and
has marginal cost constant at $900. What is the profit-maximizing
output level?
b) A monopoly faces a demand curve given by P = 2,500 - 0.5Q and
has marginal cost constant at $1,000. What is the profit-maximizing
price?

A monopoly that faces a demand curve given by Q = 1-P and has a
constant marginal cost as 0.2.
1.
In this situation, the deadweight loss from monopoly is:
a.
0.12.
b.
0.08.
c.
0.40.
d.
0.16.
2. In this situation the monopoly's profit maximizing output
level is:
a.
0.7.
b.
0.2.
c.
0.4.
d.
0.5.

assume that a monopoly firm has a linear demand curve and a
constant marginal cost curve. Graph this firm's optional output
choice before and after a per-unit excise tax is placed on the
output. Does the equilibrium price rise by as much as tax?

1) The inverse demand curve a monopoly faces
is
p=110−2Q.
The firm's cost curve is
C(Q)=30+6Q.
What is the profit-maximizing solution?
2) The inverse demand curve a monopoly faces
is
p=10Q-1/2
The firm's cost curve is
C(Q)=5Q.
What is the profit-maximizing solution?
3) Suppose that the inverse demand function for
a monopolist's product is
p = 7 - Q/20
Its cost function is
C = 8 + 14Q - 4Q2 + 2Q3/3
Marginal revenue equals marginal cost when output
equals...

A monopolist faces an inverse demand curve P(Q)= 115-4Q and
cost curve of C(Q)=Q2-5Q+100.
Calculate industry output, price, consumer surplus, industry
profits, and producer surplus if this firm operated as a
competitive firm and sets price equal to marginal cost.
Calculate the dead weight loss sue to monopoly.

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 8 minutes ago

asked 25 minutes ago

asked 35 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago