Question

A monopolist faces an inverse demand of p(y)=300-3y, and its total cost of production is c(y)=30y, where y is the output level. Calculate the x-intercept of the monopolist's marginal revenue curve.

Answer #2

Answer :

p(y) = 300 - 3y

This is the inverse demand curve faced by the monopolist

Revenue curve = p(y) * y = 300y - 3y^2

Marginal revenue we get by differentiating the revenue curve with respect to y

Thus : Marginal revenue = 300 - 6y

The MR curve is thus : MR = 300 - 6y

We get the x-intercept of this curve by making the left hand side to be zero.

So : 0 = 300 - 6y

6y = 300

y = 300/6 = 50

Answer : x-intercept of the monopolist's marginal revenue curve is 50

answered by: anonymous

A monopolist faces an inverse demand of p(y)=100-5y, and its
total cost of production is c(y)=20y, where y is the output level.
The monopolist maximizes its profits at output level equal to 8.
Calculate the deadweight loss of this monopoly.

A monopolist faces the inverse demand function p = 300 – Q.
Their cost function is c (Q) = 25 + 50Q. Calculate the profit
maximizing price output combination

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 the inverse demand for its output:
p = 30 – Q
The monopolist faces a cost curve: C(Q) = 5Q. The government is
seeking ways to collect
tax revenue from the monopolist by imposing an ad valorem tax of
20% on the
monopolist.
1)Draw an approximate graph to depict the before-tax and
after-tax price – quantity
combination (in one graph).

A monopolist faces the inverse demand for its output:
p = 30 – Q
The monopolist faces a cost curve: C(Q) = 5Q. The government is
seeking ways to collect
tax revenue from the monopolist by imposing an ad valorem tax of
20% on the
monopolist.
a. What price and quantity does the monopolist choose (post-tax)
and how much
revenue does the government generate from the tax? Does the
monopolist earn any
profits in this case? If so, how much...

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?

A monopolist faces the inverse demand curve p = 120 - 6q. At
what level of output is his total revenue maximized?
20
5
20
15
10

A monopolist faces the inverse demand for its output: p = 30 – Q
The monopolist faces a cost curve: C(Q) = 5Q. The government is
seeking ways to collect tax revenue from the monopolist by imposing
an ad valorem tax of 20% on the monopolist.
a. What price and quantity does the monopolist choose (post-tax)
and how much revenue does the government generate from the tax?
Does the monopolist earn any profits in this case? If so, how much...

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.

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?

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 10 minutes ago

asked 14 minutes ago

asked 23 minutes ago

asked 30 minutes ago

asked 31 minutes ago

asked 38 minutes ago

asked 38 minutes ago

asked 57 minutes ago

asked 59 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago