Question

Barbara is a producer in a monopoly industry. Her demand curve, total revenue curve, marginal revenue...

Barbara is a producer in a monopoly industry. Her demand curve, total revenue curve, marginal revenue curve, and total cost curve are given as follows Q = 160 – 4P TR – 40Q – 0.25Q² MR = 40 – 0.5Q TC = 4Q MC = 4

Answer the following three questions: (You don't need to show your work, just type your answer as a number) a) What is the optimum output for Barbara? b) What is the market price? c) How much profit (or loss) will she make at the optimum output level?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider a Monopoly. Suppose the Demand function for the industry is Q = 440 − 4P....
Consider a Monopoly. Suppose the Demand function for the industry is Q = 440 − 4P. The total cost (TC) function for the firm is TC = 2.25Q^2 + 1,600. The marginal revenue (MR) function is then MR = 110 – 0.5Q. If the marginal cost (MC) function for the firm is MC = 4.5Q, what is the price the Monopoly will charge? Group of answer choices $4.50 $104.5 $110 $440
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?
· Question 4 Assuming a down-sloping demand curve and positive marginal cost, total revenue (TR) maximization...
· Question 4 Assuming a down-sloping demand curve and positive marginal cost, total revenue (TR) maximization requires: TR = 0 ATC = 0 MR = 0 Aπ = 0 · Question 5 Assuming a down-sloping demand curve and positive marginal cost, the output at the maximum total profit (Tπ): Is less than that at the maximum total revenue Is greater than that at the maximum total revenue Can be greater or less than that at the maximum total revenue Occurs...
You are a producer in a constant-cost perfectly competitive industry. Your long-run total, marginal, and average...
You are a producer in a constant-cost perfectly competitive industry. Your long-run total, marginal, and average costs are given by TC = 2Q² + 128, MC = 4Q, and ATC = 2Q+ (128/Q). What is the long-run equilibrium price?
economic of health and medical care In a MS Word document, define total revenue (TR), marginal...
economic of health and medical care In a MS Word document, define total revenue (TR), marginal revenue (MR), and the profit-maximizing rule for a single investor-owned firm. Then calculate MR, MC, and ATC for Table 3.1. Next, give the profit-maximizing level of output (Q). Now, assume the firm is a tax-exempt agency. One possibility is that tax-exempt agencies maximize output. Define the output-maximization rule and then give the output-maximizing level of output (Q) given Table 3.1. What happens to the...
The following equations describe the monopolist’s demand, marginal revenue, total cost and marginal cost: Demand: Qd...
The following equations describe the monopolist’s demand, marginal revenue, total cost and marginal cost: Demand: Qd = 12 – 0.25P | Marginal Revenue: MR = 48 – 8Q | Total Cost: TC = 2Q^2 | Marginal Cost: MC = 4Q Where Q is quantity and P is the price measured in dollars. a) What is the profit maximizing monopoly’s quantity and price? b) At that point, calculate the price elasticity of demand. What does the value imply? c) Does this...
Given the following information for a monopolistic competitor: Demand: P = 68 – 7(Q) Marginal revenue:...
Given the following information for a monopolistic competitor: Demand: P = 68 – 7(Q) Marginal revenue: MR = 68 – 14(Q) Marginal cost: MC = 2(Q) + 8 Average total cost at equilibrium is 22 1. At what output (Q) will this firm maximize profit?     2. At what price (P) will this firm maximize profit?     3. What is the total revenue (TR) earned at this output level?    4. What is the total cost (TC) accrued at this output?     5. What...
a) Assume the firm operates in the monopoly market in the long run with the demand...
a) Assume the firm operates in the monopoly market in the long run with the demand function P = 100-Q and TC = 640 + 20Q with TC showing the total cost of production, Q and P respectively of output quantity and price. Using the information above, publish i) Total revenue function (TR) ii) Marginal revenue (MR) iii) Marginal cost function (MC) iv) Determine the level of price and quantity of production that maximizes profit v) Determine the amount of...
2. The market for air conditioners has: Total Cost: TC = 20 + 10Q +(3/4)Q2 Marginal...
2. The market for air conditioners has: Total Cost: TC = 20 + 10Q +(3/4)Q2 Marginal Cost: MC = 10 + (3/2)Q Marginal Revenue: MR = 1,010 – 0.5Q Demand: Q = 4,040 – 4P 2a. If a monopoly controls the market, calculate the equilibrium price and quantity of air conditioners. 2b. Calculate the monopoly profits from part a. 2c. If the government imposed a tax of $80 per air conditioner that the monopoly sells, calculate the equilibrium new price...
(a) Suppose the total revenue (TR) and total cost (TC) curves of the perfectly competitive firm...
(a) Suppose the total revenue (TR) and total cost (TC) curves of the perfectly competitive firm are given by the following set of equations: TR = 100Q and TC = Q2 + 4Q + 5, where Q is the output. Derive the firm’s profit maximizing output and calculate the total and average profit earned by the firm at this level of output. (b) How do you know that the equations above could not be referring to a monopoly?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT