Question

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?

Answer #2

a) We are given P = 2,500 - 0.5Q, this is the Average revenue, we need to find the total revenue and marginal revenue:

Now profit maximizing output will be where MR = MC

b) We are given P = 2,500 - 0.5Q, this is the Average revenue, we need to find the total revenue and marginal revenue:

Now profit maximizing output will be where MR = MC

answered by: anonymous

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.

An oligopoly firm faces a kinked demand curve. One segment is
given by the equation P = 100 – Q, and the other segment is given
by P = 120 – 2Q. The firm has a constant marginal cost of $45.
a) What is the firm’s profit-maximizing level of output and
price?
b) What are the upper and lower limits which marginal cost may
vary without affecting either the profit-maximizing output or
price?

The inverse market demand curve facing a monopoly retailer of gold
jewelry is described by P=3000-0.5Q. The retailer buys jewelry at a
wholesale price, r, set by the monopolist manufacturer. Marginal
cost for the manufacturer is 500. The retailer has additional
marginal costs=100.
What is the profit-maximizing wholesale price for the
manufacturer?
What is the profit-maximizing retail price for the retailer?
What is the profit-maximizing quantity?
If the two firms merged, what would be the profit-maximizing retail
price and quantity?

a monopoly firm's demand curve is given by p=700-3q the firms
current price is 400 suppose the price elasticy of demand is
-1.5.
(a)calculate the firms marginal revenue at the current price
using the expression for marginal revenue that utilizes the price
elasticity of demand
(b) the firm sells 100 units of output a week if the marginal
cost is zero, is this firm profit maximizing? what should be this
firms profit maximizing output and price?

A monopoly faces the following inverse demand function:
p(q)=100-2q, the marginal cost is $10 per unit.
What is the profit maximizing level of output, q*
What is the profit maximizing price
what is the socially optimal price
What is the socially optimal level of output?
What is the deadweight loss due to monopoly's profit maximizing
price?

A
monopoly has an inverse demand curve given by: p=28-Q
And a constant marginal cost of $4. Calculate deadweight loss
if the monopoly charges the profit-maximizing price.
Round the number to two decimal places.

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 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?

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?

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