Question

You are the manager of a monopolistically competitive firm. The
demand curve you face is P = 100 – 3Q. Your total cost function is
C(Q) = 50 + 7Q^{2}. Hence, we know that MR = 100 – 6Q, and
that MC = 14Q.

- What is the fixed cost?
- What level of output should you choose to maximize profit?
- What price should you charge?
- What is profit?
- What will happen in your market (your firm, other firms, etc.) in the long run? Explain.

Answer #1

You are the manager of a monopolistically competitive firm. The
present demand curve you face is P = 100 – 4Q. Your cost function
is C(Q) = 50 + 8.5Q2.
What level of output should you choose to maximize
profits?
What price should you charge?
What will happen in your market in the long run? Explain.

You are a manager of a monopolistically competitive firm, and
your demand and cost functions are given by q=20-p and
c(q)=20+q+q2.
Determine optimum price and optimum output?
Is this firm making the positive profit?
What will happen in the long run?

You are the manager of a monopolistically competitive firm and
your demand and cost functions are given by: P = 10 - 0.5Q and C =
104 - 14Q + Q2
a. Determine the profit maximizing price and quantity.
b. What the firm's profits or losses, given demand and cost
functions?
c. What long-run adjustments should you expect? Explain.
d. What is the equilibrium price in the long-run? Is the firm
realizing economic profits or incurring any losses?

You are the manager of a monopolistically competitive firm, and
your demand and cost functions are given by Q = 18-3P and C(Q) =
120-12Q+3Q^2.
Find the inverse demand function. Determine the profit
maximizing price and level of production. Calculate your firm's
maximum profits.

You are the manager of a monopolistically competitive firm and
your demand and cost functions are Q = 36 – 4P and C(Q) = 4 + 4Q +
4Q2.
Determine the profit maximizing price and level of
production
Calculate your firm’s maximum profits
What long-run adjustments should you expect? Explain.

You are the manager of a monopolistically competitive firm, and
your demand and cost functions are given by Q = 36 – 4P and C(Q) =
4 + 4Q + Q2.
Determine the profit-maximizing price and level of
production.
Instruction: Price should be rounded to the
nearest penny (two decimal places).
Price: $
Quantity:

You are the manager of a monopolistically competitive firm, and
your demand and cost functions are given by Q = 36 –
4P and C(Q) = 4 + 4Q +
Q2.
a. Find the inverse demand function for your firm’s product.
P = - Q
b. Determine the profit-maximizing price and level of
production.
Instruction: Price should be rounded to the
nearest penny (two decimal places).
Price: $
Quantity:
c. Calculate your firm’s maximum profits.
Instruction: Your response should appear...

You are the manager and selling your product in a perfectly
competitive firm market. Your firm and other firms sell the product
at a price of RM 90. Your cost function is C(Q) = 50 + 10Q + 2
Q2.
What level of output should you choose to maximize
profits?
What are your firm’s short run profits?
What will happen in your market in the long run? Explain.

You are the manager of a monopolistically competitive firm, and
your demand and cost functions are given by Q = 100 - 1/3P and TC =
1,500 + 2Q2 a. Calculate the profit-maximizing output. Solve using
2 methods. (6pts) b. Calculate P, AC, AVC, AFC at that output
level. ©(6pts) c. Explain how your answers in part (b) would let
you decide which case it is (explain in detail). Draw the case.
©(8pts)

The demand curve facing a firm will be more elastic,
a.
the fewer the number of competing firms
b.
the more differentiated the product
c.
the more substitutes there are for its product
d.
the greater the firm's ability to control price
Because of easy entry, monopolistically competitive firms
will
a. produce at the
lowest ATC.
b. charge a price
equal to MC.
c. earn an economic
profit equal to zero in the long run.
d. ...

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