Question

- A monopoly firm having following cost and revenue curves for the prices of 0,10,20,30,40,45,0

MC = 1 + 2Q

AC=10+ 6 / Q

Q = 100 - 2P

MR= 50-Q

Graph all the curves on the same axis and find the optimal level of output and prices. Calculate the profit or loss of the firm.

Answer #1

. A town has a monopoly supplier of potable water. The
monopolist faces the following demand, marginal revenue, and
marginal cost curves:
Demand: P = 70 – Q
Marginal Revenue: MR = 70 – 2Q
Marginal Cost: MC = 10 + Q
Graph these curves.
Assuming that the firm maximizes profit, what quantity does it
produce? What price does it charge? Show these results on your
graph.
The local government decides to impose a price ceiling that is
10 percent...

Suppose a monopoly firm has the following Cost and Demand
functions:
TC=Q2
P=20-Q
MC=2Q
MR=20-2Q
Carefully explain what the firm is doing and why.
Find the firm’s Profit maximizing Q
Find the firm’s Profit maximizing P.
Find the firm’s Profit.
2. Suppose because of an advertising campaign, which costs $150,
the monopoly’s demand curve is: P=32-Q so its MR= 32-2Q
Looking closely at the TC function and the demand curve,
explain the effects of the advertising campaign on the equations...

(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?

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?

Cost, revenue, and profit are in dollars and x is the number of
units. A firm knows that its marginal cost for a product is MC = 3x
+ 30, that its marginal revenue is MR = 70 − 5x, and that the cost
of production of 60 units is $7,380. (a) Find the optimal level of
production. units (b) Find the profit function. P(x) = (c) Find the
profit or loss at the optimal level. There is a of...

if the marginal cost of a firm is MC = 9q^2 + 2q +1 and the
marginal revenue MR = 60-q. Given that total cost is 3390 when q
-10
(a) Derive an expression for total cost
(b) Derive the expression for total revenue
(c) Using the results from (a) and (b) find the total profit
function

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?

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...

Assume the inverse demand curve a monopoly faces is p = 100 -
2Q, and MC is constant at 16.
Find the monopoly’s profit maximization output.
Find the monopoly’s profit maximization price.
Find the monopoly’s maximum profit.
Find the monopoly’s deadweight loss.
Please show work for parts c and d

2. You have been hired to do some consulting for Fishy Joe’s, a
profit-maximizing monopolistic competitor selling “popplers”. You
have estimated the firm’s demand, marginal revenue, and marginal
cost curves to be, respectively, P = 100 − 2Q, MR = 100 − 4Q, and
MC = 20 + Q, where quantity Q is measured in servings and prices
are measured in dollars per serving. Currently, the firm is
producing where
• Price = $50/serving
• Average Total Cost = $38/serving...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 4 minutes ago

asked 5 minutes ago

asked 10 minutes ago

asked 10 minutes ago

asked 13 minutes ago

asked 17 minutes ago

asked 17 minutes ago

asked 18 minutes ago

asked 24 minutes ago

asked 24 minutes ago

asked 38 minutes ago

asked 38 minutes ago