Question

1. Suppose a monopolist faces the demand for its good or service
equal to Q = 130 - P. The firm's total cost TC = Q^{2} +
10Q + 100 and its marginal cost MC = 2Q + 10. The firm's profit
maximizing output is

2. Suppose a monopolist faces the demand for its good or service
equal to Q = 130 - P. The firm's total cost TC = Q^{2} +
10Q + 100 and its marginal cost MC = 2Q + 10. The firm's profit
maximizing price is

3. Suppose a monopolist faces the demand for its good or service
equal to Q = 130 - P. The firm's total cost TC = Q^{2} +
10Q + 100 and its marginal cost MC = 2Q + 10. The firm's profit
is

4. Suppose a monopolist faces the demand for its good or service
equal to Q = 130 - P. The firm's total cost TC = Q^{2} +
10Q + 100 and its marginal cost MC = 2Q + 10. If this market were
perfectly competitive, the market output is

5. Suppose a monopolist faces the demand for its good or service
equal to Q = 130 - P. The firm's total cost TC = Q^{2} +
10Q + 100 and its marginal cost MC = 2Q + 10. If this market were
perfectly competitive, the market price is

Answer #1

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 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?

1. Consider a monopolist where the market demand curve
for the produce is given by P = 520 - 2Q. This monopolist has
marginal costs that can be expressed as MC = 100 + 2Q and total
costs that can be expressed as TC = 100Q + Q2 + 50. (Does not need
to be done. Only here for reference)
2. Suppose this monopolist from Problem #1 is regulated
(i.e. forced to behave like a perfect competition firm) and the...

A monopolist faces a demand curve given by P=40-Q, while its
marginal cost is given by MC=4+Q. Its profit maximizing output
is
a. 8 b. 9
c. 10 d.
11 e. 12
why is the answer (e)?

Consider a pure monopolist who faces demand Q= 205 - 2P and has
a cost function C(Q) = 2Q.
Solve for the information below, assuming that the monopolist is
maximizing profits.
The monopolist is able to produce at a constant marginal cost of
_________
The monopolist's profit-maximizing level of output is Q* =
______
The monopolist's profit-maximizing price is P* = _________

Suppose a monopolist has TC = 100 + 10Q + 2Q2, and the demand
curve it faces is p = 90 - 2Q. What will be the price, quantity,
and profit for this firm?

Example 1:
Suppose a monopolist faces an inverse demand function as p = 94
– 2q. The firm’s total cost function is 1.5q2 + 45q +
100. The firm’s marginal revenue and cost functions are MR(q) = 90
– 4q and MC(q) = 3q + 45.
How many widgets must the firm sell so as to maximize its
profits?
At what price should the firm sell so as to maximize its
profits?
What will be the firm’s total profits?

1. Suppose a firm faces the following demand for its output q: q
= 100 – 10p, where p represents the price it receives per unit
sold. Assume this firm marginal cost is MC = 4. The level of output
at which this firm maximizes its profit is______ . (NOTE: write
your answer in number format, with 2 decimal places of precision
level; do not write your answer as a fraction. Add a leading zero
when needed.) The price charged...

Part A
A demand curve is P = 10- Q. So its MR is
A)5-2Q
B)10- 4Q
C)10 - Q
D)10 -2Q
Part B
A non- competitive firm's demand curve is P = 10- 2Q. So its MR
is
A)5-2Q
B)10- 4Q
C)10 - Q
D)5 - Q
Part C
"If a firm with pricing power in the market faces a demand curve
of P = 1800-2Q and marginal costs of MC = 200, how much is the
equilibrium (profit...

Use the following information to answer questions #1 – 3: A
monopolist has the following demand curve: P = 100 – Q and total
cost curve: TC = 16 + Q2 and marginal cost curve: MC = 2Q.
1. Find the profit maximizing quantity. a. Q = 20 b. Q = 33.33
c. Q = 25 d. Q = 4 e. Q = 30
2. Find the profit maximizing price. a. $96 b. $80 c. $75 d.
$66.67 e. $70...

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