Question

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

4) If a​ monopoly's inverse demand curve is

p = 27 - 2Q

and its cost function is

C = 75 + 2Q + 0.5Q²

What​ Q* maximizes the​ monopoly's profit​ (or minimizes its​ loss)? At​ Q*, what is the price and​ profit? Should the monopoly operate or shut​ down?

5) A​ monopoly's cost function​ (C) is

C = 0.2Q³ - 11.0Q² + 380Q + 50

where Q is output. Demand is

p = 620 - 2Q

Determine the profit-maximizing price and output for the monopolist.

Answer 1