A firm in a monopolistically competitive market faces the following demand curve: Q(P)=2,223-57P Its total cost function is: TC(Q) = $ 15(Q) + $1208 Calculate the profit maximizing quantity
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A firm in a
Q(P)=2,223-57P
Its total cost function is:
TC(Q) = $ 15(Q) + $1208
Calculate the profit maximizing quantity
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- In the long run period, a small number of firms produces the differentiated product "X" in a monopolistic competition market. The total demand for this product "X" can be written as: Qp(p) = 1350 – 45p The total cost function is: 1 TC = q³ – 3q² + 40q 10 What is the number of firms in this market?In a monopolistically competitive industry, a firm has a short-run and long-run cost function C = 150 + 20Q + 5Q2 The demand function for the firm's product is Q = α – P. (C = cost, Q = quantity, P = price, α = parameter). (i) If α = 116 short, determine the quantity, the price and profit of the business. (ii) What is the firm's demand function at long term equilibrium? MAKE A GRAPHSuppose the inverse demand function for a monopolistically competitive firm’s product is given by P=100 − 2Q and the cost function is given by C(Q ) = 5 + 2Q Determine the profit-maximizing price and quantity and the maximum profits.
- Consider a monopolistically competitive firm that faces demand curve P=160-3Q and total cost curve TC=100+Q². If this firm is profit-maximizing, what is the value of the average total cost (ATC) evaluated at Q*? (note: I am not asking for total costs. It's the value you would mark on your graph when you plug Q* into the ATC curve).Complete the following table showing the demand for snow skiing lessons per day. Do this by filling in the values for (i), (ii), and (iii). Average Revenue (AR = TR/Q) Marginal Revenue (MR = ATR/AQ) Lessons Total Revenue Price (P) (TR =P× Q) $0 per Day (Q) $90 $86 82 86 86 $86 82 164 78 (i) 296 3 78 78 70 74 74 62 70 350 (ii) 54 6 66 396 66 46 7 62 434 62 38 8 58 464 58 (iii) (i) Total revenue for 3 lessons is $. (ii) Average revenue for 5 lessons is $. (iii) Marginal revenue for the 8th lesson is $.Suppose the inverse demand function for a monopolistically competitive firm's product is given by P = 100 – 20 and the cost function is given by CQ) = 5 + 2Q Determine the profit-maximizing price and quantity and the maximum profits.
- Widget Sales Jesaki Inc. is trying to enter the widget market. The research department established the following price-demand, cost, and revenue functions: p(x)=60-1.20x C(a) = 210 + 12x |R(x) = xp(x) = x(60 - 1.20x) Revenue function where x is in thousands of widgets and C(x) and R(x) are in thousands of dollars. The price p(z) is the price in dollars of one widget when the demand is a thousand widgets. All three functions have domain 1 ≤ ≤ 50. Use this information to answer questions 1-10 below. Price-demand function Cost functionAssume a firm engaging in selling its product and promotional activities in monopolistic competition face short-run demand and cost functions as Q = 20-0.5P and TC= 4Q2 -8Q+15, respectively. Having this information a) Determine the optimal level of output and price in the short run. b) Calculate the economic profit (loss) the firm will obtain (incur). c) Show the economic profit (loss) of the firm in a graphic representation.A new restaurant – Chang – has just opened in Austin. It is serving the upscale market, with truly outstanding pasta that is flown in overnight from Bologna, Italy. Chang offers a fixed-price menu with appetizer, three dishes of pasta, and a delicious tiramisu for dessert. The restaurant faces the following demand function: Q = 600 - 4P. where Q is the number of guests per day. The marginal cost is constant at $50 per customer (including expenses for ingredients and personnel). The restaurant is paying a rent of $2,000 per day. What is the proft mazimixing number of guests and what price should Chang charge to maximize profits?
- Suppose a company creates its own differentiated type of sneaker and is thus considered a monopolistically competitive firm. This firm has a constant marginal cost curve. For each unit of output that the monopolistically competitive firm produces, it costs an additional $50$50. The firm's marginal revenue curve is MR=80−6QMR=80−6Q, where Q is the quantity produced. The firm's perceived demand curve is P=80−3QP=80−3Q. What is the monopolistically competitive firm's profit-maximizing output and price? Write the exact answer. Do not round.Suppose 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 Find the inverse demand function for your firm’s product. Determine the profit-maximizing price and level of production. Calculate your firm’s maximum profits.Complete the following table showing the demand for snow skiing lessons per day. Do this by filling in the values for (i), (ii), and (ii). Average Revenue (AR = TR/Q) Marginal Revenue (MR = ATRIAQ) Lessons Total Revenue (TR =PxQ) Price (P) $70 per Day (Q) $65 55 45 1 65 65 60 55 50 45 $65 2 3 120 60 (i) 200 225 55 4 50 35 5 (ii) 40 25 6. 40 240 15 7 35 245 35 5 8 30 240 30 (ii) (i) Total revenue for 3 lessons is $ (ii) Average revenue for 5 lessons is S (iii) Marginal revenue for the 8th lesson is $
