4.Assume that a monopolist sells a product with the costfunction C = F + 20Q, where C is totał cost, F is a%3Dfixed cost, and Q is the level of output. The inversedemand function is P60 - Q, where P is the price in%3Dthe market. (i) How much profit does the firm earnwhen it charges the price that maximizes profit ?(ii) At what price will the firm earn zero economicprofits ?

In economics, an inverse demand function is the inverse function of a demand function. The inverse…

4. Assume that a monopolist sells a product with the cost function C = F + 20Q, where C is totał cost, F is a fixed cost, and Q is the level of output. The inverse demand function is P = 60 - Q, where P is the price in the market. (i) How much profit does the firm earn when it charges the price that maximizes profit ? (ii) At what price will the firm earn zero economic profits ?

4. Assume that a monopolist sells a product with the cost function C = F + 20Q, where C is totał cost, F is a fixed cost, and Q is the level of output. The inverse demand function is P = 60 - Q, where P is the price in the market. (i) How much profit does the firm earn when it charges the price that maximizes profit ? (ii) At what price will the firm earn zero economic profits ?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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4) A monopolist faces a market inverse demand function: P = 250 – 5Q and marginal cost function: ATC = MC = 10. Answer the following. If the monopolist employs a single price strategy, what is the optimal quantity produced and price charged. What is the market up and contribution margin from the strategy in part a if Ed = -1.0833. If other firms trying to enter this market had slightly higher cost structures, what would be a good price & quantity mix to limit entry of competition and why (no math needed). If the monopolist could create a bundled good instead of the strategy in part a, what price would it charge and how many units would be sold in the bundle. What are the profits from part a & part d? Which pricing strategy is preferred. EC: Briefly explain why a firm that offers a buy 2 get the 3rd free deal, does not just offer that same product at a 33.33% discount of the normal stated price. Need help with number 2.
6. A monopolist firm has two long-run choices: producing with short-run cost function C(q) = 30 + 5q, or exiting the market. If the inverse demand function of the market is p(g) = 15 – q, will the monopolist shut down in the short run? Will it exit the market in the long run? A. Shut down in the short run; exit in the long run B. Shut down in the short run; not exit in the long run C. Not shut down in the short run; exit in the long run D. Not shut down in the short run; not exit in the long run
B) The table below shows the information on quantity, price and cost of a monopolist. Assume that the fixed cost is $20, Quantity Price Total Variable Cost 10 $9 $20 20 8 $60 30 $7 $120 40 S6 $200 50 $5 $300 60 $4 $420 Determine the optimal output of the firm and compute the profit or loss of the firm at the optimal output. At what price will the monopolist exit from the industry?
1
8. Suppose a multiproduct monopolist faces the following demand functions: P₁ = 55-Y₁-Y₂ P₂ = 70-Y₁-2y₂ Let the cost function be given by: C(Y₁Y₂) = y +Y₁Y₂ + y² Derive the profit maximizing prices and quantities. 2
urgent
J 7 The quantity demanded, Q, of a monopolist’s product is a function of price, P, as given by the equation Q = 50 – P. If currently P = 40 and Q = 10, what is the marginal revenue (MR) associated with adding one more unit of output? a. –$29 b. –$31 c. $31 d. $1 e. $29
Pls solve sub questions 1, 2 and 3 only
2. Think about a monopolist, the market (inverse) demand function is: P = 30-2Q, his cost function is: C(Q) = 5+ Q?, a. What is the monopolist's optimal quantity and price? b. What is the monopolist's highest profit? %3D
2. Given the demand curve of the monopolist Q = 60 - 2P and the cost function of the monopolist TC = 50-4Q+ 0.5 Q^{2}, Then find: A. The inverse demand function, average revenue, the marginal revenue functions, marginal cost function? B. Find the level of output and price that maximizes the monopolist profit? C. The level of profit at equilibrium. D. Show graphically profit maximization level of output?
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.a. Given the above information, what is this monopolists profit maximizing price and output if it charges a single price?b. Given the above information, calculate this single price monopolists profit.c. At the profit maximizing quantity, what is this monopolists average total cost of production (ATC)?
Answer it correctly please...