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- 2. The Ice Cream Lovers Society decided to open up an ice cream stand during the summermonths. They calculated that it would cost them $0.80 to make a scoop of ice cream and$350 a month to operate the stand. They hired a research team who determined that theprice-demand function given in dollars isp x x ( ) = −8 0.02wherexis the number ofscoops sold.a. Find the revenue functionR x( )b. Find the value ofxthat produces the maximum revenue algebraically.c. Find the maximum revenue algebraically.d. Find the price per scoop of ice cream that produces the maximum revenuealgebraically.e. Find the cost functionC x( )that describes the monthly costs of operating the icecream stand.f. Find the break-even points to the nearest scoop algebraically usingR x( )andC x( ) .g. Find the profit functionP x( ).Determine the profit maximization point of a firm in a graph showing the dynamics of the Production and Cost Function. Supoose you are given this data of a monopolist. The price of the product is 35 pesos. 1. Compute for the- total cost, Average variable cost, marginal cost, total revenue, marginal revenue.2. Graph the schedule and answer the following question. - did the firm able to maximize its profit? If yes identify at what level (Quantity/output) or highlight the profit maximization point in the graph. If no, cite the reason why the firm was not able to maximize profit. Elaborate you explanation through you analysis on the Dynamics of the cost and output.1. A manufacturer estimates that D(p)=3000e0.05p units of a particular good will be sold at market price of p cedis per unit. Determine the market price that will result in marginal revenue of zero. 2. A manufacturer estimates that q = 800/30 – p units of a commodity are demanded when cedis per unit are charged. a. Express the price elasticity of demand as function of p . b. Calculate the price elasticity of demand when p=10. Interpret the result. c. Find the price at which the price elasticity of demand is unit-elastic. 3. An auto maker estimates that when q units of its saloon cars are sold in a day, its profit in millions of cedis is modelled as P(q) =100+25In 20 Find the 2 number of cars that should be produced and sold to maximise profit.
- E3 Let’s assume a monopolist has the following inverse demand curve:p = 248 −3qand the following cost curve:T C = 8q + q^2(a) Calculate the marginal revenue and marginal cost for this firm.(b) Let’s assume the firm chose to operate in a perfectly competitive market. If that was true,what is the equilibrium price and quantity?(c) Graph the demand curve, marginal revenue, and marginal cost for the perfectly competitivemarket. Show the optimal quantity and price on the graph.(d) Calculate the consumer surplus, producer surplus, and deadweight loss in this market.(e) Now, let’s assume the firm chose to operate as a monopolist. If that was true, what is theequilibrium price and quantity?(f) Graph the demand curve, marginal revenue, and marginal cost for the monopolist market.Show the optimal quantity and price on the graph.(g) Calculate the consumer surplus, producer surplus, and deadweight loss in this market.2 A monopoly sells its goods in the United States, where the elasticity of demand is -2, and in Japan, where the elasticity of demand is -5. Its marginal cost is $10. At what price does the monopoly sell its goods in each country if resale is impossible?in a short run monopolist will shut down when_______ and a natural monoploy is most likely to occur in the market when_______? from the attached tabel: for the monopolist find the TR When the 3rd output is produced? from the attached graph: what would be the profit maximizing output for the monopolist firm?
- Economics only answer from "regulated price, p" to the end. thank you very much in advance. II A monopolist facos an inverse demand curve given byP 300-30 R han constant marginal cont of 30. What is the proft-maximizing price and quantity What is the mnonopolist's profits? (Aanume the monopolist han zero fxnd conts.) (You may wish to to display your results in a graph) Price = Quantity= Profit = What is the Consumors' Surplun (cs? CS- What in the Deadweight Loss? DWL Assume this is a regulated monopoly and that the regulator winhes to maximize CS without driving the monopolist out of buniness. What price coiling would the regulator choose? Regulated prioe, p'-, At p', recaloulate Consumers Surplus Recalculate profit: Profit' Recalculate DWL'- Who wins as a result of the new regulated price? (Circle one) Consumers Monopolist Both win Neither wins Who loses as a result of the new regulated price?MR MC ATC AVC Demand Suppose these curves are for a monopolist. A. Describe where on the graph to find the monopolist equilibrium. B. At the current price is the monopolist making a profit? Should the monopolist shut down?9. The demand equation of a monopolist is P = 156 – Q?P = 156 – Q? and marginal cost equation is: MC = 14 + 5Q then find the consumer's surplus. 10. If the investment equation is 7(t) = 5t2l(t) = 5t2 then what is the total capital after 5 years. What is the capital in between 3 to 8 year?
- 3. Consider a monopolist who faces the following demand: Demand: P= 100 – 10Q MC= 50+20 a) Find the price quantity combination that maximizes profit for the monopolist. b) Is the firm making positive, negative or zero profits? (100,100) Kareem chooses (60, 105) (500, 400) Saleem chooses Kareem chooses (50,420) 4. Calculate the SPNE/SPNES for the game stated above.Price Quant ity Total Cost 2.000 1.600 1,800 2. 1,800 1,600 2000 For the Monopolist find the TR when the 3rd output is produced. Selected Answer: 2.000 Question 5 Total Cost 1.600 1.800 2.000 Price Quantity 2.000 1,800 1,600 What would be the profit for the monopolist if he choose to produce 2 units of the good? Selected Answer: 1,600 Question 9 If TR= 2+3Q^2, then MR is:A monopolist is faced with the following cost and revenue curves:(picture) a.What is the maximum-profit price and output,total revenue, total cost and profit? b.If the monopolist were ordered to produce 300 units, what would be the market price and how much profit would now be made c.If the monopolist were faced with the same demand, but average costs were constant at £60 per unit, what output would maximise profit? What would be the price now?................................................................................................. (j) How much profit would now be made? ................................................................................... (k) Assume now that the monopolist decides not to maximise profits, but instead sets a price of £40. How much will now be sold? .................................................................................................................................................. (l) What is the marginal revenue at this…
