ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- A monopolist's costs are given by: C(Q) = 4Q² + 10Q + 100 and it faces the demand function: P = 50 - Qarrow_forwardA monopolist has a cost function given by C(y)=y2 and faces a demand curve given by P(y) = 120-y. If you impose a lump sum tax of £100 on this monopolist, what will be the impact on output? Explain your calculations and the intuition behind your result.arrow_forwardDemand Q(P)= 16,137-489P and Cost Function C(Q)= 11,296+17Q Calculate profit maximizing quantity under monopolyarrow_forward
- The demand function for a monopolist is given by: P1 = 1,250 – 3.5Q and the cost function is given by C(Q) = 1,200 +1.5Q + 0.8Q2. This firm, Otsuka, is a pharmaceutical holding a patent on a depression treatment, Rexulti. However, the patent expired, and a generic treatment is offered in the market. Now, the new market price is P=$400. Based on this information, what are the optimal profits with a generic treatment?arrow_forwardIf, in a monopoly market, the demand for a product is p = 195 − 0.10x and the revenue function is R = px, where x is the number of units sold, what price will maximize revenue? (Round your answer to the nearest cent.)arrow_forwardIn a monopoly situation, the equation for the demand for a certain commodity in dollars per unit is (P) = 12-0.5x. If the total cost for the production and sale of x units is given by C (x) = - x ^ 3/100 + 3 ^ 2/10, calculate the unit price if profit is to be maximized.arrow_forward
- Jackelina's company is a monopoly that faces demand Qd = a - bp, where a and b are positive numbers. The monopolist's marginal revenue function is: MR = a-2bP MR = a/Q - b = MR a/b - 2Q/b MR = a -2bQarrow_forwardConsider a monopoly with inverse demand given by P(q)=a-bq and cost function c(q)=cq, where a>c>0 and b>0 are parameters, and q is the quantity supplied by the monopoly. Find the monopoly’s profit-maximizing price and output, and calculate the output and the welfare loss compared to the competitive outcome.arrow_forwardConsider a monopoly that faces the demand curve P = 20 − Q, and has the marginal cost curve MC = 2. a) Use the demand curve to find the equation of the marginal revenue curve. b) Find the profit-maximizing price and quantity for this monopoly if the monopoly uses uniform pricing. What is the producer surplus? c) Now, suppose the monopoly wants to increase profits using block pricing. The total cost the monopoly incurs is T C = 2Q. Find the optimal quantities, Q1 and Q2, and their corresponding optimal prices, P1 and P2 that maximize profits using a two-block pricing scheme. What is the new producer surplus? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forward
- Suppose a monopoly firm with a constant marginal cost 10 faces an inverse linear demand function p= 50 - Q. What would be the profit-maximizing price and quantity if its marginal cost doubles?arrow_forwardSuppose the inverse demand for a monopolist's product is given by P(Q) = 70 – .50 The monopolist can produce output in two plants. The marginal cost of producing in plant 1 is MC, = 3Q, and the marginal cost of producing in plant 2 is MC, = Q2. How much out- put should be produced in each plant to maximize profits, and what price should be charged for the product?arrow_forwardA different industry has a Demand curve given by Q = 100 p − 1 2 Assume that a monopolist supplies this industry. The cost function of this monopolist is c(Q)=2*Q. What is the price the monopolist charges? What is the quantity the monopolist sells?arrow_forward
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