Given the following information for a monopoly firm: Demand: P = 80 - 5(Q) Marginal revenue: MR = 80 - 10(Q) Marginal cost: MC = 2(Q) + 8 Average total cost at equilibrium is 30 1. At what output (Q) will this firm maximize profit? Number 2. At what price (P) will this firm maximize profit Number 3. What is the total revenue (TR) earned at this output level Number

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter9: Monopoly
Section: Chapter Questions
Problem 6SQ
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Given the following information for a monopoly firm:
Demand: P = 80 - 5(Q)
Marginal revenue: MR = 80 - 10(Q)
Marginal cost: MC = 2(Q) + 8
Average total cost at equilibrium is 30
1. At what output (Q) will this firm maximize profit? Number
2. At what price (P) will this firm maximize profit Number
3. What is the total revenue (TR) earned at this output level Number
4. What is the total cost (TC) accrued at this output Number
Number
5. What profit is earned
Assume this firm is to be regulated. Answer the following questions:
6. Under the Marginal Cost Pricing,what is the optimal quantity Number
7. Under the Marginal Cost Pricing,what is the optimal price Number
Transcribed Image Text:Given the following information for a monopoly firm: Demand: P = 80 - 5(Q) Marginal revenue: MR = 80 - 10(Q) Marginal cost: MC = 2(Q) + 8 Average total cost at equilibrium is 30 1. At what output (Q) will this firm maximize profit? Number 2. At what price (P) will this firm maximize profit Number 3. What is the total revenue (TR) earned at this output level Number 4. What is the total cost (TC) accrued at this output Number Number 5. What profit is earned Assume this firm is to be regulated. Answer the following questions: 6. Under the Marginal Cost Pricing,what is the optimal quantity Number 7. Under the Marginal Cost Pricing,what is the optimal price Number
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