ssume quantities need not be integers. A monopolist incurs marginal cost equal to $2 per unit. This period, it must pay a $80 fixed cost, and faces demand P(Q)=12 – 0.5 x Q. What are its profits in this
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Assume quantities need not be integers. A monopolist incurs marginal cost equal to $2 per unit. This period, it must pay a $80 fixed cost, and faces demand P(Q)=12 – 0.5 x Q. What are its profits in this period?
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- Assume quantities need not be integers. A monopolist incurs marginal cost equal to MC=Q per unit and faces demand P(Q)=18 – 3 x Q. If there is no fixed cost for production, what is the total cost of production?Assume quantities need not be integers. A monopolist incurs marginal cost equals to MC=Q per unit and faces demand P(Q) = 19 - Q. If there is no fixed cost for production, what is the total cost of production?Acme is a monopolist for a good with inverse demand P = 4000 – 6Q, where P is the price in dollars and Q is the amount sold. Acme's variable costs are TVC(Q) = 4Q². With these functions, the marginal revenue is MR(Q) = 4000 – 12Q and marginal cost is MC(Q) = 8Q. a) If Acme has no fixed costs, what is its profit maximizing price? b) If Acme has non-sunk fixed costs of $700,000, is it worth operating or should they shut down?
- A monopolist has the following marginal revenue function MR = 1,600 - 20Q, and marginal cost function MC = 200 + 30Q and faces the following the demand curve p 1200-10Q. And the total cost function is TC= 200Q+15Q². Q refers to the number of units produced by the monopolist. Find the profit maximizing quantity (in number of units produced) for this monopolist. The result should be an integer number, no decimals (e.g. if the result is 3.65 write 4, if the result is 3.64, write 3). = Your Answer:The total cost of a monopolist is TC(Q)=5Q2+9Q+10. Her inverse demand function is P=146-3Q. You are told that her marginal revenue is 2*5Q+9 and and her marginal cost is146-2*3Q. You are also told that the firm will not shut down in the short run. Please find the profit of the monopolist.A monopolist faces the demand curve Q(P ) = 50 − P 2 . The firm can produce output with marginal costs MC(Q) = Q and no fixed costs. Hint for the following questions: if revenue is of the form R(Q) = (a − bQ)Q, then the derivative of revenue is a − 2bQ. (a) What is the profit maximizing price for the monopolist in this market? (b) What is the deadweight loss from monopoly in this market, compared to the efficient output that sets price equal to marginal cost? *Please fully explain out any math
- A monopolist has demand, marginal revenue, total cost, and marginal cost curves given by: Q demanded = 1000 – 2P MR = 500 – Q TC = 5,000 + 50Q MC = 50 Choose the response with the correct profit- maximizing output level and profit amount for this firm. Profit-max Q = 900; Profit-max P = $50; Profit = $95,000 Profit-max Q = 900; Profit-max P = $50; Profit = - $5,000 Profit-max Q = 450; Profit-max P = $275; Profit = $141,250 Profit-max Q = 450; Profit-max P = $275; Profit = $96,250A monopolist has a demand curve given by P = 90 - 2Q and a total cost curve given by TC = 72 + Q2. The associated marginal cost curve is MC = 2Q, %3D and the associated marginal revenue curve is MR = 90 – 4Q. What is the profit-maximizing quantity and price. How much economic profit does the monopolist earn? Suppose this monopolist could engage in an advertising campaign that would increase demand to P = 108 – 2Q (and MR = 108 – 4Q). What would be the maximum amount this company would be willing to pay for this advertising campaign?A natural monopolist has the total cost function C(q) = 600 + 10q, where q is its output. The inverse demand function for the monopolist’s product is p = 65 - q. Government regulations require this firm to produce a positive amount and to set price equal to average costs. To comply with these requirements (Select all that applies, there may be more than one answer) a. is impossible for this firm. b. the firm could produce 5 units. c. the firm could produce 15 units. d. the firm could produce 35 units. e. the firm could produce 40 units. f. the firm could charge a price of $70. g. the firm could charge a price of $50. h. the firm could charge a price of $30.
- Suppose 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?Currently a monopolist's profit maximizing output is 400 units per week and it sells output at price of $60 per unit. The total cost of the form are $10,000 per week. The firm is maximizing it's profit and it earns $40 in extra revenue from the sale of the last unit. Calculate the profit.A monopolist has discovered that the inverse demand function of a person with income Y for the monopolist’s product is P = 0.002Y-Q where P is the price, Y the income, and Q is the output. The monopolist can observe the incomes of its consumers and hence vary its price accordingly. The monopolist has a total cost function C(Q) = 100Q. A. Calculate the profit maximising price as a function of the consumer’s income Y carefully explaining all the steps in the derivation of the formula. B. A monopolist has a constant marginal cost of £2 per unit and no fixed costs. He faces two separate markets in the United States and in the UK. The goods sold in one market are never resold in the other. He sets one price P1 for the US market and another price P2 for the UK market (both measured in £). The demand in the United States is given by Q1=7,000-700P1 and the demand in the UK is given by Q2=1,200-200P1. Calculate the profit maximising output produced and price charged in each country by the…
