Tangy Tangerines is a monopolistic firm in the market for tangerines. The following equations describe the demand for, and the cost of producing tangerines, where Q is output measured in thousand pounds, and P is price per pound. Demand: P = 59-3Q Marginal Cost: MC = 3+Q Total Cost: TC = 4+30+1 +0.50² The monopolist will charge what price and eam what profit? Price $35 and Profit-$220 thousand. Price $19 and Profit-$53 thousand Price $8 and Profit=$220 thousand Price $19 and Profit-$14 thousand.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question
Tangy Tangerines is a monopolistic firm in the market for tangerines. The following equations describe the demand for, and the cost of
producing tangerines, where Q is output measured in thousand pounds, and P is price per pound.
Demand: P 59-3Q
Marginal Cost: MC = 3 + Q
Total Cost: TC = 4 + 3Q+0.50²
The monopolist will charge what price and earn what profit?
Price $35 and Profit-$220 thousand.
Price
$19 and Profit $53 thousand. *
Price $8 and Profit=$220 thousand.
Price $19 and Profit= $14 thousand.
Transcribed Image Text:Tangy Tangerines is a monopolistic firm in the market for tangerines. The following equations describe the demand for, and the cost of producing tangerines, where Q is output measured in thousand pounds, and P is price per pound. Demand: P 59-3Q Marginal Cost: MC = 3 + Q Total Cost: TC = 4 + 3Q+0.50² The monopolist will charge what price and earn what profit? Price $35 and Profit-$220 thousand. Price $19 and Profit $53 thousand. * Price $8 and Profit=$220 thousand. Price $19 and Profit= $14 thousand.
Expert Solution
steps

Step by step

Solved in 4 steps with 7 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education