Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Question
Chapter 12, Problem 5P
(a)
To determine
The marginal revenue for each row.
(b)
To determine
The profit maximizing quantity for the demand schedule
(c)
To determine
The profit if the fixed cost is given to be
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A perfectly competitive firm is expected to make a $0 economic profit in the long-run. What type(s) of profit would you expect a
monopolist to earn in the long-run? Why the difference?
Use the editor to format your answer
Suppose you are a monopolist in the market for a specific
Q
video game. Your demand curve is given by P
=
80-
-
and
2
your marginal cost curve is MC = Q. Your fixed cost is $400.
i) Derive the marginal revenue curve.
ii) Calculate the equilibrium price and quantity.
iii) What is the profit?
Suppose a monopolist’s profit-maximizing output is 200 units per week and that the firm sells its output at a price of $60 per unit. The firm has total costs of $9,000 per week. Assume the monopolist is maximizing its profit and earns $30 per unit from the sale of the last unit produced each week.
a. What are the firm's weekly economic profits?
$
b. What is the firm's marginal cost?
$
c. What is the firm's average total cost?
Chapter 12 Solutions
Microeconomics (2nd Edition) (Pearson Series in Economics)
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