Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN: 9781305971493
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 15, Problem 2CQQ
To determine
The relationship between price, marginal revenue and marginal cost.
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Students have asked these similar questions
Consider a monopoly firm producing laptops. Below are the equations describing this firm's economic conditions.
Demand: Q = 10 – P
Marginal Revenue: MR= 10 – 2Q
Total Cost: TC = 4 + Q + 0.5Q²
||
Marginal Cost: MC=1+Q
Choose all correct statements.
The produced quantity is 3.
В.
The price charged is 6.
n C.
The profit this monopoly firm can make is 9.5.
D.
None of above is correct.
You are the manager of a monopoly, and your analysts have estimated your demand and cost functions as P = 300 − 3Q and C(Q) = 1,500 + 2Q2, respectively.
a. What price-quantity combination maximizes your firm’s profits?
Price:
Quantity:
b. Calculate the maximum profits.
$
c. Is demand elastic,
inelastic
unit elastic
Elastic
d. What price-quantity combination maximizes revenue?
Price:
Quantity:
e. Calculate the maximum revenues.
$
f. Is demand elastic, inelastic, or unit elastic at the revenue-maximizing price-quantity combination?
multiple choice
Elastic
Unit elastic
Inelastic
Draw the graph. If the monopoly is a doing perfect price discrimination, then:
the monopoly produces a quantity Q = ______ where ________________ (which curves intersect?)
the monopoly charges a price of ________ (trick question!!!!)
the consumer surplus is CS = ______.
the producer surplus is PS = _________(identify the area on the graph and calculate it).
this monopoly ________ (is / is not) efficient because ______________________.
Chapter 15 Solutions
Principles of Microeconomics (MindTap Course List)
Ch. 15.1 - Prob. 1QQCh. 15.2 - Prob. 2QQCh. 15.3 - Prob. 3QQCh. 15.4 - Prob. 4QQCh. 15.5 - Prob. 5QQCh. 15 - Prob. 1CQQCh. 15 - Prob. 2CQQCh. 15 - Prob. 3CQQCh. 15 - Prob. 4CQQCh. 15 - Prob. 5CQQ
Ch. 15 - Prob. 6CQQCh. 15 - Prob. 1QRCh. 15 - Prob. 2QRCh. 15 - Prob. 3QRCh. 15 - Prob. 4QRCh. 15 - Prob. 5QRCh. 15 - Prob. 6QRCh. 15 - Prob. 7QRCh. 15 - Prob. 8QRCh. 15 - Prob. 1PACh. 15 - Prob. 2PACh. 15 - Prob. 3PACh. 15 - Prob. 4PACh. 15 - Prob. 5PACh. 15 - Prob. 6PACh. 15 - Prob. 7PACh. 15 - Prob. 8PACh. 15 - Prob. 9PACh. 15 - Prob. 10PACh. 15 - Prob. 11PACh. 15 - Prob. 12PA
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