Question

In: Economics

I. Suppose the inverse demand function for a monopolist’s product is given by ? = 150...

I. Suppose the inverse demand function for a monopolist’s product is given by ? = 150 − 2? and the total cost function is given by ?? = 100 + 30?

1. Determine the profit-maximizing price and quantity

2. Determine the maximum profits

II. Suppose the inverse demand function for a monopolistically competitive firm’s product is given by

? = 100 − 2?
and the cost function is given by ?? = 52 + 4?

1. Determine the profit-maximizing price and quantity

2. Determine the maximum profits.

Solutions

Expert Solution

Ans.1) the monopolist firm's profit-maximizing price is $90, the profit-maximizing quantity is 30 units, and the maximum profit is $1,700.

2) the monopolistically competitive firm's profit-maximizing price is $52, the profit-maximizing quantity is 24 units, and the maximum profit is $1,100.

Rahul Sunny answered 7 months ago
Next > < Previous

Related Solutions

3. Suppose the inverse demand for a monopolist’s product is given by P (Q) = 150...
3. Suppose the inverse demand for a monopolist’s product is given by P (Q) = 150 – 3Q The monopolist can produce output in two plants. The marginal cost of producing in plant 1 is MC1 = 6Q1 While the marginal cost of producing in plant 2 is MC2 = 2Q2 (Kindly answer clearly) a) How much output should be produced in each plant? b) What price should be charged?
2. Suppose the demand function for a monopolist’s product is given by P = 300 –...
2. Suppose the demand function for a monopolist’s product is given by P = 300 – 3Q and the cost function is given by C = 1500 + 2Q2 (Kindly answer clearly) A) Calculate the MC. B) Calculate the MR. C) Determine the profit-maximizing price. D) Determine the profit-maximizing quantity. E) How much profit will the monopolist make? F) What is the value of the consumer surplus under monopoly? G) What is the value of the deadweight loss?
1. Suppose the inverse demand function for a monopolistically competitive firm’s product is given by ?...
1. Suppose the inverse demand function for a monopolistically competitive firm’s product is given by ? = 100 − 2? and the cost function is given by ?? = 52 + 4? 1. Determine the profit-maximizing price and quantity 2. Determine the maximum profits. 3. Can we say that this firm is operating in the long-run or short-run equilibrium at the equilibrium price and quantity? 2. Suppose the inverse demand for a monopolist’s product is given by ? = 110...
The demand for a monopolist’s product is: P = 40 -2Q; the monopolist’s total cost function...
The demand for a monopolist’s product is: P = 40 -2Q; the monopolist’s total cost function is: TC = 8Q + 0.5Q^2.(a)Under free monopoly, what is the numerical value of the dead-weight loss (DWL)? (b) Compute the monopolist’s break-even points and graph in the same diagram, demand (D), marginal revenue (MR), marginal cost (MC) and average cost (AC); in diagrams directly below, graph total revenue (TR), total cost (TC) and profit (pi).(c) Under short-run regulation, what are the market gains?
The demand for a monopolist’s product is: P = 40 -2Q; the monopolist’s total cost function...
The demand for a monopolist’s product is: P = 40 -2Q; the monopolist’s total cost function is: TC = 8Q + 0.5Q^2.(a)Under free monopoly, what is the numerical value of the dead-weight loss (DWL)? (b) Compute the monopolist’s break-even points and graph in the same diagram, demand (D), marginal revenue (MR), marginal cost (MC) and average cost (AC); in diagrams directly below, graph total revenue (TR), total cost (TC) and profit (pi).(c) Under short-run regulation, what are the market gains?
The inverse demand function for a product by a company that montizes the market is given...
The inverse demand function for a product by a company that montizes the market is given by v = 200 - 0.03m and supply is given by v = 0.05m a) Draw and calculate market balance (show price & quantity and a picture) b)The product damage to society is 70$ per unit. The government uses Pigovjan tax on the production of the company. Update the picture from a) in regards to the Pigovjan tax/1b.
Inverse demand function of a product by a company that montizes the market is given by...
Inverse demand function of a product by a company that montizes the market is given by v = 200 - 0.03m and supply is given by v = 0.05m 1a.. Draw and calculate market balance (show price & quantity and a picture) 1b..The product damage to society is 70$ per unit. The government uses Pigovjan tax on the production of the company. Update the picture from 1.a in regards to the Pigovjan tax/1b.
Suppose the inverse demand for a product produced by a single firm is given by P...
Suppose the inverse demand for a product produced by a single firm is given by P = 200 − 5Q and this firm has a marginal cost of production of MC = 20 + 2Q. a. If the firm cannot price-discriminate, what is the profit-maximizing price and level of output for this monopolist? What are the levels of producer and consumer surplus in the market? What is the deadweight loss? b. If the monopolist can practice perfect price discrimination, what...
Suppose the inverse demand for a product produced by a single firm is given by: P...
Suppose the inverse demand for a product produced by a single firm is given by: P = 76 – 4(Q) and this firm has a marginal cost of production of: MC = 10 1.  If the firm cannot price-discriminate , what is the profit-maximizing a)price     b)and level of output?     2. If the firm cannot price-discriminate , what is : a)the consumer surplus     , b)the producer surplus     c)the dead-weight loss     3. If the firm can practice perfect price discrmination,...
Suppose the inverse demand for a product produced by a single firm is given by: P...
Suppose the inverse demand for a product produced by a single firm is given by: P = 76 – 4(Q) and this firm has a marginal cost of production of: MC = 10 1.  If the firm cannot price-discriminate , what is the profit-maximizing a)price?    b)and level of output?     2. If the firm cannot price-discriminate , what is : a)the consumer surplus?    b)the producer surplus?    c)the dead-weight loss?    3. If the firm can practice perfect price...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT