Question
In: Economics
Assume mark is a monopoly producer of illegal substances in his hometown. He faces a demand...
Assume mark is a monopoly producer of illegal substances in his hometown. He faces a demand for these substances represented by the demand function Q=150-3p .
TR=50q-1/3q^2
MR=50-2/3q
Marginal cost function is 1/3q+5 so profit max Q =45
(please check to see if TR MR and PM are correct) and also answer Is it reasonable to assume that mark would be a monopoly producer of illegal substances ....What does theory tell us about why he may be the only producer?
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
4. Assume a monopoly faces an inverse demand function of p = 150 - 3Q, and...
4. Assume a monopoly faces an inverse demand function of
p = 150 - 3Q, and has a constant marginal and
average cost of 30.
a. If the monopolist can perfectly discriminate, what is its
profit, consumer surplus and total surplus, and what is the
deadweight loss of monopoly?
b. If the firm is a single-price monopolist, what is its profit,
consumer surplus and total surplus, and what is the deadweight loss
of monopoly?
3. James is a producer in a monopoly industry. His demand curve, total revenue, curve, marginal...
3. James is a producer in a monopoly industry. His demand curve,
total revenue, curve, marginal revenue curve and total cost curve
are given as follows:
Q=100-4P
TR=25Q-0.25Q2
MR=25-0.5Q
TC=6Q
MC=6
a.How much output will James produce?
b. What price will James charge per unit of output?
c. How much profit will James make?
d. If this was a competitive firm. Calculate the profit
maximizing price and quantity and compare with price and quantity
under monopoly.
e. Calculate the amount...
3. James is a producer in a monopoly industry. His demand curve, total revenue, curve, marginal...
3. James is a producer in a monopoly industry. His demand curve,
total revenue, curve, marginal revenue curve and total cost curve
are given as follows:
Q=100-4P
TR=25Q-0.25Q2
MR=25-0.5Q
TC=6Q
MC=6
a. (4 points) How much output will James produce?
b. (4 points) What price will James charge per unit of
output?
c. (4 points) How much profit will James make?
d. (8 points) If this was a competitive firm. Calculate the
profit maximizing price and quantity and compare with...
Suppose that there is a natural monopoly that faces a demand curve D(P) = 10000 -...
Suppose that there is a natural monopoly that faces a demand
curve D(P) = 10000 - 2P with the total cost function C(Q) = 1000 +
100Q.
The profit maximizing quantity for the natural monopolist, in
the presence of a marginal cost pricing rule is ______ units
The profit maximizing price that will be set by the monopolist
that will be set in the presence of a marginal cost pricing rule is
$_______
The average total cost per unit at...
Mr. Smith is thinking about opening a bicycle shop in his hometown. He loves to take...
Mr. Smith is thinking about opening a bicycle shop in his
hometown. He loves to take his own bike on 50-mile trips with his
friends, but he believes that any small business should be started
only if there is a good chance of making a profit. Jerry can open a
small shop, a large shop, or no shop at all.
Mr. Smith has done some analysis about the profitability of the
bicycle shop. If Jerry builds the large bicycle shop,...
Imagine a monopoly producer in the computer industry calledMegasoft. The market demand for computer products...
Imagine a monopoly producer in the computer industry called Megasoft. The market demand for computer products and the total cost at each level of output is given below. Fixed costs equal $140,000. Fill in the rest of the table and answer the following questions:
Quantity (computers)
Price
Fixed Costs
Total Cost
Marginal Cost
Total Revenue
Marginal Revenue
Average Cost
100
$2,000
$14,000
$143,000
$200,000
$2,000
$1,430
200
$1,900
$14,000
$150,000
70
$380,000
$3,800
$750
300
$1,800
$14,000
$170,000
200...
3. Suppose a monopoly firm faces demand for its product of ? = 12 − 2?...
3. Suppose a monopoly firm faces demand for its product of ? =
12 − 2? and has total cost ?? = 8 + 4?. Its
production process, however, generates a pollution side effect
that imposes a total cost on all others of 2?.
a. Before any correction for external costs, identify….the total
revenue function of the firm.
TR = _________________________________________
b. ... the marginal revenue function of the firm. MR =
_________________________________________
c. … the marginal cost function of...
x A monopoly faces the demand curve P = 110 — Q and has the cost...
x A monopoly faces the demand curve P = 110 — Q and has the cost
function C (Q) = 10Q + Q2. Compare the total Q, profits, producer
surplus, consumer surplus and DWL compared to perfect competition
for: a. single-price monopoly, b. the perfectly
price-discriminating monopoly, c. and a quantity-discriminating
monopoly (block pricing) by considering one possible price
schedule: sell its first 25 units (Q1) at P1 = 85 and sell an
additional (Q2 — Q1) = —235 units...
A monopoly firm faces two markets where the inverse demand curves are &nbs
A monopoly firm faces two markets where the inverse demand
curves are
Market
A: PA =140 − 2.75QA,
Market
B: PB = 120 − QB.
The firm operates a single plant where total cost is C =
20Q+0.25Q^2,
and marginal cost is m = 20 + 0.5Q.
Suppose the firm sets a single price for both markets. Using the
information above, the profit maximizing price is $86.18 and the
profit maximizing quantity is 53.37 units. Given this information,
you determine...
The inverse demand curve a monopoly faces is p = 100 - 2Q The firm's cost...
The inverse demand curve a monopoly faces is
p = 100 - 2Q
The firm's cost curve is
C (Q) = 20 + 6Q
What is the profit-maximizing solution?
The profit-maximizing quantity is _______. (Round your answer to
two decimal places.)
The profit-maximizing price is $________. (Round your answer to
two decimal places.)
What is the firm's economic profit?
The firm earns a profit of $________. (Round your answer to two
decimal places.)
How does your answer change if C(Q)...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Suppose a company is looking to hedge a risk in the derivatives market. What, fundamentally, is...
- Training and Development assignment. Describe the usage of Computer Based Training (CBT) in McDonald's Company training...
- PUT IN JAVA PROGRAMMING LANGUAGE The Rectangle class: Design a class named Rectangle to represent a...
- Journal article summary on inter-group conflict Peer Reviewed Journal article from past 3 years. Please include...
- "Ethical Considerations" Please respond to the following: Reflect upon the responsibilities placed on auditors by the...
- A Japanese company has a bond outstanding that sells for 93 percent of its ¥100,000 par...
- What is the difference among the principles of modularization, abstraction, encapsulation, and separation of interface and...
ADVERTISEMENT