1.6 The inverse demand curve a monopoly faces is p=100-Q. The firm's cost curve is C(Q)...

1.6 The inverse demand curve a monopoly faces is p=100-Q. The firm's cost curve is C(Q) = 10 + 5Q(soMC = 5).What is the profit - maximizing solution? How does your answer change if C(Q) = 100 + 5Q?

1.10 The inverse demand curve a monopoly faces is p = 10Q^-0.5

a. What is the firm's marginal revenue curve?

b. The firm's cost curve is C(Q) = 5Q. What is the profit - maximizing solution?

3.9 Consider the inverse demand curve p = 210 - 3Q and the cost function C = 100 + 2Q^2 . If the mar- ket were competitive, calculate the incidence of a specific tax, t = 7, that would fall on consumers. Calculate the incidence of the same tax if the market were instead a monopoly.

Expert Solution

Rahul Sunny answered 2 years ago

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)...

The inverse demand function a monopoly faces is P = 100 − Q. The firm’s cost...

The inverse demand function a monopoly faces is P = 100 − Q. The firm’s cost curve isTC(Q) = 10 + 5Q.Suppose instead that the industry is perfectly competitive. The industry demand curve and firm cost function is same as given before. (j) (4 points) What is the level of output produced? Compare it to the output of single price monopoly. (k) (4 points) What is the equilibrium price for this industry? Compare it to the price charged of single...

A monopoly faces the demand curve P = 100 -.01Q, where P is price and Q...

A monopoly faces the demand curve P = 100 -.01Q, where P is price and Q is weekly production measured in cents per unit. The firm’s cost function is C = 50Q + 20,000. Assuming the firm maximizes profit,a. What is the level of production, price, and total profit per week?b. If the government decides to put a tax of 20 cents per unit ON THE BUYERS of this product, what will be the new level of production, price the...

If a monopoly faces an inverse demand curve of p equals=390390minus−Q, has a constant marginal and...

If a monopoly faces an inverse demand curve of p equals=390390minus−Q, has a constant marginal and average cost of $30, and can perfectly price discriminate, what is its profit? What are the consumer surplus, welfare, and deadweight loss? How would these results change if the firm were a single-price monopoly?

A monopolistically competitive firm faces the inverse demand curve P = 100 – Q, and its...

A monopolistically competitive firm faces the inverse demand curve P = 100 – Q, and its marginal cost is constant at $20. The firm is in long-run equilibrium. a. Graph the firm's demand curve, marginal revenue curve, and marginal cost curve. Also, identify the profitmaximizing price and quantity on your graph. b. What is the value of the firm's fixed costs? c. What is the equation for the firm's ATC curve? d. Add the ATC curve to your graph in...

A firm's total cost of producing Q units of output is C (Q) = 79 + 20Q. The inverse demand curve for the firm's product is P(Q) = 100-Q, where P denotes the price of the product.

A firm's total cost of producing Q units of output is C (Q) = 79 + 20Q. The inverse demand curve for the firm's product is P(Q) = 100-Q, where P denotes the price of the product. a) If the price of the product is set equal to the firm's marginal cost, what profit will the firm earn? b) If the firm charges a two-part tariff (a fixed fee plus a per unit price), how large is the fixed fee? How large...

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 monopolist with the cost function C(q) = q faces the market demand curve p =...

A monopolist with the cost function C(q) = q faces the market demand curve p = 101 -2q. What is the maximum amount the monopolist is willing to pay for advertising that shifts its demand curve to p = 101-q?

Monopoly with linear inverse demand. Consider a monopolist facing a linear inverse demand curve p(q)= a-...

Monopoly with linear inverse demand. Consider a monopolist facing a linear inverse demand curve p(q)= a- bq, and cost function C(q)= F + cq, where F denotes its fixed costs and c represents the monopolist's (constant) magical cost a>c 1. Graph demand, marginal revenue and marginal cost. Label your graph carefully, including intercepts 2. Solve the profit maximizing output q^m. To do this, first write down the expression for MR=MC and solve for the optimal quantity. Next find the price...

A monopoly faces market demand Q = 30−P and has a cost function C(Q) = Q^2...

A monopoly faces market demand Q = 30−P and has a cost function C(Q) = Q^2 (a) Find the profit maximizing price and quantity and the resulting profit to the monopoly. (b) What is the socially optimal price? Calculate the deadweight loss (DWL) due to the monopolist behavior of this firm. Calculate consumer surplus (CS) and producer surplus (PS) given the profit maximizing price. (c) Assume that the government puts a price ceiling on the monopolist at P =22. How...

Question