Question

In: Economics

A firm faces the demand curve: P = 4,762 - 5Q. What is the firm’s revenue...

A firm faces the demand curve: P = 4,762 - 5Q. What is the firm’s revenue maximizing price

Solutions

Expert Solution


Related Solutions

Monopolistic firm has the inverse demand function p = 250 – 5Q. Firm’s total cost of...
Monopolistic firm has the inverse demand function p = 250 – 5Q. Firm’s total cost of production is C = 1250 + 10Q + 8Q2 : 1. Create a spreadsheet for Q = 1 to Q = 20 in increments of 1. Determine the profit-maximizing output and price for the firm and the consequent level of profit. 2. Will you continue the production at the profit-maximizing level of output? Show why or why not? 3. Calculate the Lerner Index of...
A firm faces the demand curve P=80 - Q. What is the output level that maximizes...
A firm faces the demand curve P=80 - Q. What is the output level that maximizes total revenue? Its total cost curve is given by C = 50 + 0.2Q2 . Set up the profit function π=f (Q) and find the output level that will maximize its profit.
Firm A sells a good and faces an inverse demand curve of P = 120 –...
Firm A sells a good and faces an inverse demand curve of P = 120 – Q, has constant marginal costs of 60 and no fixed costs (c) For each of the following four situations: (1) state whether you would expect quantities Qa and Qb to rise, stay the same or fall, and (2) provide a brief (two to three sentence maximum) explanation. Note: I’m not looking for nor expecting *any* calculation here. A brief explanation of how and why...
Suppose that a firm faces the demand curve, P = 100 - 3Q, where P denotes...
Suppose that a firm faces the demand curve, P = 100 - 3Q, where P denotes price in dollars and Q denotes total unit sales. The cost equation is TC = 200 + 22Q. a. Determine the firm’s profit-maximizing output and price.    b. Suppose that there is a change in the production process so that the cost equation becomes TC = 80 + 12Q + Q2.   Determine the resulting effect on the firm’s output:    c. Using the two...
A firm with market power faces an inverse demand curve of P = 100 – 10Q....
A firm with market power faces an inverse demand curve of P = 100 – 10Q. Assume that the firm faces a marginal cost curve of MC = 10 + 10Q. (4)a. If the firm cannot price discriminate, what are the profit maximizing levels of output and price? (4)b. Given you answers in part “a,” what are the values of consumer surplus, producer surplus and deadweight welfare loss? (4)c. If the firm is able to practice first degree (perfect) price...
An oligopoly firm faces a kinked demand curve with the two segments given by: P =...
An oligopoly firm faces a kinked demand curve with the two segments given by: P = 230 – 0.5Q and    P = 280 – 1.5Q. The firm currently has a constant marginal cost, MC of $150. State the assumptions of the kinked demand model in terms of price-matching and elasticity. Determine the quantity and price at the kink. Calculate how much higher the marginal cost must be before the firms would change the profit-maximizing output and therefore the price.
A monopolist faces the following average revenue (demand) curve: P = 100 – 0.01Q Where Q...
A monopolist faces the following average revenue (demand) curve: P = 100 – 0.01Q Where Q is weekly production and P is price, measured in cents per unit. The firm’s cost function is given by C = 50Q + 30,000. Assume that the firm maximizes profits. What is the level of production, price, and total profit per week? If the government decides to levy a tax of 10 cents per unit on this product, what will be the new level...
Monopolistic firm faces the inverse demand function p = 250 – 6Q. Firm’s total cost of...
Monopolistic firm faces the inverse demand function p = 250 – 6Q. Firm’s total cost of production is C = 1250 + 10Q + 8Q2 : 1. Create a spreadsheet for Q = 1 to Q = 20 in increments of 1. Determine the profit-maximizing output and price for the firm and the consequent level of profit. 2. Will the firm continue the production at the profit-maximizing level of output? Show why or why not? 3. Calculate the Lerner Index...
Monopolistic firm faces the inverse demand function p = 250 – 6Q. Firm’s total cost of...
Monopolistic firm faces the inverse demand function p = 250 – 6Q. Firm’s total cost of production is C = 1250 + 10Q + 8Q2 : 1. Create a spreadsheet for Q = 1 to Q = 20 in increments of 1. Determine the profit-maximizing output and price for the firm and the consequent level of profit. 2. Will the firm continue the production at the profit-maximizing level of output? Show why or why not? 3. Calculate the Lerner Index...
Monopolistic firm faces the inverse demand function p = 250 – 6Q. Firm’s total cost of...
Monopolistic firm faces the inverse demand function p = 250 – 6Q. Firm’s total cost of production is C = 1250 + 10Q + 8Q2 : 1. Create a spreadsheet for Q = 1 to Q = 20 in increments of 1. Determine the profit-maximizing output and price for the firm and the consequent level of profit. 2. Will the firm continue the production at the profit-maximizing level of output? Show why or why not? 3. Calculate the Lerner Index...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT