A firm in monopolistic competition has a firm demand curve of P = 130 – Q. The firm cost function is TC = 2 + 4Q. How many units will the firm produce?
A firm in monopolistic competition has a firm demand curve of P
= 130 – Q. The firm cost function is TC = 2 + 4Q. How many units
will the firm produce?
2/a/Perfect Competition
Firm cost equation: TC = 64 - 4Q + Q2
Market demand: Q = 608 - 4P
Solve for how many firms serve the market. Enter as a value.
b/Producer surplus is the:?
-Area below the market price and above the supply curve
-Minimum amount consumers will pay for a good.
-Area below the demand curve and above the market price of the
good.
-Area above the supply curve but below the demand curve.
c/If demand is P...
Consider a monopoly firm that faces the following demand curve,
total cost curve, and marginal cost: P(Q) = 120 – 4Q; TC(Q) = 400 +
4Q; MC = 4a. What is the marginal revenue (MR) equation?b. Determine the profit maximizing level of production for this
monopolist.c. What is the price that the monopolist will charge at the
profit maximizing level of production?d. What is the monopolists’ profit at the profit maximizing
level of output?e. Suppose the government regulates the industry...
A firm in monopolistic competition has the firm demand curve: P
= 60 - 2Q. The Total Cost equation is TC = 40 + Q2 How much
deadweight loss is created by the firm? Enter as a value.
Suppose the demand of the good is P = 10 - Q. A monopolist's
total cost is TC = 2 + 4Q. What's the optimal price and quantity of
the monopolist?calculate the monopolist's profit (or loss)also calculate the deadweight loss from monopoly
A firm has estimated their demand curve and cost function to be.
P=4000-2Q TC= 1,000,000 - 1500Q + 3.5Q2
a. Find the equation for Marginal Revenue (MR) as a function of
Q.
b. What price would a monopolist charge?
c. Calculate the amount of economic profit she would make.
d. Suppose that the monopolist was able to engage in
first-degree price discrimination. What quantity would she be
willing to produce?
e. What is the range of prices that she would...
1. Suppose a firm has the following total cost function: TC =
100 + 4q^2
a. What is the minimum price necessary for the firm to earn
profit? You must explain
your reasoning and process as to how your found the price you
found.
b. Below what price will the firm shut down in the short
run?
For a monopolist’s output: Demand: P= 90 – 4Q
Cost: TC = 10Q. For the profit maximizing monopolist that charges
the same price to all buyers:
Compute P and Q.
Compute the Lerner Index (Price Cost Markup). Use the Lerner
Index formula.
Compute price elasticity of demand at the price in answer
(a).
Explain the relationship between your answers to b and c.
Compute the deadweight loss from monopoly?
Compute the deadweight loss from monopoly that Gordon Tullock
would calculate?...
If demand for the price searching-firm (e.g. monopoly) is q=20-p
and total cost is 2+4q^2.
A)Compute the marginal revenue function. To check it what is
marginal revenue from selling 4 units of output?
B)What is the profit for this price searching firm?
1. Why does a firm in the monopolistic competition face a
downward-sloping demand curve?
2. How is it possible that monopolistically competitive firms
have market power and yet cannot earn a long-run profit?
Please explain both in more detail.
The total cost function of a perfectly competitive firm is TC=
12+2q^2+4q. What is the firm's optimal quantity at a market price
of $12? If over time, the firm could exit and not pay its fixed
cost, what would the optimal quantity be?