Question
In: Economics
Suppose the demand and marginal cost equations for a monopolist are as follows: Q = 6600...
Suppose the demand and marginal cost equations for a monopolist are as follows: Q = 6600 – 2P MC = 2Q.
a. Find the inverse demand equation and the marginal revenue equation.
b. Find the profit maximizing quantity and price for this monopolist (remember to set MR = MC and solve for Q).
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
Suppose the demand and marginal cost equations for a monopolist are as follows: Q = 6600 – 2P MC = 2Q.
Suppose the demand and marginal cost equations for a
monopolist are as follows: Q = 6600 – 2P MC = 2Q. a. Find the
inverse demand equation and the marginal revenue equation. b. Find
the profit maximizing quantity and price for this monopolist
(remember to set MR = MC and solve for Q).
Suppose a monopolist faces a market demand curve Q = 50 - p. If marginal cost...
Suppose a monopolist faces a market demand curve Q = 50 - p. If
marginal cost is constant and
equal to zero, what is the magnitude of the welfare loss? If
marginal cost increases to MC = 10, does welfare loss increase or
decrease? Use a graph to explain your answer
Suppose a monopolist faces a market demand curve Q= 120 - 2p. a. If marginal cost...
Suppose a monopolist faces a market demand curve Q= 120 - 2p. a.
If marginal cost is constant and equal to zero, what is the
magnitude of the welfare loss? b. If marginal cost increases to MC=
10, does welfare loss increase or decrease? Use a graph to explain
your answer.
A monopolist has a marginal cost curve MC=Q and a home market demand P=30-Q. The monopolist...
A monopolist has a marginal cost curve MC=Q and a home market
demand P=30-Q. The monopolist can also sell in a foreign market at
a price pf Pf=12. Find and graph the quantity produced, quantity
sold at home, and quantity sold in the foreign market, as well as
the price charged at-home market. Explain why the monopolist's
profits would fall if it were to produce the same quantity but sell
more in the home market.
A monopolist with marginal cost of MC=Q faces a demand curve of QD = 20 -...
A monopolist with marginal cost of MC=Q faces a demand curve of
QD = 20 - 2P. This implies that P = 10 - (1/2)Q and that the
marginal revenue is MR = 10 - Q. a. Sketch demand, marginal
revenue, and marginal cost curves. b. What quantity and price will
the monopolist set? c. What quantity and price would the monopolist
set if it produced at the efficient market outcome where P=MC? d.
Identify the CS, PS and DWL...
Suppose that a monopolist whose marginal cost curve is MC(Q)=Qfaces the demand curve P=10-2Q.
Suppose that a monopolist whose marginal cost curve is MC(Q)=Q
faces the demand curve P=10-2Q. What is monopolist's
profit-maximizing quantity, profit-maximizing price, the total
surplus (under monopoly profit maximization), also called the
"monopoly market surplus," and if the monopolist can perfectly
price discriminate, then deadweight loss equals...?
A monopolist has the following demand function and marginal cost function P = 120 – Q...
A monopolist has the following demand function and marginal cost
function P = 120 – Q and MC = 30 + Q.
i. Derive the monopolist’s marginal revenue function.
ii. Calculate the output the monopolist should produce to
maximize its profit.
ii. (continuation)
iii. What price does the monopolist charge to maximize its
profit?
Now assume that the monopolist above split into two large firms
(Firm A and Firm B) with the same marginal cost as the
monopolist.
Let qA...
A monopolist with constant average and marginal cost equal to 8 faces demand Q = 100...
A monopolist with constant average and marginal cost equal to 8
faces demand Q = 100 - P, implying that its marginal revenue is MR
= 100 - 2Q. (Wrong question Its profit maximizing quantity is ...
should be deadwieght loss) the deadweight loss is Select one:
a. 1058
b. 966
c. none of the answers.
d. 3680
1) Consider a monopolist with demand Q = 120-2p and marginal cost MC = 40. Determine...
1) Consider a monopolist with demand Q = 120-2p and marginal
cost MC = 40. Determine profit, consumer surplus, and social
welfare in the following three cases:
a)single-price monopolist
b)perfect price discrimination
c)Consider that the firm is operating in a perfectly competitive
market. Find the profit, consumer surplus, and social welfare under
this situation.
Show this study graphically.
Suppose that market demand for a good is Q = 480 - 2p. The marginal cost...
Suppose that market demand for a good is Q = 480 - 2p. The
marginal cost is MC = 2Q. Calculate the following in the context of
a monopoly market. a) Profit maximizing price and quantity. b)
Market power. c) Consumer surplus and producer surplus. d) Dead
Weight Loss (DWL).
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