Question
In: Economics
A monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost...
A monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost curve for its product: Q = 200 ; MR = 100-Q ; TC = 5Q ; MC = 5
a) Suppose that a tax of $5 for each unit produced is imposed by state government. What is the profit maximizing level of output?
b) Suppose that a tax of $5 for each unit produced is imposed by state government. What is the profit maximizing price?
c) Suppose that a tax of $5 for each unit produced is imposed by state government. How much profit does the monopolist earn?
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
A monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost...
A monopolist faces the following demand curve, marginal revenue
curve, total cost curve and marginal cost curve for its
product:
Q = 200 - 2P MR = 100 - Q TC = 5Q MC = 5
a) suppose that a tax of $5 for each unit produced is imposed by
state government. What is the profit maximizing level of
output?
b) suppose that a tax of $5 for each unit produced is imposed by
state government. What is the price...
A monopolist faces the following demand curve, marginal revenue, total cost curve and marginal cost curve...
A monopolist faces the following demand curve, marginal revenue,
total cost curve and marginal cost curve for its product: Q = 200 -
2P ; MR = 100 - Q ; TC = 5Q ; MC = 5
a) What level of output maximizes total revenue?. b) What is the
profit maximizing level of output?. c) What is the profit
maximizing price?. d) How much profit does the monopolist earn? e)
Suppose that a tax of $5 for each unit...
A monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost...
A monopolist faces the following demand curve, marginal revenue
curve, total cost curve and marginal cost curve for its product: Q
= 200 - 2P MR = 100 - Q TC = 5Q MC = 5 a. What is the profit
maximizing level of output? (10 pts.) b. What is the profit
maximizing price? (8 pts.) c. How much profit does the monopolist
earn? (10 pts.)Immersive Reader (28 Points)
Problem 1: A monopolist faces the following demand curve, marginal revenue curve, total cost curve and...
Problem 1: A monopolist faces the following demand curve,
marginal revenue curve, total cost curve and marginal cost curve
for its product: Market demand function: Q = 200 - 2P (direct form,
which shows Q as a function of P) Market demand function in the
indirect form: P = 100 – 0.5Q (indirect form because it shows P as
a function of Q). Marginal revenue function: MR = 100 – Q (Notice
that the slope of the MR function is...
Scenario A: A monopolist faces the following demand curve, marginal revenue curve, total cost curve for its product:
Scenario A: A monopolist faces the following demand curve,
marginal revenue curve, total cost curve for its product:Q=3500-5pMR= 250-QTC=15QMC=100What level of output maximizes total revenue?What is the profit maximizing level of output?What is profit maximizing price?How much profit does the monopolist earn?Suppose that a tax of $10 for each unit produced is imposed by
state government. What is the profit maximizing level of
output.
If a monopolist faces a linear demand curve, its marginal revenue curve will cross the quantity...
If a monopolist faces a linear demand curve, its marginal
revenue curve will cross the quantity axis at the quantity related
to:
a. MR=MC
b. the point of unit elasticity on demand curve
c. the minimum of average total cost
d. the profit maximizing price
A monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost curve for its product: Q= 200-2P MR=100-Q TC=5Q MC=5
A monopolist faces the following demand
curve, marginal revenue curve, total cost curve and marginal cost
curve for its product: Q= 200-2P MR=100-Q TC=5Q MC=5a) Suppose that a tax of $5 for each unit produced is imposed by
state government. What is the profit maximizing level of
output?b) Suppose that a tax of $5 for each unit produced is imposed by
state government. What is the profit maximizing price?c) Suppose that a tax of $5 for each unit produced is...
Assume a profit maximizing monopolist faces the following demand, marginal revenue and cost functions:
Assume a profit maximizing monopolist faces the following
demand, marginal revenue and cost functions: Demand: P = 400 - 50Q
Total Cost: TC = 100Q Marginal cost MC = 100 Marginal Revenue MR =
400 – 100Qa) Find the profit maximizing output level for the
monopolist.b) At this level of output what price will the monopolist
charge?c) What is the total profit for the monopolist?d) If the monopolist were a revenue maximizer instead of a
profit maximizer, what would be...
A monopolist faces a single market with the following demand curve and total cost P =...
A monopolist faces a single market with the following demand
curve and total cost
P = 180 – 2.5Q and TC = 2Q2
i. Determine the quantity of output that it should produce and
the price it should charge to maximize profit. Then, calculate the
profit.
2 a.) Draw the demand, marginal revenue and marginal cost curve for a monopolist. Show the...
2
a.) Draw the demand, marginal revenue and marginal cost curve
for a monopolist. Show the equilibrium price and quantity supplied
and total profit. Show the equilibrium price and quantity supplied
and total profit.
b.) Suppose new policy suggest the government can imposed a tax
on monopolists equal to 25 percent of their economic profits, how
this affect the output level of the firm? How about the price?
Explain.
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