Question

In: Economics

A monopolist has a demand curve given by P = 92 - 8Q and a total cost curve given by TC = 60Q.

 

A monopolist has a demand curve given by P = 92 - 8Q and a total cost curve given by TC = 60Q.

 

  1. The associated marginal cost curve is MC = 60. What is the monopolist's marginal revenue curve?
    1. MR = 70 - 8Q
    2. MR = 92 - 16Q
    3. MR = 70 - 8Q
    4. MR = 56 - Q
    5. none of the above
  1. And what is the monopolist's profit maximizing quantity?
    1. 2
    2. 6
    3. 18
    4. 9
    5. none of the above
  1. And what price will the monopolist charge?
    1. 50
    2. 76
    3. 9
    4. none of the above
  1. And how much economic profit will the monopolist earn?
    1. 36
    2. 32
    3. 90
    4. d. 162
    5. e. none of the above

 

Solutions

Expert Solution

P=92-8Q

TR=PQ

TR=92Q-8Q^2

MR=d(TR)/dQ

MR=92-16Q

MC=60

At equilibrium MR=MC

92-16Q=60

16Q=32

Q=2

P=92-8(2)

P=76

A.Answer-B

B.Answer-A

C.Answer-B

D.For finding out economic profit we need data of implicit cost as well which is not given.

Answer-E

Rahul Sunny answered 1 year ago
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