Question
In: Economics
A monopolist has a marginal revenue curve given by MR = 500 - 5Q, and a...
A monopolist has a marginal revenue curve given by MR = 500 - 5Q, and a total cost curve given by TC = 1000 + 100Q. The monopolist has constant marginal cost of 100. What is the monopolist's demand curve? Calculate the monopolist's profit maximizing price and quantity. What is the monopolist's profit (or loss)? Show your work to the best of your ability.
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
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...
Given the demand curve for a monopolist: Qd= 60 -2 P and the marginal revenue curve:...
Given the demand curve for a monopolist: Qd= 60 -2 P and the
marginal revenue curve: MR = 30 -Q. Marginal cost equals average
cost at $14. What is the price and quantity that the
profit-maximizing monopolist will produce? Graph these curves
andlabel theequilibrium points.
b) Ifthis were a competitive industry, what price and quantity
would be produced? Show this on the above graphand show your work
(answers) below.
c) What is the monopolist's profit? What is the consumer surplus...
Suppose a monopolist faces consumer demand given by P=500-5Q with a constant marginal cost of $20...
Suppose a monopolist faces consumer demand given by P=500-5Q
with a constant marginal cost of $20 per unit (where marginal
cost equals average total cost. assume the firm has no fixed
costs). If the monopoly can only charge a single price, then it
will earn profits of?
A monopolist is facing the following demand curve P = 50 − 5Q. The monopolist has...
A monopolist is facing the following demand curve P = 50 − 5Q.
The monopolist has the following marginal cost MC = 10. The
monopolist knows exactly the willingness to pay of each individual
consumer and charge consumers individual prices. Calculate the
monopolist’s profit (assuming FC=0).
(a) π=40
(b) π=80
(c) π = 160
(d) None of the above.
Why does the average revenue and marginal revenue curve seperate for a monopolist.
Why
does the average revenue and marginal revenue curve seperate for a
monopolist.
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 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...
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)
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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