A monopolist faces a demand curve given by Qa= 270 – P and faces a sho given by TC = 30 + 3q2. How much are the firm's fixed costs? b. Write down an equation for the monopolists' revenue Write down an equation for the monopolists' elasticity of demand c.
A monopolist faces a demand curve given by Qa= 270 – P and faces a sho given by TC = 30 + 3q2. How much are the firm's fixed costs? b. Write down an equation for the monopolists' revenue Write down an equation for the monopolists' elasticity of demand c.
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter9: Monopoly
Section: Chapter Questions
Problem 33P: Draw a monopolists demand curve, marginal revenue, and marginal cost curves. Identify the...
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![A monopolist faces a demand curve given by Qa= 270 – P and faces a short run total cost function
given by TC = 30 + 3q?.
а.
How much are the firm's fixed costs?
b. Write down an equation for the monopolists' revenue
с.
Write down an equation for the monopolists' elasticity of demand
d. What is the output level that maximizes the firm's revenue?
e. Find the output level that maximizes the monopolists' profits.
f. If the monopolist was forced by a regulator to sell its output at marginal cost, how much output
would he produce?
(Make sure to include your working by typing or photographing your working)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F390faf21-9cfd-470b-9e40-50b400b5c319%2Ffbe4150e-d997-4a66-a518-bdcf9af77fd3%2Fw8e1ad_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A monopolist faces a demand curve given by Qa= 270 – P and faces a short run total cost function
given by TC = 30 + 3q?.
а.
How much are the firm's fixed costs?
b. Write down an equation for the monopolists' revenue
с.
Write down an equation for the monopolists' elasticity of demand
d. What is the output level that maximizes the firm's revenue?
e. Find the output level that maximizes the monopolists' profits.
f. If the monopolist was forced by a regulator to sell its output at marginal cost, how much output
would he produce?
(Make sure to include your working by typing or photographing your working)
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