A monopolist faces a demand equation given by P=20−Q�=20−�, a marginal revenue equation given by MR=20−2Q��=20−2�, and a constant marginal cost MC=6��=6.What is the profit-maximizing price set by the monopolist? Question 10Answer a. $2 b. $1 c. $13 d. $6

A monopolist faces a demand equation given by P=20−Q�=20−�, a marginal revenue equation given by MR=20−2Q��=20−2�, and a constant marginal cost MC=6��=6.What is the profit-maximizing price set by the monopolist? Question 10Answer a. $2 b. $1 c. $13 d. $6

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Suppose a monopolist's profit-maximizing output is 400 units per week and that the firm sells its output at a price of $40 per unit. The firm has total costs of $8,000 per week. Assume the monopolist is maximizing its profit and earns $20 per unit from the sale of the last unit produced each week. Instructions: Enter your answers as a whole number. a. What are the firm's weekly economic profits? b. What is the firm's marginal cost? c. What is the firm's average total cost? A
Create graph that includes: Demand curve, marginal cost, and marginal revenue. Identify the profit-maximizing quantity and price for this monopolist. To do this you will need to determine marginal revenue at each level of output. Choose output that satisfies the monopolist’s profit maximizing condition of MR = MC. Does this firm earn a profit? How much profit if they do?
Use the graph to answer the following 5 questions. A single priced unregulated monopolist faces the demand curve and has the cost curves illustrated in the diagram below. 1. What is the profit Price maximizing quantity of output? 70 a) 25 units. b) 40 units. c) 50 units. d) 60 units. 60 e) 70 units. f) 80 units g) 90 units Marginal Cost 50 2. What price does this monopolist charge? a) $58 b) $20 40 Average Total Cost c) $35 d) $30 e) $45. f) $50 30 g) $40 h) $38 3. What are the total profits? a) $1200 b) $0 c) $1250 d) $200 e) $250. f) $2250. g) $150 h) $1600 20 10 Demand 20 40 60 80 100 120 140 160 Quantity
Question 33 Suppose a monopolist faces the demand curve P = 200 – 2Q, has marginal cost curve MC = 2Q, and zero fixed costs. If the monopolist can perfectly price discriminate, which of the following is true? The monopolist sells 33 units at a profit of 3300. The monopolist sells 33 units at a profit of 1650. The monopolist sells 50 units at a profit of 5000. The monopolist sells 50 units at a profit of 2500.
Draw a graph with linear demand and marginal curves and a horizontal MC curve. Find the monopolist’s profit-maximizing price (P*) and output (Q*). Now change the demand curve by rotating it clockwise (making it steeper) through the point (Q*, P*). What is the new profit-maximizing price and quantity? Is price higher or lower? Relate your answer to the fact that a monopolist does not have a supply curve
Help me please
Suppose that a profit-maximizing monopolist faces a demand curve of P = 240 – 4Q, a marginal revenue ofP=240 – 8Q, a marginal cost of 8Q, and an average total cost of 4Q. a. What quantity will the monopolist supply? b. What price will the monopolist charge? c. How much revenue will the monopolist make at the profit maximizing quantity? d. What is the monopolist's total cost at the profit maximizing quantity? e. How much profit will the monopolist make?
I will rate and like, thank you! Easy economics question. Create graph that includes: Demand curve, marginal cost, and marginal revenue. Identify the profit-maximizing quantity and price for this monopolist. To do this you will need to determine marginal revenue at each level of output. Choose output that satisfies the monopolist’s profit maximizing condition of MR = MC. Does this firm earn a profit? How much profit if they do?
Consider the following market demand p= 20 - 0.02 Q where p is the price in $ or kilo and Q is the quantity demanded in kilo/ per week.The marginal cost of schedule is given by MC = 2 + 0.03 Q. a. if this were a perfectly competitive market what would be the equilibrium price and quantity show your work? b. if this were a monopolized market what would be the equilibrium price and quantity show your work? c. what is the dead weight loss in the monopolized market give the number and show your work?
Use the following demand schedule for a pure monopolist to calculate total revenue and marginal revenue at each quantity. Plot the monopolist’s demand curve and marginal-revenue curve, and explain the relationships between them. Explain why the marginal revenue of the fourth unit of output is $3.50, even though its price is $5. What generalization can you make as to the relationship between the monopolist’s demand and its marginal revenue? Suppose the marginal cost of successive units of output was zero. What output would the single-price monopolist produce, and what price would it charge?
The demand curve of a monopolist is Q=2000-100P. The marginal cost of a unit of the product is constant and equal 4. In addition, the monopolist has to pay a fixed cost of 1000. a. Write the revenue function. b. Write the total cost function. c. Find the profit-maximizing level of the output, and the corresponding profit.
1) If a monopolist is producing a quantity where marginal revenue is equal to $700 and the marginal cost is equal to $700, the monopolist should ________ to maximize profits. pickoneoption: a.decrease production and increase the price b. decrease production and decrease the price c. continue producing at the current price d. increase production and lower the price e. increase production and increase the price 2) In the long run, monopolistically competitive firms like fast-food restaurants operate at a price that pick one: a) drives economic profit to zero b. equals to the average variable cost. c. equals to the minimum average total cost. d. allows them to make a small economic profit. e. equals to the marginal cost.