A monopolist produces a single good X but sells it in two separate markets. The demafunction for each market isP, = 50 – 4Q1 and P2 = 80 – 3Q2where P, and Q1, P2 and Q2, are the price and quantity in market 1 and 2, respectiveThe cost function is TC = 120 + 8Q1 + 8Q2.(a) Find the total revenue for the firm in terms of Q1 and Q2-(b) Find the profit function in terms of Q, and Q2.(c) Write down the first and second order partial derivatives, using the function in (b)(d) Solve the system of equationsдл= 0and= 0aQ2"de(e) Show that the point (Q1.Qz) is a maximum.(f) Find the maximum profit.

Since you have posted a question with multiple subparts, we will solve the first three subparts for…

A monopolist produces a single good X but sells it in two separate markets. The dem function for each market is P, = 50 – 4Q, and P2 = 80 – 3Q2 where P, and Q,, Pz and Q2, are the price and quantity in market 1 and 2, respectiv The cost function is TC = 120 + 8Q, + 8Q2. (a) Find the total revenue for the firm in terms of Q, and Q2. (b) Find the profit function in terms of Q, and Q2. (c) Write down the first and second order partial derivatives, using the function in (b) (d) Solve the system of equations ən :0 and = 0 "de zde (e) Show that the point (Q1.Qz) is a maximum. (1) Find the maximum profit.

A monopolist produces a single good X but sells it in two separate markets. The dem function for each market is P, = 50 – 4Q, and P2 = 80 – 3Q2 where P, and Q,, Pz and Q2, are the price and quantity in market 1 and 2, respectiv The cost function is TC = 120 + 8Q, + 8Q2. (a) Find the total revenue for the firm in terms of Q, and Q2. (b) Find the profit function in terms of Q, and Q2. (c) Write down the first and second order partial derivatives, using the function in (b) (d) Solve the system of equations ən :0 and = 0 "de zde (e) Show that the point (Q1.Qz) is a maximum. (1) Find the maximum profit.

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

There is a monopolist,ConcreteMex,in the concretemarketin Mexico. The demand function is QD= 100–50p. The marginal cost of production isc=0.4. (referencing) Question 1.3 ConcreteMex claimed the high price is due to high transportation costs and persuaded the government to help cut down the costs. As a result, for every unit of concrete sold, the government subsidizes ConcreteMex 0.2dollars. What are the new profit-maximizing price and production levels for ConcreteMex? Under the subsidy policy and the new price in Question 1.3, calculate the consumer surplus, producer surplus, and deadweight loss. You do not need to consider government spending for the deadweight loss.
A monopolist is able to price discriminate in two market segments. The inverse demand curve in segment 1 is P1 = 400 - Q1 and the inverse demand curve in segment 2 is P2 = 300 - Q2. The firm's total cost function is TC = Q^2. How many units will the monopolist sell and at what price in segment 1 and segment 2?
Question d, e and f
Question is in attached image. Thank you! Only answer D,E,F
Suppose the inverse demand function for a monopolist's product is given by P=100-2Q and the cost function isC(Q)=10+2Q. What is the firm's profit-maximizing maximum profits?A. $1,115B. $1,109C. $1,190.5D. $2,100.5
On the market of good Y there are 50 identical consumers. Each consumer has a demand function q=300-2pGood Y is produced by a monopolist, which is operating with a constant marginal cost of 50 and a fixed cost of 2000. Suppose the monopolist implements a two-part tariff pricing strategy. Calculate the maximum profit
The demand for good X is given by x = 586 p-6. The good is sold by a monopolist with cost function C(x ) = 4 x and whose is aim is to maximize profit. The firm charges all customers the same price. If the government imposes a per unit tax equal to 4 dollars on the firm, what price will the monopolist charge consumers?
A monopolist faces an inverse demand curve P(q) = 28 – 3q. The cost curve is C(q) = 10q. What is deadweight loss in this market? (a) DWL = 3 (b) DWL = 27/2 (c) DWL = 19 (d) DWL = 27 (e) None of the above.
(a) A monopolist has discovered that the inverse demand function of a person with income Y for the monopolist’s product is P = 0.002Y-Q where P is the price, Y the income, and Q is the output. The monopolist can observe the incomes of its consumers and hence vary its price accordingly. The monopolist has a total cost function C(Q) = 100Q. Calculate the profit maximising price as a function of the consumer’s income Y carefully explaining all the steps in the derivation of the formula. (b) A monopolist has a constant marginal cost of £2 per unit and no fixed costs. He faces two separate markets in the United States and in the UK. The goods sold in one market are never resold in the other. He sets one price P1 for the US market and another price P2 for the UK market (both measured in £). The demand in the United States is given by Q1=7,000-700P1 and the demand in the UK is given by Q2=1,200-200P1. Calculate the profit maximising output produced and price charged in each country by the…
A monopolist sets the price as a function of the product produced. For every Q of products produced, the selling price is set at (100 – 4Q) $/unit. Fixed costs are $50 and variable costs are set at $2/unit. Assume that all products produced can be sold. If the local government imposes a tax of $2/unit sold, should the company increase or decrease its production? Explain!
Consider a market for cars with just one firm. The firm has a linear cost functionC(q) = 2q. The market inverse demand function is P(Q) = 9 − Q, where Q is thetotal quantity produced. Since initially there is just one firm, q = Q.(a) Set up the maximisation problem for the monopolist and determine the optimalprice and quantity of cars produced. How much profit does the firm make?
A monopolist faces two geographically distinct markets, say market 1 is New York and market2 is California. The inverse demand curves in each market are P1 = 300 – Q1 and P2 = 200 – Q2. Themonopolist’s total cost function is C(Q) = 0.5Q^2 + 50Q and marginal cost function is MC(Q) = Q + 50,where Q = Q1 + Q2 is the total quantity that it produces. Your job is to find out how much quantity to sellin each market in order to maximize profit.a) Carefully express this monopolist’s profit maximization problem.b) State the two equations that characterize the profit-maximizing amounts of Q1 and Q2, given an interiorsolution with positive quantities sold in each market.c) Solve these two equations for Q1* and Q2*.d) Find the prices P1* and P2* that the monopolist should charge in each market.