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- You are the manager of a monopoly, and your analysts have estimated your demand and cost functions as P = 400 - 4Q and C(Q) = 2,000+ 3Q2, respectively, a . What price-quantity combination maximizes your firm's profits? Instructions: Round your response to the nearest penny (two decimal places). Price: $ Quantity: units b. Calculate the maximum profits. Instructions: Round your response to the nearest penny (two decimal places).Please turn in an Excel spreadsheet and show the explication Assume a monopolist with: (a). P = 100 -40Q (b). TC = 50 +20Q Calculate the following at profit max: P, Q, TR, TC, Profit, Take a stab at calculating elasticity at profit max.The inverse demand curve a monopoly faces is p = 130 - Q. The firm's cost curve is C(Q) = 10 +5Q. What is the profit-maximizing solution? The profit-maximizing quantity is (Round your answer to two decimal places.) The profit-maximizing price is $. (round your answer to two decimal places.)
- The monthly demand function for x units of a product sold by a monopoly is p = 6,100 - Find the revenue function, R(x), in dollars. R(x) = Find the cost function, C(x), in dollars. C(x) = Find the profit function, P(x), in dollars. P(x) = Find P'(x). P'(X) = Find the number of units that maximizes profits. (Round your answer to the nearest whole number.) units Find the maximum profit. (Round your answer to the nearest cent.) $ dollars, and its average cost is C = 3,040 + 2x dollars. Production is limited to 100 units. Does the maximum profit result in a profit or loss? O profit O lossGraphically show a monopoly firm that currently sells 250 units of output at a price of $60/unit, where the marginal revenue of the 250th unit is $40, the marginal cost of the 250th unit is $50, and the average total cost at 250 units is $60. [Hint: Based on the information given, is the quantity you’re asked to show the profit-maximizing quantity? Think about what has to be true for profit-maximization.] Based on the graph and assuming the firm attempts to profit maximize (and succeeds), what would happen to price, quantity, MR, MC, and ATC? (rise, fall, or stay the same?)Hawkins Micro Brewery has a monopoly on Oatmeal stout in the local market. The inverse demand is P=50-5Q. The marginal revenue is MR=50-1Q. MC=5+5Q Calculate Hawkins profit-maximizing output. Calculate the producer surplus. Calculate the deadweight loss. Suppose the local government wants to impose a price ceiling. What is the optimal price ceiling? If Hawkins was able to practice perfect price discrimination what price would it charge? What is the new producer surplus?
- The inverse demand curve a monopoly faces is p = 130 - Q. The firm's cost curve is C(Q) = 10 +5Q. What is the profit-maximizing solution? The profit-maximizing quantity is 62.5. (Round your answer to two decimal places.) The profit-maximizing price is $ 67.5. (round your answer to two decimal places.) What is the firm's economic profit? The firm earns a profit of $. (round your answer to two decimal places.)Suppose a monopoly is producing at its profit-maximising (loss-minimizing) quantity, and the price corresponding to this quantity is below average total cost but above average variable cost. The monopoly will shut down in the short run but return to production in the long run shut down in the short run and exit the market in the long run keep producing both in the short run and in the long run keep producing in the short run but exit the market in the long run None of the above.You are the manager of a monopoly, and your analysts have estimated your demand and cost functions as P = 300-2Q and C(Q) = 1,500 + 2Q2, respectively. a. What price-quantity combination maximizes your firm's profits? Instructions: Round your response to the nearest penny (two decimal places). Price: $ Quantity: units b. Calculate the maximum profits. Instructions: Round your response to the nearest penny (two decimal places). $ c. Is demand elastic, inelastic, or unit elastic at the profit - maximizing price-quantity combination? multiple choice 1 Unit elastic Elastic Inelastic d. What price- quantity combination maximizes revenue? Instructions: Round your response to the nearest penny (two decimal places). Price: $ Quantity: units e. Calculate the maximum revenues. Instructions: Round your response to the nearest penny (two decimal places). $ f. Is demand elastic, inelastic, or unit elastic at the revenue - maximizing price-quantity combination? multiple choice 2 Unit elastic Elastic…
- Consider a monopoly market in which the initial price is $40K, the initial quantity is 20, and the elasticity of demand is -2.5. A government program directly supplies an additional 4 units at the market price. For example, this is surplus equipment being auctioned to the highest bidder. a) Estimate MC. Thereafter assume it is constant. b) Use the initial equilibrium and the elasticity of demand to approximate the initial demand curve. c) Approximate the monopolist’s demand after the program provides 4 units. d) Estimate the new price, the new quantity provided by the monopolist, and the new quantity consumed by customers. e) Sketch the situation. f) Estimate the impact on CS, PS, GS, and SS assuming the METB is 0.25.If the inverse demand curve a monopoly faces is p = 100 - 2Q, MC is constant at 16, and the government imposes an $8 per unit specific tax on the monopoly, the deadweight loss due to both the monopoly and the tax is A) $441. B) $1764. C) $1332. D) $529.Suppose you are a monopolist in the market for a specific Q video game. Your demand curve is given by P = 80- - and 2 your marginal cost curve is MC = Q. Your fixed cost is $400. i) Derive the marginal revenue curve. ii) Calculate the equilibrium price and quantity. iii) What is the profit?