4. A single firm monopolizes the entire market for medicine XYZ. The firm faces a market demand curvegiven by: QD = 40,000 - 40P. Total and marginal cost functions of the monopolist are given by:1,100,000TC(Q) = ²/Q² - 500 Q +603and MC(Q) == Q30-50033a. Derive monopolist's marginal revenue function.b. Calculate monopolist's profit-maximizing output level.c. What price does the monopolist set to maximize its profit?Calculate the profit of the monopolist.d.

Disclaimer: - since you asked multipart question, we are solving only first 3 subparts as per…

A single firm monopolizes the entire market for medicine XYZ. The firm faces a market demand curve given by: Q = 40,000 - 40P. Total and marginal cost functions of the monopolist are given by: 1,100,000 TC(Q) = —Q²-50Q+ and MC(Q) = Q 60 3 a. Derive monopolist's marginal revenue function. b. Calculate monopolist's profit-maximizing output level. c. What price does the monopolist set to maximize its profit? 500 3

A single firm monopolizes the entire market for medicine XYZ. The firm faces a market demand curve given by: Q = 40,000 - 40P. Total and marginal cost functions of the monopolist are given by: 1,100,000 TC(Q) = —Q²-50Q+ and MC(Q) = Q 60 3 a. Derive monopolist's marginal revenue function. b. Calculate monopolist's profit-maximizing output level. c. What price does the monopolist set to maximize its profit? 500 3

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

An amusement park has identified its demand functions as follows: Q = 50-3P The marginal operating cost of each unit of quantity is $5 and there are no fixed costs. The park is a monopolist and exercises significant price making power in the market. 1. If the monopolist charges same price for every unit, for what price are his profits maximized? How many units will be sold at that price? What are his total profits?
Question is in attached image. Thank you! Only answer D,E,F
There are two types of consumers: one half of consumers are type 1 (low type) and the other half are type 2 (high type). Type l's demand curve is q1 = 8 – P, while type 2's demand is given by q2 = 12 – P. Consider a monopolist selling its product to these consumers. Assume that the marginal cost is equal to zero. 1.1. Suppose that the firm can charge only one price, P, for each unit. (1) What is the market demand, Q? (Note: Q should be equal to q1 + q2.) What should be P that maximizes the monopoly's profit? For the profit- (2) maximizing P, will both types of consumers purchase the product, or only high type con- sumers purchase? (3) Given the price in (2), what is the resulting social surplus?
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
d. Suppose the government wants to move this market to the efficient quantity by imposing a per-unit subsidy in this market. Find the dollar amount per unit of output for this subsidy.
A movie monopolist sells to college students and other adults. The demand function for students is Q = 840 - 100P, and the demand function for other adults is Q = 1,600 - 100P. Costs is c(Q) = 12 +0.005Q2m per ticket, where Q=Qs+ QA- Instructions: Round your answers to 2 decimal places. a. What prices will the monopolist set when she can discriminate? Pstudent = $ per ticket. Padult = $ Profit = $ per ticket. b. What if demand for adults increases to Q = 1,800 - 100P? Pstudent = $ Padult = $ Profit = $ per ticket. per ticket. c. When adult demand increases, the adult price: decreases. does not change. increases. d. When adult demand increases, the student price: decreases. increases. does not change.
Answer it correctly please...
Assume a monopolist faces the demand schedule given below and a constant marginal cost of $2 for each unit of output. From the graph, what would the total marginal revenue and total revenue be?How would you get total marginal revenue and total revenue?
Refer to the figure above. The profit-maximizing price for the monopolist is: $7 $8 $6 $5
22
Suppose that a monopolist sells a product to men and women. If the firm sets a single price, the monopolist would produce 100000 units and sell them at a price of $5.00 per unit. Suppose that at that price, the price elasticity of demand for men is -0.75 and the price elasticity of demand for women is -2.50. The monopolist is considering whether he should set discriminatory prices and asks for you're advice. Part 1 Suppose the monopolist is thinking about charging men a %10 higher price. If the monopolist does so, the quantity demanded by men would fall by _______% (give answer to one decimal) Part 2. Suppose the monopolist is thinking about charging women a 10% higher price. If the monopolist does so, the quantity demanded by women would fall by ________% (give answer to one decimal)
The figure at right shows the demand line, marginal revenue line, and cost curves for a single-price monopolist. Now suppose the monopolist is able to charge a different price on each different unit sold. The profit-maximizing quantity for the monopolist is whole number.) (Round your response to the nearest D Price ($) 1000- 900- 800- 700- 600- 500- 400- 300- 200- 100- 0- 0 MC ATC D MR 50 100 150 200 250 300 350 400 450 500 Quantity 17