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
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![4. A single firm monopolizes the entire market for medicine XYZ. The firm faces a market demand curve
given by: QD = 40,000 - 40P. Total and marginal cost functions of the monopolist are given by:
1,100,000
TC(Q) = ²/Q² - 500 Q +
60
3
and MC(Q) == Q
30
-
500
3
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?
Calculate the profit of the monopolist.
d.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F09d06550-9438-46b0-bfc8-4a273fadb7f3%2F20f495a7-eb4a-44b6-9800-05cfa6db18a3%2Fieau0ww_processed.jpeg&w=3840&q=75)
Transcribed Image Text:4. A single firm monopolizes the entire market for medicine XYZ. The firm faces a market demand curve
given by: QD = 40,000 - 40P. Total and marginal cost functions of the monopolist are given by:
1,100,000
TC(Q) = ²/Q² - 500 Q +
60
3
and MC(Q) == Q
30
-
500
3
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?
Calculate the profit of the monopolist.
d.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education