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All 100 consumers are alike and each has a demand curve for a monopolist's product of q= 5-0.5p. The cost of production C(Q) =500+0.5Q. Let the monopolist charge a price of $r per unit purchased and a subscription fee of $F that must be paid by each purchaser. Find the r and F that maximize profits?

All 100 consumers are alike and each has a demand curve for a monopolist's product of q= 5-0.5p. The cost of production C(Q) =500+0.5Q. Let the monopolist charge a price of $r per unit purchased and a subscription fee of $F that must be paid by each purchaser. Find the r and F that maximize profits?

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Please answer questions 4 through 7.
What is the maximum profit the monopolist can earn in this market? (pi) Select one: O a. pi<1,000 O b. 1000≤pi<2000 O c. 2000spi<3000 O d. 3000 pi<5000 O e. None of the above consumer surplus will be ? Select one: O a. 0 Ob. 20 O c. 45 O d. 50 O e. 60
Transcribed Image Text:What is the maximum profit the monopolist can earn in this market? (pi) Select one: O a. pi<1,000 O b. 1000≤pi<2000 O c. 2000spi<3000 O d. 3000 pi<5000 O e. None of the above consumer surplus will be ? Select one: O a. 0 Ob. 20 O c. 45 O d. 50 O e. 60
Use the following to answer questions 4-7: All 100 consumers are alike and each has a demand curve for a monopolist's product of q= 5-0.5p. The cost of production C(Q) =500+0.5Q. Let the monopolist charge a price of $r per unit purchased and a subscription fee of $F that must be paid by each purchaser. Find the r and F that maximize profits? What is r? Select one: OA. r<1 О в. 1sr<10 OC. 10sr<100 OD. 100sr<1000 OE. None of the above What is F? Select one: O a. F<10 O b. 10≤F<20 O c. 20≤F<30 O d. 30sF <40 of the above
Transcribed Image Text:Use the following to answer questions 4-7: All 100 consumers are alike and each has a demand curve for a monopolist's product of q= 5-0.5p. The cost of production C(Q) =500+0.5Q. Let the monopolist charge a price of $r per unit purchased and a subscription fee of $F that must be paid by each purchaser. Find the r and F that maximize profits? What is r? Select one: OA. r<1 О в. 1sr<10 OC. 10sr<100 OD. 100sr<1000 OE. None of the above What is F? Select one: O a. F<10 O b. 10≤F<20 O c. 20≤F<30 O d. 30sF <40 of the above
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