Consider a monopolist with a cost function given by:c(Q) = 400+10Q + Q²facing a market demand function given by:QD(P) 200-2P=Solve for the monopolist's profit-maximizing quantity sold and their profit-maximizing price.

To find the monopolist's profit-maximizing quantity (Q) and price (P), we need to follow these…

Answered: Consider a monopolist with a cost…

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

A monopolist with cost function C(q) = ;q? faces 2 consumers with the following demands: p(q1) = 10 - q1 and p(q2) = 20 – 2q2. Determine prices, quantities to be produced and sold and the monopolist's profits in the following cases: (a) The good can be resold at zero cost among consumers and it is technologically impossible to sell it in bundles of more than 1 unit. b) There is resale at zero cost and bundling in packages of arbitrary size. c) Resale is possible at a cost of "t" per unit. d) The good is a personal and non-transferable service. e) Repeat the above analysis, but this time assuming that costs are C(q) = q with q < 8.
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?
Assume quantities need not be integers. A monopolist incurs marginal cost equal to MC=Q per unit and faces demand P(Q)=18 – 3 x Q. If there is no fixed cost for production, what is the total cost of production?
Consider a monopoly that faces the demand curve P = 20 − Q, and has the marginal cost curve MC = 2. a) Use the demand curve to find the equation of the marginal revenue curve. b) Find the profit-maximizing price and quantity for this monopoly if the monopoly uses uniform pricing. What is the producer surplus? c) Now, suppose the monopoly wants to increase profits using block pricing. The total cost the monopoly incurs is T C = 2Q. Find the optimal quantities, Q1 and Q2, and their corresponding optimal prices, P1 and P2 that maximize profits using a two-block pricing scheme. What is the new producer surplus? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Assume that a monopolist faces a demand curve for its product given by: p=130−3q Further assume that the firm's cost function is: TC=490+10q What is the profit for the firm at the optimal quantity and price?
Suppose that a monopolist has a patent for widgets and the demand curve is given by Q(P) = 12 – 0.02P. The monopolist’s total costs are TC(Q) = 25Q^2 + 500. You may assume that widgets are continuously divisible, like corn oil or sand. a: Find the quantity Q* that maximizes the monopolist’s profit by exploiting the marginalcondition, necessary for profit maximization at an interior solution. Neatly show your work.b: Find the price P* that the monopolist charges. Neatly show your work.c: Neatly graph the marginal revenue and marginal cost curves, with Q on the horizontal axis.d: Label relevant areas on your graph using a, b, c, etc. and fill in the following chart.
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. 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=1,200-200P2. Calculate the profit maximising output produced and price charged in each country by the price-discriminating monopolist and comment in which country the price charged is higher and by how much. Explain if your answer above is as expected by…
The function Q= 14 - P represent the market demand. The cost function of the monopolist is C= 2Q. a) Find quantity, price and profit of the monopolist. b) Given the results of point (a), what is the firm's percentage mark-up of price over marginal cost? c) Suppose that now we have a market demand with elasticity equal to -2. If the price is 8, what should be the marginal cost of the last unit produced?
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.
Suppose that a monopolist, who sells all units at a uniform price, faces an inverse market demand curve P=100- 2Q. a) If there is no cost of production, what output would the firm produce to maximize profit, what price would the firm charge, and what profit would the firm earn? Give the numerical value of these three variables, showing how you determined them. b) If the firm’s total cost were instead positive, given by the function TC=10Q, what output would the firm produce to maximize profit, what price would the firm charge, and what profit would the firm earn? Give the numerical value of these three variables, showing how you determined them.
Consider the case of a monopolist who charges the same price to all consumers. The demand for the good is given by Q=813-7p, where Q denotes the quantity demanded at price p. The firm's total cost of producing Q units is given by the function C(Q) = 7 Q What is the profit maximizing price for this monopolist? (As usual, you must enter a number below, not a ratio, not an expression with symbols..., just a number.)
Now suppose that the monopolist chooses q to maximise its profit. The number of units that the monopolist would sell is __? The monopolist’s revenue at this profit maximising quantity would be__? The absolute value of the price elasticity of demand at this profit maximising quantity would be__?

SEE MORE QUESTIONS

Recommended textbooks for you

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

Engineering Economy (17th Edition)

Economics

ISBN:

9780134870069

Author:

William G. Sullivan, Elin M. Wicks, C. Patrick Koelling

Publisher:

PEARSON

ENGR.ECONOMIC ANALYSIS

Economics

ISBN:

9780190931919

Author:

NEWNAN

Publisher:

Oxford University Press

Principles of Economics (12th Edition)

Economics

ISBN:

9780134078779

Author:

Karl E. Case, Ray C. Fair, Sharon E. Oster

Publisher:

PEARSON

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)

Economics

ISBN:

9781305585126

Author:

N. Gregory Mankiw

Publisher:

Cengage Learning

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-…

Economics

ISBN:

9781259290619

Author:

Michael Baye, Jeff Prince

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

Consider a monopolist with a cost function given by: c(Q) = 400+10Q + Q² facing a market demand function given by: QD(P) 200-2P = Solve for the monopolist's profit-maximizing quantity sold and their profit- maximizing price.