Currently, a monopolist's profit-maximizing output is 500 units per week and it sells its output at a price of $80 per unit. The firm's total costs are $6,000 per week. The firm is maximizing its profit, and it earns $35 in extra revenue from the sale of the last unit produced each week. Instructions: Enter your answers as whole numbers. a. What are the firm's weekly economic profits? %24 b. What is the firm's marginal cost? c. What is the firm's average total cost? %24

Currently, a monopolist's profit-maximizing output is 500 units per week and it sells its output at a price of $80 per unit. The firm's total costs are $6,000 per week. The firm is maximizing its profit, and it earns $35 in extra revenue from the sale of the last unit produced each week. Instructions: Enter your answers as whole numbers. a. What are the firm's weekly economic profits? %24 b. What is the firm's marginal cost? c. What is the firm's average total cost? %24

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Fill in the values in the Marginal Cost, Total Revenue, and Marginal Revenue columns in the…

A: Monopolistic competition is a form of imperfect competition where, many firms in the market produce…

Q: he following table shows the daily cost data and demand schedule for a typical firm producing board…

A: In a monopolistically competitive firm, there are a large number of firms producing similar but not…

Q: 11. Pr. 9 on p. 388, P & R. A company has a monopoly on a new drug. The drug can be manufactured in…

A: Marginal cost is the additional cost that a firm incurs in producing one more additional unit of a…

Q: You are the manager of a monopoly that sells a product to two groups of consumers in different parts…

A: Lerner index: It states the relationship among price, marginal cost and price elasticity of demand.…

Q: A monopolist is producing at a point at which marginal cost exceeds marginal revenue. How should it…

A: A monopolist is a firm or entity that is the sole seller or provider of a particular product or…

Q: Question 3 Draw the demand, marginal revenue, average total cost, and marginal cost curves for a…

A: The monopoly refers to the market where the single firm exists in the market and it is also a part…

Q: Only one firm produces and sells San Francisco Giants baseball hats in the country of NoDodgers, and…

A: There is a monopoly firm that produces baseball hats. Following are the monopolist's demand,…

Q: Text Problem 24-6 Question Help * Currently, a monopolist's profit-maximizing output is 400 units…

A: The firm's profit is equal to total revenue minus total cost.Total revenue is the price multiplied…

Q: Suppose you operate in a monopoly environment and you set your price in order to achieve maximum…

A: A firm maximizes its profit by setting the quantity that is derived from the intersection of the…

Q: **Now suppose the government imposes a $20 per unit tax on the monopolist. Calculate the…

A: Monopoly is able to generate the highest possible profits because it produces at the point where…

Q: A firm produces two kinds of products: Word and Excel. Both products are made by a monopolist. Four…

A: A la Carte pricing system refers to that system where a consumer has freedom to choose each element…

Q: Which of the following is true of a monopolist firm, but NOT of a monopolistically competitive firm?…

A: When comparing different forms of markets, it is said that monopoly market and monopolistic markets…

Q: Assume that Mattel is a monopolist that sells 8 units of a toy per day at a unit price of $16. If…

Q: A perfectly competitive firm is expected to make a $0 economic profit in the long-run. What type(s)…

A: Perfect competition happens when all companies sell the same things, market share has no influence…

Q: Homework Answered Due Today, 9:35 AM In a monopoly market, the magnitude of demand elasticity at…

A: Price elasticity of demand measures the responsiveness in quantity demanded of a commodity to a…

Q: YOU WILL USE THIS INFO FOR THIS QUESTION AND THE NEXT TWO QUESTIONS. Your firm operates in a…

A: The demand for the product is given as It is assumed that the average total cost equals the marginal…

Q: Consider a monopolist with the following demand curve. Price: 24, 22 ,…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: The graph shows the cost curves, demand curve, and marginal revenue curve of a firm in monopolistic…

A: A monopoly is a market structure characterized by a single dominant seller controlling the supply of…

Q: Suppose that a monopolist faces inverse demand given by P = 100 - 10Q and marginal cost given by MC…

A: A market structure characterized by a single seller or producer dominating the entire market for a…

Q: Sean is a monopolist who operates a business rigging tablets to run twice as fast as the original…

A: Sean Charges $40 for 10 customers Sean Charges $37 for 11 customers

Q: How do perfectly competitive firms, monopolists, monopolistically competitive firms, and cartels…

A: Basics:- Profit maximization condition in all the market types:- Marginal Revenue = Marginal Cost…

Q: 6. A monopolist firm has two long-run choices: producing with short-run cost function C(q) = 30 +…

A: In the short run, if the firm is able to cover its variable cost, the firm will not shut down. In…

Q: Which of the following is true of a monopolist firm, but NOT of a monopolistically competitive firm?…

A: Monopolistic competition describes an industry in which a large number of enterprises compete for…

Q: Suppose a profit-maximizing monopolist is producing 800 units of output and is charging a price of…

A: Monopoly is a market condition with a single seller in the economy. The profit is maximized under…

Q: Which type of a firm, monopolistically competitive or a monopoly, will have a greater incentive to…

A: A monopolistically competitive market comprises of many sellers supplying similar but differentiated…

Q: Consider a monopolistically competitive market with N firms. Each firm’s business opportunities are…

A: The main objective of every firm is to maximize its profits. Profits are maximized when the…

Question

Currently, a monopolist's profit-maximizing output is 500 units per week and it sells its output at a price of $80 per
unit. The firm's total costs are $6,000 per week. The firm is maximizing its profit, and it earns $35 in extra revenue
from the sale of the last unit produced each week.
Instructions: Enter your answers as whole numbers.
a. What are the firm's weekly economic profits?
%24
b. What is the firm's marginal cost?
%24
c. What is the firm's average total cost?
%24

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

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.

Similar questions

A perfectly competitive firm is expected to make a $0 economic profit in the long-run. What type(s) of profit would you expect a monopolist to earn in the long-run? Why the difference? Use the editor to format your answer
The table below shows the marginal revenue and costs for a monopolist. Demand, Costs, and Revenues Price (dollars) Quantity Demanded $85 79 73 67 61 55 50 150 250 350 450 550 Marginal Revenue (dollars) $85 76 64 1. 250; -$3,625 2. 250; $3,625 3. 350; -$3,625 4. 350; $4625 52 40 28 Marginal Cost (dollars) $25 85 64 61 67 77 Average Total Cost (dol $139.00 103.30 87.50 80.00 77.00 77.00 The monopolist's profit-maximizing level of output is...................its and the monopolist's profit at the profit maximizing output is....
Exercise 3.8. Dayna's Doorstops, Inc. (DD) is a monopolist in the doorstop industry. Its cost is C = 100 - 5Q + Q², and demand is P = 55 - 2Q. a) What price should DD set to maximize profit? What output does the firm produce? How much profit and consumer surplus does DD generate? b) What would output be if DD acted like a perfect competitor and set MC = P? What profit and consumer surplus would then be generated? c) What is the deadweight loss from monopoly power in part (a)? d) Suppose the government, concerned about the high price of doorstops, sets a maximum price at $27. How does this affect price, quantity, consumer surplus, and DD's profit? What is the resulting deadweight loss? e) Now suppose the government sets the maximum price at $23. How does this decision affect price, quantity, consumer surplus, DD's profit, and deadweight loss? f) Finally, consider a maximum price of $12. What will this do to quantity, consumer surplus, profit, and deadweight loss?
The diagram above represents a monopolistically competitive firm. Answer the questions below. Is this firm operating in the short-run or long-run? How do you know? Calculate this firm’s accounting profit. From the diagram, what is the productively efficient output for this firm? From the diagram, economies of scale are maximized at which output level? Explain. From the diagram, what is the allocatively efficient output for this firm? Explain.
Consider a monopolistically competitive market with N firms. Each firm's business opportunities are described by the following equations: Demand: Q=100/N-P Marginal Revenue: MR=100/N-2Q Total Cost: TC=50+Q2 Marginal Cost: MC=2Q a. How does N, the number of firms in the market , affect each firms demand curve? Why? b. How many units does each firm produce? (The answer to this and the next two questions depend on N) c. What price does each firm charge? d. How much profit does each firm make? e. In the long run, how many firms will exist in this market?
monopolist’s profit-maximizing output is 500 units per week and it sells its output at a price of $70 per unit. The firm’s total costs are $15,000 per week. The firm is maximizing its profit, and it earns $40 in extra revenue from the sale of the last unit produced each week. a. What are the firm's weekly economic profits?
Suppose a monopolist's profit-maximizing output is 400 units per week and that the firm sells its output at a price of $40 per unit. The firm has total costs of $8,000 per week. Assume the monopolist is maximizing its profit and earns $20 per unit from the sale of the last unit produced each week. Instructions: Enter your answers as a whole number. a. What are the firm's weekly economic profits? b. What is the firm's marginal cost? c. What is the firm's average total cost? A
Use the graph to answer the following 5 questions. A single priced unregulated monopolist faces the demand curve and has the cost curves illustrated in the diagram below. 1. What is the profit Price maximizing quantity of output? 70 a) 25 units. b) 40 units. c) 50 units. d) 60 units. 60 e) 70 units. f) 80 units g) 90 units Marginal Cost 50 2. What price does this monopolist charge? a) $58 b) $20 40 Average Total Cost c) $35 d) $30 e) $45. f) $50 30 g) $40 h) $38 3. What are the total profits? a) $1200 b) $0 c) $1250 d) $200 e) $250. f) $2250. g) $150 h) $1600 20 10 Demand 20 40 60 80 100 120 140 160 Quantity
A monopolistically competitive firm faces the following demand curve for its product: Price ($) 10 6. 8. 17. 6. 3 2 1 Quantity 4 6. 8. 10 12 14 16 18 20 Refer to the Table. The firm has total fixed costs of $20 and a constant marginal cost of $9 per unit. How many units will the firm produce? "Don't leave spaces before, after or in between your number.
QUESTION 1 A. The total cost function for a monopolist is given by TC = 44,000 + 180Q + 0.03Q² and the demand function is P = 420 – 0.06Q per unit of output. i. What is the profit maximising level of output? ii. Calculate the profit maximizing price. iii. Calculate total profit at the profit maximising level of output.
4. A monopolist produces exactly the same product at three plants with respective costs C = Q1 + Qỉ C2 = 3Q2 C3 = 3Q3 – Q3 Ci If the price for the product is P; = 40 – Qi Rị = P;Qi i = 1,2,3 → TR = E{ R{ Find the critical value (Qj, Q2, Q3) of the firm's profit ( = TR – TC) and use the Hessian to determine if it is a relative minimum or maximum.
Suppose a monopolist is currently producing where its variable costs are $1 million. Its fixed costs are $1.5 million. Its revenues are $1.2 million. Should the firm shut down in the short run? Should it leave the industry in the long run? a no; yes b no; no c yes; yes d yes; no