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Give only typing answer with explanation and conclusion    The market demand for a monopoly firm is estimated to be:   Qd = 100,000 - 500P + 2M + 500PR   where Qd is quantity demanded, P is price, M is income, and PR is the price of a related good. The manager has forecasted the values of M and PR will be $50,000 and $20, respectively, in 2016. The average variable cost function is estimated to be   AVC = 520 - 0.03Q + 0.000001Q2   Total fixed cost in 2016 is expected to be $4 million. The profit-maximizing price for 2016 is   $80.   $100.   $260.   $520.   $560.

Give only typing answer with explanation and conclusion    The market demand for a monopoly firm is estimated to be:   Qd = 100,000 - 500P + 2M + 500PR   where Qd is quantity demanded, P is price, M is income, and PR is the price of a related good. The manager has forecasted the values of M and PR will be $50,000 and $20, respectively, in 2016. The average variable cost function is estimated to be   AVC = 520 - 0.03Q + 0.000001Q2   Total fixed cost in 2016 is expected to be $4 million. The profit-maximizing price for 2016 is   $80.   $100.   $260.   $520.   $560.

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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Give only typing answer with explanation and conclusion 

 

The market demand for a monopoly firm is estimated to be:

 

Qd = 100,000 - 500P + 2M + 500PR

 

where Qd is quantity demanded, P is price, M is income, and PR is the price of a related good. The manager has forecasted the values of M and PR will be $50,000 and $20, respectively, in 2016. The average variable cost function is estimated to be

 

AVC = 520 - 0.03Q + 0.000001Q2

 

Total fixed cost in 2016 is expected to be $4 million. The profit-maximizing price for 2016 is

 

$80.

 

$100.

 

$260.

 

$520.

 

$560.

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