Quantity a. Suppose this monopolist is unregulated. (1) What price will the firm charge to maximize its profits? Instructions: Enter your response as a whole dollar value. 140 (2) What is the level of consumer surplus at this price? Instructions: Enter your response rounded to the nearest penny (two decimal places). 10 b. Suppose the firm's price is regulated at $80. (1) What is the firm's marginal revenue if it produces 7 units? Instructions: Enter your response as a whole dollar value. (2) If the firm is able to cover its variable costs at the regulated price, how much output will the firm produce in the short run to maximize its profits? units (3) In the long run, how much output will this firm produce if the price remains regulated at $80? units

Quantity a. Suppose this monopolist is unregulated. (1) What price will the firm charge to maximize its profits? Instructions: Enter your response as a whole dollar value. 140 (2) What is the level of consumer surplus at this price? Instructions: Enter your response rounded to the nearest penny (two decimal places). 10 b. Suppose the firm's price is regulated at $80. (1) What is the firm's marginal revenue if it produces 7 units? Instructions: Enter your response as a whole dollar value. (2) If the firm is able to cover its variable costs at the regulated price, how much output will the firm produce in the short run to maximize its profits? units (3) In the long run, how much output will this firm produce if the price remains regulated at $80? units

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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