Suppose a monopolist is characterized as follows: P= 1200-5Q C = 8600 +28Q+Q² MC = 28 +2Q demand curve for the monopolist total cost function for the monopolist marginal cost function for the monopolist To maximize its profit, the monopolist should produce units of output. (Enter your response rounded to two decimal places.) The company's profit-maximizing price is $ (Enter your response rounded to two decimal places.) The monopolist's profit is $ (Enter your response rounded to two decimal places.) Suppose the government imposes a specific tax of $150 per unit on the monopolist. To maximize profit, the monopolist should now produce units of output. (Enter your response rounded to two decimal places.)

Suppose a monopolist is characterized as follows: P= 1200-5Q C = 8600 +28Q+Q² MC = 28 +2Q demand curve for the monopolist total cost function for the monopolist marginal cost function for the monopolist To maximize its profit, the monopolist should produce units of output. (Enter your response rounded to two decimal places.) The company's profit-maximizing price is $ (Enter your response rounded to two decimal places.) The monopolist's profit is $ (Enter your response rounded to two decimal places.) Suppose the government imposes a specific tax of $150 per unit on the monopolist. To maximize profit, the monopolist should now produce units of output. (Enter your response rounded to two decimal places.)

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

Let a firm have a cost function C = 100 +5Q2. (a) If the firm can sell as much product as it wants at a price P = 100, how much will it produce and what will her profit be? (b) If the firm is a monopoly and faces a demand function P = 200 – 5Q. Determine the firm's output, price, and profit. (c) At what level of output is the monopolist's revenue maximized and what is the profit in this production?
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__?
A monopoly sells its good in the U.S. and Japanese markets. The American inverse demand function is Pa = 90 - Qa' and the Japanese inverse demand function is P₁ = 80 - 2Qj, where both prices, På and p₁, are measured in dollars. The firm's marginal cost of production is m = $25 in both countries. If the firm can prevent resales, what price will it charge in both markets? (Hint: The monopoly determines its optimal (monopoly) price in each country separately because customers cannot resell the good.) The equilibrium price in Japan is $ (round your answer to the nearest penny) The equilibrium price in the U.S. is $. (round your answer to the nearest penny)
A monopoly sells its good in the U.S. and Japanese markets. The American inverse demand function is Pa = 120-Q₂. and the Japanese inverse demand function is P₁ = 100-2Q₁ where both prices, p, and p,, are measured in dollars. The firm's marginal cost of production is m = $20 in both countries. If the firm can prevent resales, what price will it charge in both markets? (Hint: The monopoly determines its optimal (monopoly) price in each country separately because customers cannot resell the good.) The equilibrium price in Japan is $. (round your answer to the nearest penny)
The Buy n Large Corporation (BnL) is a monopolist in a market with the demand function:Qd = 320 − 4pBnL’s marginal cost function is:MC = 20/Q + 4and its average total cost function is:ATC = 240/Q + 20 + Q/8 (d) Suppose the government regulates BnL, so that they are forced to lower their price until social welfareis maximized. Determine the regulated price and quantity.(e) Draw a graph showing the demand curve, marginal revenue curve, and marginal cost curve. Label allaxes and curves. Mark out all intercepts, the profit-maximizing price and quantity, and the regulatedprice and quantity.(f) Determine the deadweight loss caused by BnL’s market power. Use your graph to help accomplish this
A monopolist faces two geographically distinct markets, say market 1 is New York and market2 is California. The inverse demand curves in these markets are P1 = 400 – Q1 and P2 = 200 – Q2. Themonopolist’s total cost function is C(Q) = 0.25Q^2 and marginal cost function is MC(Q) = 0.5Q, where Q =Q1 + Q2 is the total quantity that it produces. Your job is to find out how much quantity to sell in eachmarket in order to maximize the monopolist’s 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.e) Calculate the monopolist’s (maximized) profit.
Hand written solutions are strictly prohibited
A firm is a profit-maximizing monopolist in the market of a patented computer software. As an economic analyst,you observe the following data:a) The monopoly’s price is set at $50 per copy.b) The monopoly’s total revenue is $300,000.c) The monopoly’s marginal cost at the profit-maximizing quantity is at $30 per copy.Based on the observed data, please determine the linear inverse demand function.Fill in the blanks. Suppose the inverse demand function is of the formwhere a, b are both positive constants, determine the value for a: 1 and b: 2 .Hint: a should be an integer, the answer for b should round to four decimal places.
A monopolist’s inverse demand function is estimated as P = 450 − 3Q. The company produces outputat two facilities; the marginal cost of producing at Facility 1 is M C1(Q1) = 2Q1, and the marginal costof producing at Facility 2 is M C2(Q2) = 6Q2.(a) Provide the equation for the monopolist’s marginal revenue function.(b) Determine the profit maximizing level of output for each facility.(c) Determine the profit maximizing price.
A profit maximizing monopolist has a cost function C (q) = 2g, where q > 0 denotes the amount produced, and faces the aggregate demand curve q = 100/p² where p > 0 denotes the price per unit in the market. Assume that the monopolist chooses an optimal price in the range [1, 6]. The optimal price the monopolist would set up is while the Lerner index is Blank # 1 Blank # 2
A monopolist is deciding how to allocate output between two geographically separated markets (Market 1 and 2). Demand and marginal revenue for the two markets are:P1 =15-Q1 P2=25-2Q2 The monopolist's total cost is C=5+3(Q1 + Q2) 2.1 Determine the monopolist profit-maximizing price and output in each region. 2.2 What is the total profit that the monopolist will realize for the two regions?