Suppose a monopolist's profit-maximizing output is 200 units per week and that the firm sells its output at a price of $60 per unit. The firm has total costs of $9,000rper week. Assume the monopolist is maximizing its profit and earns $30 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? $4 b. What is the firm's marginal cost? $4 c. What is the firm's average total cost? %24

Suppose a monopolist's profit-maximizing output is 200 units per week and that the firm sells its output at a price of $60 per unit. The firm has total costs of $9,000rper week. Assume the monopolist is maximizing its profit and earns $30 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? $4 b. What is the firm's marginal cost? $4 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: None

A: Given:Constant marginal cost MCAbsolute value of price elasticity of demand ∣ϵ∣=3Quantity tax t=6…

Q: Suppose that the picture below shows market demand and costs for a monopolist. price 9 8 7.00 6.50…

A: In a monopoly market structure, There exists a single seller. There exists high barriers to entry…

Q: Suppose a monopolist's profit-maximizing output is 200 units per week and that the firm sells its…

A: The profit maximization for a monopolist will occurs when monopolistic firms equate marginal revenue…

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

A: Marginal revenue(MR) is the change in the Total Revenue(TR) on account of the sale of and additional…

Q: A monopolist faces the demand curve P= 11 - Q, where Pis measured in dollars per unit and Q in…

A: A monopoly is a market structure in which a single seller or producer dominates the entire supply of…

Q: If a monopolist's marginal revenue is $3.00 and its marginal cost is $4.00, it will increase its…

A: The question is asking about the profit-maximizing behavior of a monopolist when the marginal cost…

Q: None

A: Total Revenue. Marginal Revenue 0. -45.…

Q: A monopolist has an inverse demand curve given by p(y) =12 − y and a cost curve given by c(y) = 3y.…

A: 1. Marginal Revenue (MR):Marginal Revenue is the derivative of the total revenue function with…

Q: A monopolist faces a demand equation given by P=20−Q�=20−�, a marginal revenue equation given by…

A: The objective of the question is to find the profit-maximizing price set by a monopolist. The…

Q: Suppose both a monopolist and a perfectly competitive firm charge a price corresponding to the…

A: The question is based on the shutdown rule.

Q: Currently, a monopolist's profit-maximizing output is 500 units per week and it sells its output at…

A: Total revenue (TR): - it is the total amount that a seller receives selling his goods and services…

Q: Consider the following table, which provides price, revenue, and cost information for a monopolist.…

A: A monopoly occurs when a single seller dominates the entire market for a specific service or item.…

Q: Suppose the demand curve for a monopolist is QD = 400 - P, and the marginal revenue function is MR =…

A: Answer to the question is as follows:

Q: A monopolist has two sets of customers. The inverse demand for Group 1 is described by P=200-X. For…

A: Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: At the profit maximizing output, for the monopolist, options: price is greater than marginal…

A: Monipolist is a single seller in the market selling unique good.

Q: When a monopolist produces 3030 units, total cost of production is $300$⁢300. When a monopolist…

A: Marginal Cost is the cost of producing an additional unit of product and service. It is change in…

Q: A monopolist faces the following market demand, total cost, and marginal cost: Market Demand: P =…

A: Monopoly is a form of imperfect competition. There is one firm. The number of consumers is high.…

Q: Consider the graph above. If the demand curve intersects the marginal & average cost curve at…

A: Consider the following figure: Profit maximization under monopoly occurs when a firm produces at a…

Q: Use the following words to fill in the blanks: price, price, economic profit, marginal benefit,…

A: In a perfectly competitive market, the prices are determined by the market forces of demand and…

Q: A monopolist is producing at a quantity of 13,678 units where the marginal revenue of the last unit…

A: Here, it is given that a monopolist is able to sell 13,678 units with MR from last unit as $2,386…

Q: When price is equal to 270, a monopolist can sell 10 units of output, and when price is equal to…

A: When price(P) is 270 and quantity(Q) is 10 then Total Revenue ( TR)= P ×Q = 270 ×10 =2700

Q: outline the monopolist profit rectangle. on the graph, label the price the monopolist will charge,…

A: The profit can be calculated by using the following formula:

Q: The monopolist faces the following demand curve: Price $20 Quantity 15 $19.50 16 $19 17 $18.50 18…

A: To determine the profit-maximizing output level for the monopolist, we need to follow these…

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: Currently, a monopolist's profit-maximizing output is 200 units per week. It sells its output at a…

A: here we solve the following as follow-

Q: Give typing answer with explanation and conclusion A monopolist has a demand curve given by P = 88…

A: Monopolist: A monopolist is a single seller in the market and hence he faces the downward sloping…

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: A monopolist faces a demand curve, Q=100-2P and has a constant marginal cost of 10. It has no fixed…

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

Question

Suppose a monopolist's profit maximizing output is 200 units per week and that the firm sells its output at a price of $60 per unit. the firm has total cost of $9000 per week assume the monopolist is maximizing its profit and earns $30 per unit from the sale of the last unit produced each week.

a. What Are the firms weekly economic profits?

b. What is the firms marginal cost?

c. What is the firms average total cost?

Suppose a monopolist’s profit-maximizing output is 200 units per week and that the firm sells its output at a price of $60 per unit. The firm has total costs of $9,000 per week. Assume the monopolist is maximizing its profit and earns $30 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?
- $ [ ]

Definition Definition Total cost of producing a certain quantity of a good, divided by the quantity produced. It is the sum of all costs (fixed and variable) required to produce one unit of output.

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

Step 5

Trending now

This is a popular solution!

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

**YOU ONLY HAVE TO ANSWER QUESTION H**
A monopolist serves a market with five potential buyers, each of whom would buy at most one piece of the monopolist's good. Anna would be willing to pay up to £80 for it, Bob up to £90, Chloe up to £100, Dave up to £110 and Elizabeth up to £120. The monopolist's variable cost function is given in below table. Quantity Variable Costs 1 3. 4. 40 90 150 220 300 Price Marg. Revenue a) Indicate in the table which price the monopolist would want to charge for each given quantity. b) Find the marginal revenue for each quantity. c) Find the monopolist's profit maximising price under the assumption that he wants to produce anything at all. d) How large can the monopolist's fixed costs be such that he still wants to start producing at 1. D Focus 9°C Sun
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
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.
The data below relate to a monopolist and the product it produces. If the firm wants to produce where marginal revenue equals marginal cost, what is the firm's profit? Quantity Price per Unit Total Cost 0 $22 $20 1 $20 $24 2 $18 $27 3 $15 $32 4 $14 $40 5 $12 $49 6 $10 $59
Suppose that the monopolist's demand is: P = 8 – Q, and marginal revenue is: MR = 8 – 2Q. - The marginal cost is: MC = 2, and there is no fixed cost. a.Find out the profit maximizing output level. b.Specify the amount of economic profit or loss at the profit maximizing output. c.Calculate the price elasticity of demand at the profit maximizing point and explain it.
Draw a graph with linear demand and marginal curves and a horizontal MC curve. Find the monopolist’s profit-maximizing price (P*) and output (Q*). Now change the demand curve by rotating it clockwise (making it steeper) through the point (Q*, P*). What is the new profit-maximizing price and quantity? Is price higher or lower? Relate your answer to the fact that a monopolist does not have a supply curve
The diagram below shows a monopolist’s marginal cost scheduleand the demand curve. Find and depict the following items within the diagram and briefly explainhow you found them: a) The efficient (i.e., total surplus maximising) quantity. b) The monopolist’s profit maximising quantity. c) The monopolist’s profit maximising price. d) The monopolist’s optimal profit. e) The deadweight loss.
Refer to the figure above. The profit-maximizing price for the monopolist is: $7 $8 $6 $5
The demand (downward sloping line) and marginal cost (upward sloping curve) of a monopolist are shown. Use the segment tool to add a marginal revenue curve to the graph. Then, use the point tool to indicate the monopolists profit maximizing price/quantity combination. Segment Point A Undo - Redo x Reset 10 10 quantity Price