Suppose that single-price, single-product and single-plant monopolist faces the following demand curve: Q = 3000 – 20P. The monopolist's fixed cost of production is $5,000 and its average variable cost is 0.2Q. Find the profit of the monopolist. $12,000 O $15,000 O $21,960 $17,500

Suppose that single-price, single-product and single-plant monopolist faces the following demand curve: Q = 3000 – 20P. The monopolist's fixed cost of production is $5,000 and its average variable cost is 0.2Q. Find the profit of the monopolist. $12,000 O $15,000 O $21,960 $17,500

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: If the profit-maximizing pure monopolist whose information is in the accompanying table is able to…

A: One seller or manufacturer controls the entire market in a monopoly. In a monopoly, the supply and…

Q: 2) If a monopolist faces a constant marginal cost of $5 and a constant elasticity of demand of -2,…

A: In a monopoly, demand and marginal revenue are downward sloping and marginal revenue lies below the…

Q: Suppose that single-price, single-product and single-plant monopolist faces the following demand…

A: In a monopoly, Marginal revenue lies below the demand curve. The firm has to lower the price in…

Q: Assume the only costs to the firm are marginal costs (so MC-ATC in this case) and that the firm/s…

A: Monopoly maximizes profit by producing at a point where marginal revenue is equal to marginal cost…

Q: Suppose that single-price, single-product and single-plant monopolist faces the following demand…

A: In a monopoly, profit is maximised at a point where marginal revenue is equal to marginal cost and…

Q: Bonus: A monopolist sells output at zero cost to two types of consumers, H and L, whose inverse…

A: The demand curve shows the inverse relationship between price and quantity demanded. The demand…

Q: The change in total revenue that results from a one-unit increase in quantity sold is marginal…

A: Monopoly refers to a situation in which there is a single seller of a product and many buyers of…

Q: A monopolist is selling in a market with two types of consumers, type H and type L. There are 30…

A: Monopoly is a form of market in which there exists single seller and large number of buyers. In this…

Q: 4. For a monopolist with marginal cost of c, where c> 0, facing a market demand of X(p) = a – bp,…

A: Block rate tariff In this type of tariff different blocks are given according to the energy…

Q: swer: Question 13 exercise before) a market where the consumer demand is given by P-100-10 vith no…

A: For finding the monopolistic equilibrium quantity we need to put MR = MC. MR is Marginal Revenue MR…

Q: If a monopolist faces a constant-elasticity demand curve given by Q = 202,500P and has total costs…

A: Demand curve faced by monopoly: Total cost: TC=10QThe monopoly firm has the ability to set its own…

Q: Suppose that a monopolist sells both hamburgers and french fries. There are two types of customers…

A: A monopolist is an entity or company that possesses a monopoly, which is a market shape the place a…

Q: If a monopolist faces a constant-elasticity demand curve given by Q = 202,500 P-3 and has total…

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

Q: The graph shows the cost and revenue curves for a profit-maximizing mm. Which of the following is…

A: Business economics requires making decisions and allocating resources in complex market scenarios.…

Q: A monopolist produces a homogeneous good in two factories, each with its own distinct marginal cost…

A: The demand function is the mathematical relationship between the quantity of a commodity demanded…

Q: From society's point of view, a monopolist does not meet allocative efficiency because price: O is…

A: Allocational efficiency, also known as allocative efficiency, is a feature of a well-functioning…

Q: Suppose that single-price, single-product and single-plant monopolist faces the following demand…

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

Q: Which of the following is a characteristic of a monopolist firm but not of a perfectly competitive…

A: Monopoly is a market structure where one company dominates, controlling the supply of a product or…

Q: Suppose a single-price monopolist decides to switch to second degree price discrimination. It sells…

A: Consumer surplus, when a single price taken is where MR=MC nad that equilibrium quantity is being…

Q: In general, a monopolist is likely to: earn lower profits than a perfectly competitive firm. earn…

A: Perfectly competitive market: - it is a market condition where there are many buyers and many…

Q: Suppose that single-price, single-product and single-plant monopolist faces the following demand…

A: Monopoly refers to a market where only one firm exists in the market. The monopoly firm is price…

Q: Monopolists, like firms in other market structure, strive to maximize profit. Microsoft when it…

A: Given: Marginal cost =$3.50 Marginal revenue =$2.75

Q: Demand Data Price 5.00 4.50 4.00 3.50 3.00 8 units 7 units O6 units Quantity Demanded 4 5 O 5 units…

A: Find the point where the monopolist's marginal revenue (MR) curve intersects its marginal cost (MC)…

Q: What is the marginal revenue associated with the sale of the fifth unit? $2 -$2 $10 -$10

A: Revenue is the term used to describe the money that a business makes by selling a specific amount of…

Q: A monopolist can produce at constant average and marginal costs of AC = MC = 5. The firm faces a…

A: Q= 53-PWhen Q=0, Pm= 53MR= 53-2QAC=MC= 5

Q: Suppose the inverse demand function and cost function for a monopolist's product are given by: P =…

A: The highest level of total revenue is reached when the marginal revenue becomes zero. Marginal…

Q: A monopolist will maximize profits by: Group of answer choices setting his price at the level that…

A: Perfectly competitive firm. A perfectly competitive firm is a price taker, which means it takes the…

Q: Profit maximization and loss minimization BYOB is a monopolist in beer production and distribution…

A: BYOB is a monopolist in beer production. Let BYOB cannot discriminate price and sell beer to all…

Q: Suppose the table below describes the relationship between price and quantity demanded for a…

A: GIVEN: or marginal costPROBLEM:Find the cost per unit that will help maximize profits.

Q: The accompanying graph depicts the marginal revenue (MR), demand (D), and marginal cost (MC) curves…

A: Monopoly Market:Monopoly market is a market condition where single firm reaping largest market share…

Q: A monopolist faces the demand curve illustrated below. 12 11 9. 10 11 12 13 11 15 16 17 18 19 20 21…

Q: 8. Suppose a multiproduct monopolist faces the following demand functions: P₁ = 55-Y₁-Y₂ P₂ =…

Q: In Figure#2, the profit-maximizing condition of a monopolist is to produce following units of output…

A: The monopoly market only has one seller with a unique product. As being the sole seller, there is no…

Q: Suppose that the perfectly competitive soybean industry in the United States is monopolized. Under…

A: Consumer surplus is the area below the demand curve and above price. In perfect competition, the…

Q: A movie monopolist sells to students and adults. The demand function for students is Qds = 600 100P…

A: Price discrimination is a selling procedure that charges clients various costs for a similar item or…

Q: Question 9 TC $13 $12 $1 $10 $9 $8 10 $15 14 $25 19 $45 $75 $115 25 30 35 $165

A: For a monopolist, profit is maximized when the marginal revenue is equal to marginal cost. Total…

Q: The figure shows the demand curve faced by a monopolist. What is the price effect of a price…

A: The price effect refers to the change in quantity demanded of a commodity due to a change in its…

Question

Suppose that single-price, single-product and single-plant monopolist faces the
following demand curve: Q = 3000 – 20P. The monopolist's fixed cost of production is
$5,000 and its average variable cost is 0.2Q. Find the profit of the monopolist.
$12,000
$15,000
$21,960
O $17,500

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 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 monopolist with constant marginal cost c and a linear market demand given by Q(p) = A - bp, charges a price of $10 when c = $5. When c decreases to c = $4, the monopolist's price will O not change O decrease by less than $1 O decrease by $1 O decrease by more than $1 O depending on the demand elasticity any of the above is possible
5. Tom is a monopolist input supplier to Dick and Harry. Tom's marginal cost is 1. Dick and Harry are duopolists with production function q x/2 No firm has fixed costs. The demand for the final product is given by Q 100-p. a) Assume Dick and Harry buy the input from Tom at price k. What are their cost functions? b) Find the Cournot equilibrium quantities. c) What price, k, should Tom set? d) Now suppose Dick could buy Tom's firm and stop supplies of the input to Harry so that Dick would be a monopolist. How much is Dick willing to pay for Tom's firm? e) How much is Tom willing to sell his firm for?
Assuming that the price is greater than the average variable cost, a monopolist maximizes profits at the output for which (picture a graph): O price is equal to marginal revenue in the downward part of the marginal cost curve O marginal cost is equal to marginal revenue in the upward sloping part of the marginal cost curve O average variable cost and average total cost are in the downward part of their curves and price is equal to marginal cost O average total cost is at the lowest point
Exhibit 10-4 $/0 MC ATC 24 /t 10 The non-discriminating monopolist in Exhibit 10-4 should: O Produce 10 units at a price of $36 per unit. O Produce 10 units at a price of $24 per unit. O Produce 10 units at a price of $40 per unit. O Produce 15 units at a price of $32 per unit. O We cannot determine what the firm should do without knowing its average variable cost.
Q20 With regard to price discrimination, we can generally say that a monopolist practicing perfect price discrimination _____ a single-price monopolist in the same market. a. Produces the same output level and charges the same price as. b. Produces a lower level of output compared to. c. Generates more consumer surplus than. d. Generates a more efficient outcome for society as a whole compared to. e. Has the same effects on consumer welfare as.
A single price monopolist sets a price of $50 per unit for an item that has a marginal cost of $10. Assuming profit maximization, the demand elasticity is: * O -0.8. O -1.25. О 5.0. O -0.2.
If the monopolist shown in the following figure could practice first-degree price discrimination, the consumer surplus would be: Price (dollars) 50 40 30 20 10 0 O $450.00 $900.00 $0.00 $225.00 O $1,200.00 30 50 60 MR 100 MC Quantity
Assume that a pure monopolist and a purely competitive firm have the same unit costs. Contrast the two with respect to (a) price, (b) output, (c) profifits, (d) allocation of resources, and ( e) impact on the distribution of income. Since both monopolists and competitive fifirms follow the MC = MR rule in maximizing profifi ts, how do you account for the different results? Why might the costs of a purely competitive firm and those of a monopolist be different? What are the implications of such a cost difference?
Please provide answer with method and explanantion
QUESTION 23 If the monopolist shown in the following figure could practice first-degree price discrimination, the producer surplus would be: Price (dollars) 50 40 30 20 10 $0. $225. $450. $900. O $1,200. 30 50 60 MR 100 MC Quantity
Market Demand is given in the table below. By now, I should not have to say, only integer quantities are allowed when we have discrete data like this. The only producer in the market is a monopolist who can do perfect price discrimination. The fırm's constant Marginal Cost is $33. What is Producer Surplus? Enter a number only, no $ sign. MWTP $70 $58 $41 $24 1 13 234 5
Market Demand is given in the table below. By now, I should not have to say, only integer quantities are allowed when we have discrete data like this. The only producer in the market is a monopolist who can do perfect price discrimination. The firm's constant Marginal Cost is $29. What is Producer Surplus? Enter a number only, no $ sign. Q MWTP 1 $66 2 $50 3 $40 4 $24 5 13