Suppose that the demand for a special kind of silica is given by Q = 55 – 0.5P, where Q is in tons of silica per day and P is the price per ton. This special kind of silica is produced by Thorpe Industries (a monopolist) that has a constant marginal and average total cost of $10 per ton. [up to 6 points] a. Derive the inverse demand and marginal revenue curves faced by Thorpe Industries. b. Equate marginal cost and marginal revenue to determine the profit-maximizing level of output. c. Find the profit maximizing price for Thorpe Industries. d. How would your answer change if marginal cost were instead given by MC = 10+Q?

Q: 1. The (inverse) demand curve for the services of Oakland Pest Control Co. (OPCC) is given by P=…

A: The inverse demand of the OPCC is P=$1000−2QCost equation: C=2000+30QHere Q is the residences per…

Q: Suppose the long-run marginal cost for a firm is given by MC= x^2 - 2x+5 , where x is the quantity…

A: The major difference between monopoly and perfect competition is the number of firms. There is only…

Q: A company can sell its product in two separate market defined by the following inverse demand…

A: The elasticity of demand is the reaction of demand due to change in price of goods and services,…

Q: Mr. X and Ms. Y have entered into the following contractual arrangement with D. M. Kreps. Between…

A: In the realm of game theory, Cournot equilibrium denotes a particular form of Nash equilibrium…

Q: Serena is profit-maximizing monopolist selling of her own patented perfume, whose demand and…

A: In economics, a monopoly is a market structure characterized by the presence of a single seller (or…

Q: Assume that the marginal cost curve is given by mc(q) = 10+ 2q. The demand is equal to qd = 130 – p…

A: MC = 10 + 2q Q = 130 - p  MR = 130 -2q ATC = 10 + 100/q + q

Q: 1. Assume a total cost function c(q) = 750 + 5q. The inverse demand function that the firm %3! faces…

A: A monopoly is a sole producer of a good in the market thus acting as a price maker whereas in a…

Q: For a manufacturer of cameras and film, the total cost c of producing qc cameras and q units of film…

A: A firm has to forgo an amount of money in the form of costs, during the production or delivery of a…

Q: 5. Suppose a company has a monopoly on a game called Monopoly and faces a demand curve given by QT =…

A: Given:Demand: Qt = 100 - PMR = 100 - 2QtQt = q1 + q2MC1 = q1 -5MC2 = 0.5q2 - 5  Remember that a…

Q: ermine your optimal per unit price if: ructions: Enter your responses rounded to two decimal places.…

A: Monopolistic competition is type  of an industry in which many firms offer goods or services that…

Q: Suppose that a firm is an imperfect competitor in the product market and a perfect competitor in the…

A: The purpose of this question is to determining the optimal combination of two variable inputs. This…

Q: . Assume that the marginal cost curve is given by mc(q) = 5+ 2q. The demand is equal to %3D qd = 100…

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

Q: (Scenario: A Monopolist) A home monopolist faces a demand curve given by P- 20 - Q and has total…

A: Given:MR=20-2QMC=2QP=20-2Q

Q: Only need the graphs 3) A monopolist sells a product in two separate markets at different prices;…

A: QA = 22.5 units QB = 5 units Profit = $905 ATC* = 31.14

Q: a. What is the Marginal Revenue function in this market? b. If there was only one coffee firm in…

A: The equilibrium price is the cost where the amount given is the same as the amount wanted, creating…

Q: 7. :Monopoly with a competitive fringe Precious Metals Inc. (PMI) is a near-monopoly supplier of…

A: Total Demand function : P = 400 - 2Q  MR1 of PMI without Competition = 400 - 4Q  MR 2of PMI with…

Q: a. What are the profit-maximizing prices and quantities for the New York and Los Angeles markets?…

A: For profit maximisations, the firms aim to maximise the profits, which are calculated by subtracting…

Q: 3) Suppose a monopolist produces a product in two factories. Demand for the product is given by the…

A: Given; Demand function; P=200-QT  QT=QA+QB where:- QT is quantity sold.  P is selling price. Total…

Q: 2 Double marginalization AlphaGas is a monopoly retail station that charges a per-gallon price of P…

A: It is a kind of vertical externality. When two firms, both belonging to the same supply chain, apply…

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: Presently, APlus Transport and Big Movers are the only suppliers of services that haul heavy…

A: Cournot equilibrium is a concept in economics that describes a situation in which two or more firms…

Q: 1. Serena is profit-maximizing monopolist selling of her own patented perfume, whose demand and…

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

Q: 1. A company manufactures and sells x television sets per month. The monthly cost and price-demand…

A: The revenue is equal to the price multiply the quantity demanded so the revenue function is Rx=Px×x…

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: 25-28. A monopolist has a short run cost function given by: TC = 0.1q² +3q + 40 q≥2 where q is…

A: Q.NO.27. How much of the $5 per unit tax will be borne by the monopolist (i.e., what will be the…

Q: The cost function for producing ethanol from municipal waste​ (wastehol) is 1000+10q2 where q is in​…

A: Given  The cost function for producing ethanol from municipal waste​ (wastehol) is 1000+10q2 where q…

Q: 2. Suppose the home country open up to free trade and a foreign competitor enters the market. Assume…

A: Cournot duopoly is a type of oligopoly market, where there are two firms, which compete in quantity.…