The Marvel Superhero franchise has just released its latest movie. As a monopolist for Marvel superhero films it faces the following inverse demanc function P=3300-Q Its cost curve is C(Q)=20+8Q. 1. Calculate Revenue, Marginal Revenue and the profit maximizing quantity? 2. What is the profit maximizing price? (Note: They won't charge you that much when you go to see the movie, even though they could. That's behavioral economics for you...)

The Marvel Superhero franchise has just released its latest movie. As a monopolist for Marvel superhero films it faces the following inverse demanc function P=3300-Q Its cost curve is C(Q)=20+8Q. 1. Calculate Revenue, Marginal Revenue and the profit maximizing quantity? 2. What is the profit maximizing price? (Note: They won't charge you that much when you go to see the movie, even though they could. That's behavioral economics for you...)

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

Suppose a monopoly firm has the following Cost and Demand functions: TC=Q2 P=80-Q MC=2Q MR=80-2Q Carefully explain what the firm is doing and why. Find the firm’s Profit maximizing Q Find the firm’s Profit maximizing P. Find the firm’s Profit. Suppose because of an advertising campaign, which costs $500, the monopoly’s demand curve is: P=100-Q so its MR= 100-2Q. MC=2Q Looking closely at the TC function and the demand curve, explain the effects of the advertising campaign on the equations compared with the equations above in part 1. Find the firm’s Profit maximizing Q Find the firm’s Profit maximizing P. Find the firm’s Profit. Was the advertising campaign successful? Compare 2 w/ 1. Why?
Assume there is no price discrimination: Matthew, Rachel, Janice, and Mandy own the only ice company in town (they have a monopoly on the ice market). Matthew wants to sell as much ice as possible without losing money. Rachel wants the ice company to bring in as much revenue as possible. Janice wants to maximize total surplus and Many wants to make the largest possible profit. Use ONE clearly-labelled graph of the ice company’s marginal revenue, demand, and cost curves to show the price and quantity (i.e., ice) each person desires. Provide explanation.
Consider a firm, Shamrock Ink, that has some monopoly power in the market for green ink pads. The demand for their green ink pads is P = 2500 – 2.5Q with an associated marginal revenue of MR= 2500 – 5Q. Where Q is thousands of ink pads. Their marginal cost of producing green ink pads is MC = 20Q. In order to maximize profit, Shamrock Ink should produce thousand ink pads and charge a price of $ (Round answers to two decimals if necessary.)
A monopolist's inverse demand function is estimated as P= 400 - 2Q. The company produces output at two facilities; the marginal cost of producing at facility 1 is MC₁(Q1) = 7Q₁, and the marginal cost of producing at facility 2 is MC2(Q2)=2Q2- a. Provide the equation for the monopolist's marginal revenue function. (Hint: Recall that Q₁ + Q₂ = Q.) MR(Q) = 400 $ 7Q₁- b. Determine the profit-maximizing level of output for each facility. Instructions: Round your response to two decimal places. Output for facility 1: 14 Output for facility 2: 50 c. Determine the profit-maximizing price. Instructions: Round your response to the nearest penny (two decimal places). 272 x 4 Q2
Graphically show a monopoly firm that currently sells 250 units of output at a price of $60/unit, where the marginal revenue of the 250th unit is $40, the marginal cost of the 250th unit is $50, and the average total cost at 250 units is $60. [Hint: Based on the information given, is the quantity you’re asked to show the profit-maximizing quantity? Think about what has to be true for profit-maximization.] Based on the graph and assuming the firm attempts to profit maximize (and succeeds), what would happen to price, quantity, MR, MC, and ATC? (rise, fall, or stay the same?)
If, in a monopoly market, the demand for a product is p = 195 − 0.10x and the revenue function is R = px, where x is the number of units sold, what price will maximize revenue? (Round your answer to the nearest cent.)
The inverse demand curve a monopoly faces is p=120-2Q. The firm's cost curve is C(Q) = 40 +6Q. What is the profit-maximizing solution? The profit-maximizing quantity is 28.50. (Round your answer to two decimal places.) The profit-maximizing price is $63.00. (round your answer to two decimal places.) What is the firm's economic profit? The firm earns a profit of $ 1584.50. (round your answer to two decimal places.) How does your answer change if C(Q)= 100+6Q? The increase in fixed cost OA. has no effect on the equilibrium quantity, but the equilibrium price increases and profit decreases. B. causes the firm to increase both the price and quantity, and profit increases. OC. has no effect on the equilibrium quantity, but the equilibrium price increases and profit increases. D. has no effect on the equilibrium price and quantity, but profit will decrease.
Determine the profit-maximizing output and price, and discuss its implications, if: You are a monopolistically competitive firm and the inverse demand is P = 100 – Q and your cost is C(Q) = 125 + 4Q2 You are a monopoly and the inverse demand is P = 200 – Q and your cost is C(Q) = 150 + 4Q2
Suppose the inverse demand function for a monopolist's product is given by P=100-20 and the cast function isC(Q)=10+2Q. What is the profit-maximizing price of the firm?
You own a road resurfacing business called Dahyun Bricks services located in Seoul. You are the only reservicing business in South Korea. Therefore, you have a local monopoly. Your experience running the company for many years has taught you that market demand for your service can be described by the demand function: p = 20 - Q. The cost function is c =q². Therefore, marginal cost equals 2q. Quantity refersto square metre of road resurfacing. Note the Q denotes aggregate market demand and q denotes your production. Of course, if you are the only supplier than q = Q. a) Compute profit maximising price and output. Compute profits. b) The monopoly profit that you have been earning has attracted attention from another firm that will set up operations in South Koreaand compete for market share. You are concerned with losing market share and profit. So, you offer the potential entrant the following deal. Both firms agree to maximise industry profits (joint profits). The potential entrant…
Scenario: Suppose that the demand is given by: P = 100 - Q Marginal Revenue is MR = 100 - 2Q and Total Cost function is: TC(Q) = 200 Assume the firm is a price-maker (monopolist). What will be the optimal quantity (Q") under the two-part pricing? (Hint: plug the price into the demand equation)
You are the manager of a monopolistic firm, and your demand and cost functions are given by P = 300 − 3Q and TC(Q) = C(Q) = 1,500 + 2Q2, What is the MR of the firm? What is the MC of the firm? Determine the profit maximizing level of price and output? How much profit will the monopolist make?