The monopolist faces the following demand curve:Price$20Quantity15$19.5016$1917$18.5018$1819$17.5020$1721$16.5022$1623If the monopolist has total fixed costs of $40 and a constant marginal cost of $10, how much profit can the firm earn at the profit-maximizinglevel of output?

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

Answered: The monopolist faces the following…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose a monopolist's total cost function is given by c = 0.004q +30q + 2000, and the revenue function is r = q(1200 - 6q), where c is measured in dollars and q is measured in tonnes per week. a. Determine marginal cost when g = 50. b. Express profit (n) as a function of q. Determine the profit-maximising level of output and the corresponding maximum profit. Justify your answers. C.
A monopolist is able to price discriminate in two market segments. The inverse demand curve in segment 1 is P1 = 400 - Q1 and the inverse demand curve in segment 2 is P2 = 300 - Q2. The firm's total cost function is TC = Q^2. How many units will the monopolist sell and at what price in segment 1 and segment 2?
Consider a monopolist with a total cost function given as C(Q) = 1.5Q2 + 40Q that faces an inverse market demand function P(Q) = 280 − 0.5Q **Calculate the profit-maximizing quantity, price, and economic profits for this monopolist, with the government imposing a $20 per unit tax. Quantity: ? (Round your answer to two decimal places). Price: ? (Round your answer to two decimal places). Economic profits: $ ? (Round your answer to two decimal places).
When Pfizer registers its latest drug patent application, it will have created a monopoly for that product by restricting ____ a)entry into the market. b)amount of product advertising. c)the number of product compliments. d)demand for the product.
Eyeglasslux is a single-price monopolist in the eye-glass frame market. It faces a Market demand given by Q=378-2P. Its Total Cost function is TC=6,422+20Q and Marginal Cost is MC=20. If the government imposes a price ceiling of $27, what is the monopolist's QUANTITY in the SHORT- run?
A movie monopolist sells to college students and other adults. The demand function for students is Q = 840 - 100P, and the demand function for other adults is Q = 1,600 - 100P. Costs is c(Q) = 12 +0.005Q2m per ticket, where Q=Qs+ QA- Instructions: Round your answers to 2 decimal places. a. What prices will the monopolist set when she can discriminate? Pstudent = $ per ticket. Padult = $ Profit = $ per ticket. b. What if demand for adults increases to Q = 1,800 - 100P? Pstudent = $ Padult = $ Profit = $ per ticket. per ticket. c. When adult demand increases, the adult price: decreases. does not change. increases. d. When adult demand increases, the student price: decreases. increases. does not change.
A monopolist is selling a product with a linear demand curve with a vertical intercept of P=10 dollars (a price above which no one will buy the product) and a horizontal intercept of 20 thousand (the amount people would consume of the product were free). The product has zero marginal cost of zero (e.g., downloadable software). The profit-maximizing monopolist will set a price equal to dollars, produce and sell a quantity of thousand units, and will earn revenue of thousand dollars.
Refer to the accompanying table, which represents the costs and production for a monopolist. Price Quantity Fixed Cost Variable Cost $20 0 $10 $0 $18 1 $10 $5 $16 2 $10 $8 $14 3 $10 $18 $12 4 $10 $30 $10 5 $10 $44 1) At Q=2, the marginal cost of this firm is $ ____ 2)The profit made by this profit-maximizing firm is $ __
Alex Potter owns the only well in a town that produces clean drinking water. He faces the following demand P=100-Q, and marginal cost MC=20+2Q, marginal revenue MR= 100-2Q curves. In order to maximize profits, Alex should charge a price of $60 at the profit maximizing quantity with a marginal revenue equal to $60. $60 at the profit maximizing quantity with a marginal revenue equal to $80. $80 at the profit maximizing quantity with a marginal revenue equal to $80. $80 at the profit maximizing quantity with a marginal revenue equal to $60.
Item 7 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.
A different industry has a Demand curve given by Q = 100 p − 1 2 Assume that a monopolist supplies this industry. The cost function of this monopolist is c(Q)=2*Q. What is the price the monopolist charges? What is the quantity the monopolist sells?
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The monopolist faces the following demand curve: Price $20 Quantity 15 $19.50 16 $19 17 $18.50 18 $18 19 $17.50 20 $17 21 $16.50 22 $16 23 If the monopolist has total fixed costs of $40 and a constant marginal cost of $10, how much profit can the firm earn at the profit-maximizing level of output?