EBK PRINCIPLES OF MICROECONOMICS (SECON
2nd Edition
ISBN: 9780393616149
Author: Mateer
Publisher: W.W.NORTON+CO. (CC)
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Chapter 10, Problem 3SP
To determine
Identify the profit maximizing output of
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A monopolist has a demand curve that is described as P = 20 – 2Q and a constant marginal cost that is equal to $10. What is the marginal revenue of this monopolist?
Will the monopolist produce an output level that is technically efficient?
A monopolist faces the demand curve Q = 144 / P2, where Q is the quantity demanded and P is price. Its average variable cost is AVC = Q1/2 and its fixed cost is 20.
What is the monopolist's profit-maximizing quantity, price, and profit?
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EBK PRINCIPLES OF MICROECONOMICS (SECON
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- A Monopolist has the following demand, marginal revenue, and marginal cost: p = 100 – 5q mr = 100 – 25q mc = 25 How much higher will the monopoly price be than the perfectly competitive price?arrow_forwardA monopolist has a cost function given by c(y)=y2 and faces a demand curve given by P(y)=120-y. What is the profit maximizing level of output?arrow_forwardA monopolist operates in an industry where the demand curve is given by Q = 1000 - 20P. The monopolist’s constant marginal cost is $8. What is the monopolist’s profit-maximizing price?arrow_forward
- If the monopolist facing the demand curve P = 20 - Q is a perfectly discriminating monopolist and marginal cost is constant at $4, how much will the firm sell if it profit maximizes?arrow_forwardA monopolist faces the demand curve given by Q=20-0.2P, where Q is the output and P is the price. If the monopolist increases the output from Q=5 to Q=6, then what is the marginal revenue?arrow_forwardA monopolist is producing at a point where marginal cost exceeds marginal revenue. How should output be adjusted to increase profit?arrow_forward
- A monopolist has a cost function given by c(y) = y2 and faces a demand curve given by P(y) = 120 − y. a. What is his profit-maximizing level of output? What price will the monopolist charge? b. Suppose you put a lump sum tax of $100 on this monopolist. What would its output be? c. If you wanted to choose a price ceiling for this monopolist so as to maximize consumer plus producer surplus, what price ceiling should you choose? How much output will the monopolist produce at this price ceiling?arrow_forwardConsider a monopolist who faces the following demand function P = 100 – 2Q. The firm’s cost function is given by C(Q) = 10 + 2Q What are the profit maximizing output and price? What is the profit at this point?arrow_forward
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