MICROECONOMICS (LL)-W/ACCESS >CUSTOM<
11th Edition
ISBN: 9781264207718
Author: Colander
Publisher: MCG CUSTOM
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Question
Chapter 14.A, Problem 2QE
a)
To determine
The profit-maximizing level of
b)
To determine
The average cost of the firm.
c)
To determine
Total profit of the firm.
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Students have asked these similar questions
Suppose the demand curve for a monopolist is QD = 400 - P, and the marginal revenue function is MR = 400 - 2Q. The monopolist has a constant marginal and average total cost of $40 per unit.
a. Find the monopolist's profit-maximizing output and price. Show on a graph.
b. Calculate the monopolist's profit.
Suppose there is a monopolist in the market for a specific video game facing a demand
curve: P = 20-0.5Q with MR = 20 - Q. The monopolist marginal cost curve is MC = 4, its
total variable costs are TVC = 4Q and it faces a total fixed costs equal TFC = $102.
a. What is the optimal quantity to maximize profit?
b. What is the optimal price to maximize profit?
c. What is the profit for the monopoly?
d. What is the consumer surplus?
There are two groups of consumers. In the first group, each consumer has the inverse demand function P = 40 – Q. In the second group, each consumer has the inverse demand function P = 20 – Q. There are 10 consumers in each group, or 20 consumers in all. Marginal cost is always zero. The monopolist wants to maximize profits by designing a two-part tariff. Calculate the two parts of the tariff, and calculate profits.
Chapter 14 Solutions
MICROECONOMICS (LL)-W/ACCESS >CUSTOM<
Ch. 14.1 - Prob. 1QCh. 14.1 - Prob. 2QCh. 14.1 - Prob. 3QCh. 14.1 - Prob. 4QCh. 14.1 - Prob. 5QCh. 14.1 - Prob. 6QCh. 14.1 - Prob. 7QCh. 14.1 - Prob. 8QCh. 14.1 - Prob. 9QCh. 14.1 - Prob. 10Q
Ch. 14.A - Prob. 1QECh. 14.A - Prob. 2QECh. 14.A - Prob. 3QECh. 14.A - Prob. 4QECh. 14 - Prob. 1QECh. 14 - Prob. 2QECh. 14 - Prob. 3QECh. 14 - Prob. 4QECh. 14 - Prob. 5QECh. 14 - Prob. 6QECh. 14 - Prob. 7QECh. 14 - Prob. 8QECh. 14 - Prob. 9QECh. 14 - Prob. 10QECh. 14 - Prob. 11QECh. 14 - Prob. 12QECh. 14 - Prob. 13QECh. 14 - Prob. 14QECh. 14 - Prob. 15QECh. 14 - Prob. 16QECh. 14 - Prob. 17QECh. 14 - Prob. 18QECh. 14 - Prob. 19QECh. 14 - Prob. 20QECh. 14 - Prob. 21QECh. 14 - Prob. 22QECh. 14 - Prob. 23QECh. 14 - Prob. 24QECh. 14 - Prob. 25QECh. 14 - Prob. 1QAPCh. 14 - Prob. 2QAPCh. 14 - Prob. 3QAPCh. 14 - Prob. 4QAPCh. 14 - Prob. 5QAPCh. 14 - Prob. 6QAPCh. 14 - Prob. 7QAPCh. 14 - Prob. 1IPCh. 14 - Prob. 2IPCh. 14 - Prob. 3IPCh. 14 - Prob. 4IPCh. 14 - Prob. 5IPCh. 14 - Prob. 6IPCh. 14 - Prob. 7IPCh. 14 - Prob. 8IPCh. 14 - Prob. 9IP
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- Acme is a monopolist for a good with inverse demand P = 4000 – 6Q, where P is the price in dollars and Q is the amount sold. Acme's variable costs are TVC(Q) = 4Q². With these functions, the marginal revenue is MR(Q) = 4000 – 12Q and marginal cost is MC(Q) = 8Q. a) If Acme has no fixed costs, what is its profit maximizing price? b) If Acme has non-sunk fixed costs of $700,000, is it worth operating or should they shut down?arrow_forwardA monopolist can produce at a fixed cost of £55 and a constant marginal cost of £5. It is confronted with a market demand curve of Q = 24- P/4.a) Determine the monopolist's profit-maximizing price and quantity. Calculate the profits as well.b) Assume that all firms have the same constant marginal cost of £5. Find the firm's profit-maximizing output. What must the competitive firm charge as a price? c)The government decides to change the monopolist's policy. The government, in particular, intends to impose price regulation so that the regulated price results in the monopolist earning zero profit. What should this monopolist charge as a regulated price? With this new regulated pricing, how many units of output were produced?arrow_forwardMarket demand is P = 50 -2Q. Firm has cost function TC(Q) = 5 + 2Q + Q^2. If the firm's enters the market and acts like a monopolist, what is its profit?arrow_forward
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