MICROECONOMICS-ACCESS CARD <CUSTOM>
11th Edition
ISBN: 9781266285097
Author: Colander
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Question
Chapter 14.A, Problem 3QE
a)
To determine
The profit-maximizing level of price and output of the monopolist when the fixed cost is $102.
b)
To determine
The average cost of the monopolist.
c)
To determine
Total profit of the
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
A monopolist has a demand curve given by Q=100-P and a total cost curve given by TC= Q2 + 16.
a.Find the monopolist’s profit maximizing quantity and price. Indicate them on the graph.
b.How much economic profit will the monopolist earn?
c. Calculate the price elasticity of demand at the equilibrium price level.
A monopolist has a demand curve given by
Q=100-P and a total cost curve given by
TC= Q2 + 16.
a. Find the monopolist's profit maximizing
quantity and price. Indicate them on the
graph.
6. How much economic profit will the
monopolist earn?
Calculate the price elasticity of demand at
the equilibrium price level.
QUESTION 1
A. The total cost function for a monopolist is given by TC = 44,000 + 180Q + 0.03Q² and the demand
function is P = 420 – 0.06Q per unit of output.
i.
What is the profit maximising level of output?
ii.
Calculate the profit maximizing price.
iii.
Calculate total profit at the profit maximising level of output.
Chapter 14 Solutions
MICROECONOMICS-ACCESS CARD <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
Knowledge Booster
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.arrow_forwardQ2. The associated marginal cost A monopolist has a demand curve given by P= 96 - Q and a total cost curve given by TC = 56+ curve is MC = 2Q. Find the monopolist's profit-maximizing quantity and price. How much economic profit does the monopolist earn? Instructions: Enter your answers as whole numbers. Profit-maximizing price: $ Profit-maximizing quantity: Economic profit: $arrow_forwardConsider a monopolist with the following demand curve. Price: 24, 22 , 20, 18, 16, 14, 12, 10, 8, 6 Quantity Demanded: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 [All answers are integers with no units.] 1.If this firm has a marginal cost of $12 per unit, how many will they produce? 2.What will their profit be? 3.What will consumer surplus be? (Rectangle method!) 4.What is the efficient quantity?arrow_forward
- Exercise 3.3. Suppose a profit-maximizing monopolist is producing 800 units of output and is charging a price of $40 per unit. a. If the elasticity of demand for the product is -2, find the marginal cost of the last unit produced. b. What is the firm's percentage markup of price over marginal cost? c. Suppose that the average cost of the last unit produced is $15 and the firm's fixed cost is $2000. Find the firm's profit.arrow_forwardQuestion 33 Suppose a monopolist faces the demand curve P = 200 – 2Q, has marginal cost curve MC = 2Q, and zero fixed costs. If the monopolist can perfectly price discriminate, which of the following is true? The monopolist sells 33 units at a profit of 3300. The monopolist sells 33 units at a profit of 1650. The monopolist sells 50 units at a profit of 5000. The monopolist sells 50 units at a profit of 2500.arrow_forwardA monopolist can produce at a constant marginal cost of $5 and a fixed cost of $55. It faces a market demand curve given by Q = 24- P/4.a. Calculate the profit-maximizing price and quantity for thismonopolist. Also, calculate its profits. b. Suppose a competitive firm has the same constant marginal cost of £5. Find the profit maximising output for this firm. What is the price that the competitive firm must charge? c. The government decides to impose a new policy on this monopolist. In particular, the government wants to introduce price regulation such that the regulated price will consequently make this monopolist earns zero profit only. What is the regulated price that this monopolist should charge? How many quantities of output are produced with this new regulated price?arrow_forward
- 1) If a monopolist is producing a quantity where marginal revenue is equal to $700 and the marginal cost is equal to $700, the monopolist should ________ to maximize profits. pickoneoption: a.decrease production and increase the price b. decrease production and decrease the price c. continue producing at the current price d. increase production and lower the price e. increase production and increase the price 2) In the long run, monopolistically competitive firms like fast-food restaurants operate at a price that pick one: a) drives economic profit to zero b. equals to the average variable cost. c. equals to the minimum average total cost. d. allows them to make a small economic profit. e. equals to the marginal cost.arrow_forwardA monopolist faces the following demand curve and total cost curve for its product: Demand curve: P = 200 - QTotal cost curve: TC = 20Qa. Write the equation for the total revenue function in terms of Q. b. Write the equation for the marginal revenue function. c. What is the marginal cost? d. What is the profit-maximizing quantity for the monopolist? e. What is the profit maximizing price? f. What is the profit for the monopolist as a result?arrow_forward2. A monopolist faces the demand curve p=250-2q and its total cost function is given by TC = F + 10q, where F is a non-negative fixed cost. a. Find the profit-maximising price and quantity produced for the monopolist. b. What is the highest value of F that allows the firm to earn profits (of zero or more) rather than losses?arrow_forward
- Can this be answered and explained to me?arrow_forwardThe graph below shows the demand curve and cost data for a firm operating as a monopolist. In addition, Curve 4 shows average total costs (ATC). At the profit-maximizing (loss minimizing) quantity, the monopolist is experiencing a. profits b. losses c. break-even pointarrow_forwardi need solution in words not handwrittenarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Exploring EconomicsEconomicsISBN:9781544336329Author:Robert L. SextonPublisher:SAGE Publications, Inc
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc
Microeconomics: Private and Public Choice (MindTa...
Economics
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...
Economics
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:Cengage Learning