Calculate the monopolist profit maximizing price

Assignment Help Econometrics

Reference no: EM13191765

A monopolist's has a constant marginal and average cost of $10 and faces a demand curve of QD = 1000 - 10P. Marginal revenue is given by MR= 100 - 1/5Q.

A. Calculate the monopolist profit maximizing quantity, price and profit.

B. Now suppose that the monopolist fears entry, but thinks that other firms could produce the product at a cost of $15 per unit (constant marginal and average cost) and that many firms could potentially enter. How could the monopolist list attempts to deter entry and what would the monopolist quantity and profit be now?

C. Should the monopolist try to deter entry by setting a limit price?

Reference no: EM13191765

Questions Cloud

Use the variable x to represent the number of months : find the quadratic equation that represents the monthly value of a share of ACME Corporation since January 2009. Use the variable x to represent the number of months after January 2009 and the variable y to represent the monthly value.

Exposure to bright light causes : Exposure to bright light causes the

Describe in complete sentences and demonstrate : Create your own radical equation. Describe in complete sentences and demonstrate the process in finding its solution(s).

State what is the fractional conversion of ethane : What is the fractional conversion of ethane? b) What is the production rate of ethanol?

Calculate the monopolist profit maximizing price : A monopolist's has a constant marginal and average cost of $10 and faces a demand curve of QD = 1000 - 10P. Marginal revenue is given by MR= 100 - 1/5Q. A. Calculate the monopolist profit maximizing quantity, price and profit.

How long will it take for 79% of a sample to decay : Radium-221 has a half-life of 30 sec. How long will it take for 79% of a sample to decay?

Define a new herbicide and herbigon : As a chemist for an agricultural products company, you have just developed a new herbicide,"Herbigon," that you think has the potential to kill weeds effectively

Determine first withdrawal occurs at the end of six months : What quarterly deposit must be made at the end of each quarter until Corey retires so that he can make a withdrawal of $40,000 semiannually over the first 10 years of his retirement. Assume that his first withdrawal occurs at the end of six months..

What is the value of x : The perimeter of a square is 68 meters. The side length can be represented as (8x - 3) meters. What is the value of x?

User Account

All Pages