Calculate the profit-maximizing quantity for the monopolist

Assignment Help Microeconomics
Reference no: EM132414770

A monopolist has a demand function given by Q = 100 - P and a Total Cost function given by C(Q) = 16 + Q2.  Notice how the demand function is identical to Question 5; however, the cost structure in Question 5 implies constant marginal cost, whereas the monopolist faces a fixed cost and increasing marginal cost in this question.

a. Calculate the profit-maximizing quantity (Q*) for the monopolist.

b. Calculate the profit-maximizing price (P*) if the firm sold the profit-maximizing quantity (Q*).

c. Calculate the profits earned by the monopolist if it sells the profit-maximizing quantity (Q*) at the profit-maximizing price (P*).

Reference no: EM132414770

Questions Cloud

Learning Team is cybersecurity engineering team : Your Learning Team is a cybersecurity engineering team for a financial services company that sells investments to, and manages investment portfolios for,
Create the payoff matrix for game : If both Apple and Google price their phone at $8000, then each car manufacturer makes a profit of $6 billion. a. Create the payoff matrix for this game.
How do you apply real-world relevancy to the lessons : Following your observation, have a discussion with your mentor teacher about the social studies lesson. In 250-500 words summarize your observation.
Applying information visualization to policy analysis : Define three advantages of applying information visualization to policy analysis. Discuss the two common mistakes in managing complex systems.
Calculate the profit-maximizing quantity for the monopolist : a. Calculate the profit-maximizing quantity (Q*) for the monopolist. b. Calculate the profit-maximizing price (P*) if the firm sold the profit-maximizing
How questioning strategies can be implemented : In 250-500 words, summarize and reflect on how asking a variety of questions and using different questioning strategies can help students develop higher-order.
Calculate the profit-maximizing quantity : A monopolist has a demand function given by Q = 100 - P and a Total Cost function given by C(Q) = 20Q.
What quantity amount will an individual firm produce : a. What quantity amount will an individual firm produce in the long run? b. What is the long-run equilibrium price for this industry?
How do all the elements add up to create the film : Watch and Analyze the film Arrival(Dennis Villanueva 2016) focus on the topic of Science Fiction. Then look at the film as a whole How do all these elements.

Reviews

Write a Review

Microeconomics Questions & Answers

  Computing the nominal interest rate

Sally Smith has been presented with an investment opportunity. She can invest her money in an account that pays a quarterly rate of 1.25%.

  What would be her marginal rate of technical substitution

The equation and scenario is in the file A.) What would be her marginal rate of technical substitution between the inputs in her production of food? What about in her production of "everythingelse"?

  What new measures and tools has the federal reserve

What new measures and tools has the Federal Reserve employed in the past 2 years that have not been employed in the past 2 decades?

  What method is utilized to ration goods in the market

what method is used to ration goods in a market economy? how does this rationing method influence the incentive of

  Explain the significance of supply

Explain the significance of supply, Law of Supply, supply schedule, supply curve, market supply curve, quantity supplied, change in quantity supplied.

  Write an equation in slope intercept

Write an equation in slope intercept form given the information below. Show your work for full credit. A straight line contains the points (x, y) = (5, 4) and (10, 8)

  What output will maximize total revenue

A monopoly faces the following TR and TC schedules: TR = 300q - 2q2.

  Explain how total cost decrease as output doubles

Given a 50% learning curve, where the first unit costs is $1,000, the cost of the 4th unit would be: a. $800 b. $250 In the linear break-even model, the difference between selling price per unit and variable cost per unit is referred to as:  a. varia..

  What factors will influence the decision

Search "scholar.google.com" or your textbook. Discuss the technical skills required to have a CSIRT response team consisting of employees with other job duties.

  Explain how the two 2 strategies that you identified could

write a three to four 3-4 page paper in which you 1. discuss the current economic situation in the u.s. as compared to

  Explain this in a mathematical way

Suppose that the inflation rate is 5%, the rate of growth of nominalGDP is 8%, then what is the rate of growth of real GDP? Could you explain this in a mathematical way?

  Write about monopoly with marginal revenue and cost

These multiple choice problems related to Economics and the first problem is about monopoly with marginal revenue and cost given for a level of output. The second problem is about Herbert Simon's views.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd