Caluclating monopoly price and profit maximizing output

Assignment Help Macroeconomics

Reference no: EM1370084

You are the manager of a firm that sells its product in a competitive market at a price of 50. Your firms cost structure is
c=40 + 5Q2.
The profit maximizing output for your firm is

4/5
10
5
45

Suppose a monopolistic knows the own-price elasticity of demand for its product is -3 and its marginal cost of production is constant MC(Q) = 10. To maximize its profits, the monopoly price is

1.50 per unit
6.67 per unit
10.00 per unit
15.00 per unit

Reference no: EM1370084

Questions Cloud

Question related to corporations : What are the factors discussed in terms of individuals and relationships at the corporation and how do they shape your view of the individual and how to manage people

Create class polynomial is array of terms : Create the class Polynomial. Internal representation of the Polynomial is the array of terms. Each term contains the coefficient and the exponent.

Contrast the two systems in terms of number of agents : Contrast the two systems in terms of number of agents needed to achieve the average waiting waiting time of 5 minutes.

What are characteristics of well-designed goals : What are three characteristics of well-designed goals and describe a brief overview of the firm and its goals. Make sure to support this.

Caluclating monopoly price and profit maximizing output : Suppose you are the manager of a firm that sells its product in a competitive market at a price of 50. Your firms cost structure is c=40 + 5Q2. The profit maximizing output for your company is;

Determining profit-maximizing price and quantity : The demand function for product sold by an oligopolist operating in the short run is given below: Compute the profit-maximizing price and quantity, if the firm operates in short run.

Explain what new or emergent strategies will be pursued : Explain What new or emergent strategies will be pursued and What products or services will we offer our customers in the future?

Program to take input five numbers-display mean average : Write the program which takes as input five numbers and outputs mean average and standard deviation of numbers. If numbers are x1, x2 ,x3, x4, and x5, then mean is?

Determining marginal revenue and profits : A firm with market power produces widgets at marginal cost of $10 per unit and zero fixed costs. It faces demand function given by P = 50 - Q. Find out the marginal revenue for the firm?

User Account

All Pages