Cost function for a monopolistically competitive firm

Assignment Help Microeconomics
Reference no: EM13692402

Suppose the demand and cost function for a monopolistically competitive firm are given by: Q=36-4Q,C(Q)=124-16Q+Q^2.

Determine the profit maximizing price and level of output.

Calculate the firm’s maximum profits.

What long-run adjustment should you expect? Explain.

Reference no: EM13692402

Questions Cloud

Government spending on social security-medicare : From 1950 to today, government spending on Social Security, Medicare, and Medicaid as a percentage of GDP has
Largest tax burden : Which of the following countries has the largest tax burden?
Suppose that the inverse demand function : Suppose that the inverse demand function is given by P=50-Q, and cost function of a firm is C=5qi: (1) For a competitive industry, find the market price, market output and the profit at the equilibrium.
Calculate the maximum profits : You are the manager of a monopoly and your demand and cost functions are given by P=300-3Q,C(Q)=1,500+2Q^2, respectively. What is the profit-maximizing price and output? Calculate the maximum profits.
Cost function for a monopolistically competitive firm : Suppose the demand and cost function for a monopolistically competitive firm are given by: Q=36-4Q,C(Q)=124-16Q+Q^2. Determine the profit maximizing price and level of output. Calculate the firm’s maximum profits.
Money demand rises when the price level rises because people : As you may recall from the readings, money demand rises when the price level rises because people will need more money to make their everyday purchases. For example, if the price index rose from 100 to 140.
Steady equilibrium as outlined in the solow model growth : Normal 0 false false false EN-US X-NONE X-NONE Use a suitable diagram and ..
The present worth for this investment is : Normal 0 false false false EN-US X-NONE X-NONE A new punching machine wi..

Reviews

Write a Review

Microeconomics Questions & Answers

  Why was cio successful in organizing members in late 1930s

1. why was the cio successful in organizing members in the late 1930s when it had the same one big union approach of

  Customer consumes two normal goods-chocolate and coffee

A customer consumes two normal goods, chocolate and coffee. The price of coffee rises. The income effect, by itself, suggests that the customer will consume

  Standard assumptions about individual preferences

When choosing between bundles of beer and pizza, I always look first at the amount of pizza and choose the bundle with the largest amount of pizza. If any two bundles have the same amount of pizza

  A firm makes and sells a computer

A firm makes and sells a computer for $1000. The variable cost to produce a computer, for the range of production of the firm, is $300 per unit. The total fixed costs per year to make the computer are $4.0 Million.

  There is an overall increase in income

For this part of the assignment, we will focus on the demand curve. Draw the demand curve for the A-Phone. Explain how the graph, price, and quantity demanded will change if the following occurs.

  Using readings for the module and internet reply to as a

consumers choices are prey to subtle discrepancies that arise in cognitive accounting. learning how and when you are

  Draw the ppf for scotlands economy showing situation before

developing dynamic comparative advantage doesnt always work.nbsp a notable case was in scotland were there was an

  Why the discussion should state the final effects

Describe what happens to the economy when interest rates are lowered and the economy is at near-full employment using (The Aggregate Demand-Aggregate Supply Model) The end of your discussion should state the final effects

  Bank profits-deposit liabilities

Bank Profits: Mbank has deposit liabilities of $50 million. It only keeps the minimum cash reserves required by law of 15%. Its annual costs (wages, rent, utilities, etc.) are $1.5 million. What is Mbank’s profit under the following circumstances?

  Question related to supply curve

Suppose initially that the demand supply for premium coffees is in equilibrium. Now suppose Starbucks introduces the world premium blends, demand increase substantially.

  1what is opportunity cost explain with the help of an

1.what is opportunity cost? explain with the help of an example why assumption of constant opportunity cost is very

  Why is the u.s. gdp so much higher than that of mexico

Why is the U.S. GDP so much higher than that of Mexico? Would the same reasons apply when we compare the U.S. GDP to Canada's GDP?

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