Determine the monopolist output and price

Assignment Help Microeconomics
Reference no: EM132206542

Question: A monopoly has the following total cost function: C = 120 + 10Q.

a. Determine the monopolist's output and price, assuming it cannot price discriminate. What is the total profit earned by the monopolist?

b. What would its total profit be if the monopolist were to produce the efficient output, but could not price discriminate.

c. How would your answer to b. change if (i) the monopolist could charge a price of 60 for the first block of its output, and a price of 50 for the second block, and (ii) if it could discriminate perfectly.

Reference no: EM132206542

Questions Cloud

How many square feet of solar panels should be installed : "A building owner is considering installing solar roof panels on a building. The cost of installing solar panels is $19,000 + $15.80*S.
Calculate the profit maximizing bundles : A monopolist has 3 different types of customers, types H, M and L with demands given by qH = 18pq M = 14 p qL = 10p. Assume that there are 2 persons of type L.
Alabama and michigan reacted to the impending bankruptcy : The states of Alabama and Michigan reacted to the impending bankruptcy of their respective local government in very different ways.
Compare best international attributes : Compare best international attributes when deciding what characteristics fit specific choices for alliance with international partner providing list
Determine the monopolist output and price : Determine the monopolist's output and price, assuming it cannot price discriminate. What is the total profit earned by the monopolist?
Evaluate economic impacts of supply chain management : Evaluate the economic impacts of supply chain management (SCM) and how the development of supply sources,
What more general conclusion can you draw from the case : The supply of land in Manhattan is perfectly inelastic at 60,000 acres and the market for land rentals is perfectly competitive.
Evaluate overall importance of cultural influences : Evaluate overall importance of cultural influences within organization providing examples and critical concepts for various attributes of organizational culture
Transformational leadership differ from servant leadership : How does transformational leadership differ from servant leadership?

Reviews

Write a Review

Microeconomics Questions & Answers

  Review problem on business law

Kinkaid Company, a corporation organized under the laws of State M, after receiving approval by the shareholders, sold the entire assets of the company.

  Mr. a''s reservation utility is zero.

Professor P cares about how many hours that Mr. A teaches and about how much she has to pay him. Professor P wants to maximize her payoff function, x-s, where x is the number of hours taught by Mr. A and s is the total wages she pays him. If Mr. A te..

  What is the equilibrium interest rate

If the Federal Reserve Bank wants to increase i by 10 per- centage points (e.g., from 2% to 12%), at what level should it set the supply of money?

  Contract worth at the time of contract signing

A local newspaper headline blared, “Bo Smith Signs for $30 Million.” The article revealed that Bo Smith, the former record-breaking running back from Football University, signed a $30 million package with the Nebraska Lions.

  Treasury security carries a 3 annual interest rate find

if the expected default rate on a particular mortgage backed security is 4 per year and the corresponding treasury

  If a competitive firm is currently producing a level of

if a competitive firm is currently producing a level of output at which profit is not maximized then it must be true

  Use of preferential duties is inconsistent

Trying to explain why a country's use of preferential duties is inconsistent with the most-favored nations (MFN) treatment of trading partners by the country.

  Why would environmentalists prefer oil companies

Why would environmentalists prefer oil companies to be sole proprietorships ith extremely rich owners instead f corporation?

  What would the current and projected unemployment

The company is Hershey imagine that it moves to China for its operations. what would the current and projected unemployment over the next 5 years. It must be at least 150 words in length, use proper in-citation.

  Intermediate microeconomics - budget constraint

Intermediate Microeconomics - Budget Constraint: Draw Alan's budget constraint with such promotional campaign.

  Supply schedule defined analogously shows total quantities

A supply schedule (or function or curve) defined analogously shows the total quantities (Q) that sellers are willing to sell at various prices (P) in a given period of time. One very special case is that of a fixed supply, where the quantity supplied..

  Is there evidence of an inverse relationship

Is there evidence of an inverse relationship between the change in the unemployment rate (ΔU) and the change in inflation rate (ΔP)? What is the response of ΔU at time t+1 following a unit shock to ΔU at time t?

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