Find the marginal cost and marginal revenue functions

Assignment Help Business Economics

Reference no: EM131194965

In country V, the government is the monopolist that produces all iron. The market demand for iron is

Q_d = 10,000 – (2/5)P

The Total Cost of the monopolist is: TC = 5/2 Q^2

a. Write down the inverse demand function. Find the Average Total Cost (ATC) function

b. What does the monopolist control to maximize its profit?

c. Write down the profit as a function of quantity.

d. Find the Marginal Cost and Marginal Revenue functions

e. Find the optimal quantity of output for the monopolist

f. Find the Price that the monopolist charges, assuming no price discrimination

g. What is the monopolist’s profit?

h. Present the Demand curve, MR curve, MC, ATC, and Profit in a graph

i. Calculate the consumer surplus, producer surplus, and deadweight loss in the monopoly market.

j. Assuming the market demand and supply stays the same, but the market is perfectly competitive. Calculate consumer surplus and producer surplus for this perfectly competitive market.

k. Compare CS and PS in part (i) and part (j).

Reference no: EM131194965

Questions Cloud

Calculate the hhv in terms of moisture- and ash-free : A sample of refuse has a moisture content of 20%. A 1.2 g sample is placed in a calorimeter, and a gross calorific value of 6200 Btu/lb is measured based on the temperature rise. Further analysis shows that 0.3 g of ash remains in the bomb calorim..

Selling price of the bond : Heww Inc., issued a $50,000, 10 year bond with a stated interest rate of 6%. Assume interest payments are made semi-annually. What is the selling price of the bond if the market rate of interest is 5%? (Round to the nearest dollar.)

What is the importance of these communication methods : What are appropriate communication methods for managers within this organization? What is the importance of these communication methods within this organizational structure?

Do you agree with your friends analysis : Your friend computes that, at the rate of $17.84 per month, it will take over 233 years to pay off the $50,000 mortgage.- Do you agree with your friend's analysis?

Find the marginal cost and marginal revenue functions : In country V, the government is the monopolist that produces all iron. What does the monopolist control to maximize its profit? Write down the profit as a function of quantity. Find the Marginal Cost and Marginal Revenue functions. Calculate the cons..

Responsibilities of the federal government to state : What are the responsibilities of the federal government to state and local governments that are struggling to deal with the "costs" of illegal immigration?

Education and economic development found by easterlin : Explain the link between education and economic development found by Easterlin. Does higher education for the elite or basic education for the masses have a larger impact on development?

Which company has the higher pe ratio : Finance or Google Finance to look up the P/E ratios for Verizon Communications and Walmart.- Which company has the higher P/E ratio?

Education and economic development : Q. Explain the link between education and economic development found by Easterlin. Does higher education for the elite or basic education for the masses have a larger impact on development?

User Account

All Pages