Find the monopolist profit-maxmizing output and price

Assignment Help Business Economics

Reference no: EM131098318

Suppose the demand curve for Q_D = 500 - p, and the marginal revenuue function is MR = 500 - 2Q. The monopolist has a constant marginal and averge total cost of $50 per unit.

a) Find the monopolist profit-maxmizing output and price

b) Calculate the monopolist

c) What is the Lerner Index for this industry.

Reference no: EM131098318

Questions Cloud

What are the pros and cons of electoral system : What are the pros and cons of electoral system? What are the most compelling arguments you found for continuing to use the Electoral College? What are the most compelling arguments you found that were in favor of abolishing the Electoral College?

Two mutually exclusive alternatives are under consideration : Two mutually exclusive alternatives are under consideration. Alt A. will cost $40,000, provide annual benefits of $15,000 and a salvage of $4000 at the end of its 4 year life. Alternate B will cost $63,000, provide annual benefits of $21,000, and a s..

Can country continue to afford such deficits indefinitely : Assume that a country’s real growth is 2 percent per year, while its real deficit is rising 5 percent a year. Can the country continue to afford such deficits indefinitely? What problems might it face in the future?

Decrease in consumer spending can be expected to shift : A decrease in consumer spending can be expected to shift the

Find the monopolist profit-maxmizing output and price : Suppose the demand curve for QD = 500 - p, and the marginal revenuue function is MR = 500 - 2Q. The monopolist has a constant marginal and averge total cost of $50 per unit. Find the monopolist profit-maxmizing output and price. Calculate the monopol..

Health insurance-high-risk and low-risk consumers : Suppose there are two types of people who need health insurance; high-risk and low-risk consumers. High-risk consumers have a relatively high probability of needing expensive medical care and on average incur $2,000 of medical expenses per year. If a..

Who encodes message in the communication process : The individual who encodes a message in the communication process is also most likely to be which of the following:

Suppose that the demand for olive oil is highly inelastic : Suppose that the demand for olive oil is highly inelastic. Also suppose that the supply of olive oil is fixed for the year. If the demand for olive oil suddenly increases because of a shortage of corn oil, you would expect a _____________ in the pric..

Several celebrated investors-stock picker frequently mentiod : Several celebrated investors and stock pickers frequently mentioned in the financial press have recorded huge returns on their investments over the past two decades. Does the success of these particular investors invalid the EMH? Explain

User Account

All Pages