Monopolist''s profit-maximizing level of output

Reference no: EM13122187

1. You are given the following information about the costs of a perfectly competitive firm.

Quantity	TFC	TVC
0	45	0
1	45	20
2	45	35
3	45	45
4	45	75
5	45	120
6	45	180

You are hired to determine the profit-maximizing quantity of the firm for different market prices. Complete the table below.

Market Price	Profit-maximizing level of output	Total Revenue	Total Cost	Profit
$14
$18
$44
$53
$70

2. "The short-run supply curve of a perfectly competitive firm is the firm's marginal cost curve."

Carefully explain the two exceptions to the statement above.

3. Suppose that, in a perfectly competitive market at the profit-maximizing quantity, the market price is greater than average total cost. Carefully explain what will happen to the number of firms, the market supply, and the price of the good as we move from the short run to the long run.

4. Suppose a monopolist faces the following demand curve:

P = 596 - 6Q. Marginal cost of production is constant and equal to $20, and there are no fixed costs.

a) What is the monopolist's profit-maximizing level of output?

b) What price will the profit-maximizing monopolist charge?

c) How much profit will the monopolist make if she maximizes her profit?

d) What would be the value of consumer surplus if the market were perfectly competitive?

e) What is the value of the deadweight loss when the market is a monopoly?

Reference no: EM13122187

Questions Cloud

Find value for the top of women-s cholesterol levels : Assume the cholesterol levels of adult American women are normally distributed with a mean of 190 mg/dL and a standard deviation of 26 mg/dL. What percent of adult women do you expect to have cholesterol levels at least 200 mg/dL?

How might the problem of immune rejection of ips cell : How might the problem of immune rejection of iPS cell replacements eventually be avoided?

Probability using bayes theorem : Probability using Bayes theorem. An oil executive has determined that the probability that this oil field contains oil is 0.6. Before starting the drilling she decides to order a seismological test to see if there is oil in the ground.

Functions-zeros and application : Find the zeros of the function in terms of e, f, and g. Under what condition would the zeros of the given function be two distinct real values?

Monopolist''s profit-maximizing level of output : What is the monopolist's profit-maximizing level of output - what price will the profit-maximizing monopolist charge and how much profit will the monopolist make if she maximizes her profit?

Illustrate what are some of these benefits : Illustrate what are some of these benefits and illustrate what result does the organization hope to realize as a result of providing these inducements?

What is the name for undifferentiated cells : What is the name for undifferentiated cells that are both capable of self-renewal (production of more cells like themselves) and multipotent, that is capable of differentiating into two or more mature cell types?

What are embryonic stem cells : What are embryonic stem cells (ES)? How do embryonic stem Cells differ from Adult stem cells?

At what temperature will gas occupy 3.60 l : a gas sample occupies 4.20 l under a pressure of 800 torr at 350K.At what temperature will it occupy 3.60 L at the same pressure?

User Account

All Pages