Monopoly firm will profit-maximize by setting

Assignment Help Business Management
Reference no: EM131092510

If demand is P = A - bQ, then MR = A - 2bQ. MC = dTC/dQ = c. The monopoly firm will profit-maximize by setting A - 2bQ = c, so the equilibrium quantity traded will be Q* = (A-c)/2b. The profit-maximizing price will be given by substituting this into the demand curve, so P* = A - b((A-c)/2b) = A - A/2 + c/2 = A/2 + c/2 = (A + c)/2.

Reference no: EM131092510

Questions Cloud

Present price quick profit is unable to satisfy demand : Quick Profit sells box juice for $10.50 and has an inverse demand function of: P = 80 - 0.2Q. At the present price Quick Profit is unable to satisfy demand. The owner, Mr. Deal, wants to increase the price by 60%. Do you agree? Explain!
Historic closeness to the customer : How has 3M's innovation process evolved since the company was founded? Why does 3M - a 'hothouse of innovation need to regain its historic closeness to the customer?
Write an assignment on mix design : Write an assignment on  mix design ?  Its specifications Cost considerations
Series of events that led to the great recession : In your own words, describe the series of events that led to the “Great Recession” over the 2007-2009 period. Hint: In the vocabulary of Chapter 9, an asset price bubble in what sector of the economy started the the chain of events that ultimately le..
Monopoly firm will profit-maximize by setting : If demand is P = A - bQ, then MR = A - 2bQ. MC = dTC/dQ = c. The monopoly firm will profit-maximize by setting A - 2bQ = c, so the equilibrium quantity traded will be Q* = (A-c)/2b.
Which isotope of boron is more abundant : When a beam of alpha particles passes between two electrically charged plates, the beam is deflected toward the positive plate. A) true B) false Boron oobtained from borax deposits in Death Valley consists of two isotopes. They are boron -10 and b..
Discuss why it is necessary to balance binary search trees : Discuss why it is necessary to balance Binary Search Trees (BSTs). Calculate the Average Comparison Effort (ACE) value of the BST.
Perspective of human resource management : Evaluate Harvey's decision to bring Hopwood Manufacturing to the university from the perspective of human resource management. Did he make a mistake? Should he have done anything differently?
Combined market share in the global automobile market : Automobile industry is oligopolistic in which few automobile companies control significant percentage of the total market share. Do a little research and cite some data regarding the top ten automobile companies and their combined market share in the..

Reviews

Write a Review

Business Management Questions & Answers

  Advantages and disadvantages a manager

Prepare a 1,400-word summary of the advantages and disadvantages a manager might experience in using foreign subsidiaries to sell their product.

  What production plan should the company follow

What production plan should the company follow in order to maximise profits? Using contribution per minute and Using throughput per minute.

  Consumer patternsplease help me discuss how we can work on

consumer patternsplease help me discuss how we can work on getting better statistical data that will show us the

  Replace job role-training manager by organisation developer

Topic: The current job market shows an emerging trend of replacing the job role of ‘Training Manager' with that of ‘Organisation Development Manager'.

  Heating on the consumption of heating

Analyse the effects of an increase in the cost of heating on the consumption of heating and the well-being of that individual before and after the implementation of government policy;

  Develop your own personal strategy to find opportunities

Utilizing the ideas presented of "Push", "Pull", also "Maintain" also integrating internet/library research develop your own personal strategy to find unadvertised opportunities.

  Explain summary of a third party news report on nvida corp

Explain summary of a third party news report on NVIDA Corp and A brief summary of a recent company press release (written by some one in the company) and attach the document.

  Improve and create value

At the annual board meeting of the Hardaway Company, CEO Eric Seaborne makes a presentation about the company's balanced scorecard by posing five questions to the board members. The question that most pertains to the internal perspective of the ba..

  American cancer society code of ethicsa code of ethics is

american cancer society code of ethicsa code of ethics is important in guiding decision making when values are in

  Delivering a performance appraisal with counseling

Imagine that you are the Director of Human Resources for ABC Hospital. You have been receiving complaints from several department managers about one of your recruiters, Mary Smith. It's time for Mary's annual performance appraisal, and you know th..

  Advances in mobile computing devices

Describe some of the latest advances in mobile computing devices. What trends do you see in the development of this equipment? Speculate on how future devices might look or function.

  Question about customer relationshow could the principles

question about customer relationshow could the principles used by ideo in redesigning customer relations be used in

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