Profit-maximizing quantity for good sold at single price

Assignment Help Business Economics

Reference no: EM131163560

A firm operating in a monopoly market knows that the demand curve for its curve is given by P = 1,000 -2*Q, and there are no fixed costs of producing of producing the good and that the marginal cost of producing the good is given by the equation MC = 100.

Draw the demand curve.

Draw the marginal revenue (MR) curve.

Indicate the portion of the demand curve where the quantity effect is stronger than the price effect. What happens with the Total Revenue (TR) and the Marginal Revenue (MR) in this portion of the demand curve?

Calculate the profit-maximizing price and the profit-maximizing quantity for the good sold at a single price. Find the maximum level of profits achieved by the firm.

Suppose that the monopolist is now willing to sell the first 50 units at a single price P1, between the 50 and the 150 units at a price P2, and between 150 and 225 units at a price P3. This is called price discrimination. Determine the monopolist’s profits when it pursues a three-price policy.

Reference no: EM131163560

Questions Cloud

How do ethical issues impact organizations and operations : How do ethical issues impact organizations and operations? Include an example seen in the workplace, in the news, etc. that relates to real-life situations.

Determine riordan manufacturing strategy : Determine Riordan's manufacturing strategy (chase, level, or combination) and explain its benefits. Create a process flow diagram for the electric fan supply chain. Select two metrics to evaluate performance of the electric fan supply chain

Develop a paper that discusses the issue : Select one of the isses the workplace. You narrow the topic by a subtopic. Develop a paper that discusses the issue have chosen, subtopic if applicable, and how your topic has or is affecting the environment that you have been in are currently a p..

Is there any height h for which flow might not be laminar : Water at 20°C is to be siphoned through a tube 1 m long and 2 mm in diameter, as in Fig. P6.14Is there any height H for which the flow might not be laminar? What is the flow rate if H =50 cm? Neglect the tube curvature.

Profit-maximizing quantity for good sold at single price : A firm operating in a monopoly market knows that the demand curve for its curve is given by P = 1,000 -2*Q, and there are no fixed costs of producing of producing the good and that the marginal cost of producing the good is given by the equation MC =..

Write essay on one of the term integrity honor pride and joy : Write a 500 word definition essay on one of the terms or concepts from the list provided below. Use other modes of writing, such as description, comparison and contrast, and persuasion.

What recommendations can you provide to shawn : What recommendations can you provide to Shawn and his team to help prepare them for anticipated problems and unanticipated problems

What is division of labor society : What is division of labor society and how does it give rise to a science like economics? Name and explain two ways that the division of labor increases the productive capability of an economic system.

Discuss potential threats to internal validity posed : Discuss potential threats to internal validity posed and Describe two ways to deal with the threats

User Account

All Pages