What is the maximum amount of profit the firm can earn

Assignment Help Econometrics

Reference no: EM13231575

A monopolist serves a market in which the demand is P=120-2Q. It has a fixed cost of 300. Its marginal cost is 10 for the first 15 units (MC=10 when 0<Q<15). If it wants to produce more than 15 unites, it must pay overtime wages to its workers, and its marginal cost is then 20. What is the maximum amount of profit the firm can earn (assuming the same price for all units sold.)?

Reference no: EM13231575

Questions Cloud

Find the optimal order quantity : Zip Games purchases blank 3.5-inch disks onto which it copies its software for sale through its mail order operation. A disk costs Zip $.20. Processing an order for more disks cost $15. Zip uses 60000 disks annually, and the company has a 25% cost..

Pope of various offenses : King Henry’s IV’s letter accuses the Pope of various offenses. What are these offenses? Does King Henry seem justified in his castigation of Hildebrand (Pope Gregory)?

Pressure is one of the components of the fraud triangle : Pressure is one of the components of the fraud triangle.

Explain what was the concentration of hydroxide ion : The student then took 100 ml of the Mg(OH)2 solution and reacted with HCl(aq). If 13.75 ml of .010M HCL reacted with the OH-(aq), what was the concentration of hydroxide ion in the 100ml solution?

What is the maximum amount of profit the firm can earn : A monopolist serves a market in which the demand is P=120-2Q. It has a fixed cost of 300. Its marginal cost is 10 for the first 15 units (MC=10 when 0

How many tires should rocky mountains tire order each time : How many tires should Rocky Mountains tire order each time it time it places an order?

Describe steps improving or maintaining relations with other : Describe the steps necessary for improving and maintaining relations with other business units

Discuss is there a strictly dominated strategy : There are two players i = 1,2. Each player announces a number xi ? {0, 1, 2,...,10}g and the announcement is done simultaneously. The one who says lower number wins. If the player wins, he gets 1$, if he loses, he gets 0.

How can a firm reduce its risk in this type of expansion : What are the factors that must be considered, and how can a firm reduce its risk in this type of expansion?

User Account

All Pages