What is the profit-maximizing level of output

Assignment Help Business Economics

Reference no: EM131385955

Assume a monopolist faces a market demand curve P ?= 100 -? 2Q and has the short-run total cost function C= 640+ 20Q. What is the profit-maximizing level of output? What are profits? Graph the marginal revenue, marginal cost, and demand curves, and show the area that represents deadweight loss on the graph.

above, what would price and output be if the firm priced at socially efficient (competitive) levels? What is the magnitude of the deadweight loss caused by monopoly pricing?

Reference no: EM131385955

Questions Cloud

Recommend an emphasis on inflation or unemployment : As you now know, the Phillips Curve shows the tradeoff between unemployment and inflation. If you were Chairman Yellen, in today’s current economic state, would you recommend an emphasis on inflation or unemployment?

Explore the ethical issues that rick and rick family : Rick Stone is a 48-year-old male who is diagnosed with rapidly advancing Lou Gehrig's (ALS) disease. Explore the ethical issues that Rick and Rick's family may face in the future. As a healthcare provider, how might you advise Rick and his famil..

Design a circuit with three inputs and three outputs : The circuit will produce a logic 1 on the output that corresponds to that input. Discuss how you would expand this circuit to a larger number of inputs, say 12 inputs or 30 inputs.

What are the measures : Monopolistically competitive firms try to differentiate their products in order to eliminate substitutes. What are the comparable measures that can be taken in labor markets to decrease the number of “substitutes” for some types of labor? What are th..

What is the profit-maximizing level of output : Assume a monopolist faces a market demand curve P ?= 100 -? 2Q and has the short-run total cost function C= 640+ 20Q. What is the profit-maximizing level of output? What are profits?

Social networking in a management setting : If so, describe your experience and whether you feel your use of social networking improved your effectiveness in reaching organizational goals. (If you have never used a social network for work, describe one or two possible benefits of social net..

How to implement a j-k flip-flop starting with a d flip-flop : Show how to implement a J-K flip-flop starting with a D flip-flop.

Feel the future of social security is at risk : From your readings and research this week it should be apparent that many feel the future of Social Security is at risk. What are your thoughts about the future of Social Security? Should it be saved? Should future participants be allowed to inves..

Analyze the various means of tourism : Analyze the various means of tourism (rail, automobile, and coach travel; airlines; cruise ships) to determine which sector you anticipate will grow the most in the next 20 years. Explain your rationale.

User Account

All Pages