Micro Economic Theory, Microeconomics

Assignment Help:
a monopolist faces a demand curve Qd- 120-2p and has costs given by C(Q)=20Q+100 (marginal cost is constant at $20)

a. What is the optimal Price and Quantity for this monopolist?
b. Calculate the monopolist''s profits.
c. Had this monopolist been acting as a perfectly competitive firm, what would have been the market price, and what quantity would the firm have chosen?
d. Graph the (inverse) demand curve, marginal revenue curve and marginal cost curve. Identify the monopolist''s profit maximizing price and quantity, the price and quantity from the part C, and illustrate the area of efficiency loss (DWL) imposed due to monopoly power.

Related Discussions:- Micro Economic Theory

Theory of monopoly, Monopoly is that form of market where there is only one...

Monopoly is that form of market where there is only one firm producing a particular product. Being the sole supplier, the monopoly firm has the power to control prices and output t

Supply, #1 explain with the aid of diagram the effect of an increase in dem...

#1 explain with the aid of diagram the effect of an increase in demand for palm oil on the equilibrum position for palm kernel

HELP, Suppose Jean Splicer, an investor, buys $300,000 of shares of stock i...

Suppose Jean Splicer, an investor, buys $300,000 of shares of stock in a diversified bundle of Bio-tech firms and exactly one year later sells those shares for $315,000. Assume the

Pp curve, how does pp curve solve the problem of how to produce, what yo pr...

how does pp curve solve the problem of how to produce, what yo produce, and when to produce?

Utility functions, can you help me answer an economics question

can you help me answer an economics question

Non-existence of objective probability distributions, Non-existence of Obje...

Non-existence of Objective Probability Distributions :   Let us see why expectations are volatile in nature? According to Keynes (1936, pp. 149): "Our knowledge of the fact

Demand elasticity analysis, demand elasticity analysis and its significance...

demand elasticity analysis and its significance in pakistan

Diseconomies of scale, Diseconomies of Scale A rises in a firm's cost ...

Diseconomies of Scale A rises in a firm's cost of producing an additional unit as all another factors of production rising. Diseconomies of scale can be caused by poor and ine

Ionization energy or ionization potential, Describe Ionization energy or io...

Describe Ionization energy or ionization potential and The factors affecting the ionization energies

Write Your Message!

Captcha
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