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

Oligopoly, How to calculate new profit earn by a firm in oligopoly if anoth...

How to calculate new profit earn by a firm in oligopoly if another firm cheat

Americas Dependency on China, What will be the effects of americas dependen...

What will be the effects of americas dependency on china?

What is mixed economy, Mixed Economy: This type of economic system combines...

Mixed Economy: This type of economic system combines the features of both the capitalist and socialist economic systems. The private sector is allowed to function on the principles

Micro, explain main features of short run engineering cost theory

explain main features of short run engineering cost theory

Microeconomics, characteristics of microeconomics

characteristics of microeconomics

Price elasticity of demand, Explain why each of the following factors may i...

Explain why each of the following factors may influence the own price elasticity of demand for a commodity. The narrowness of the definition of the commodity

Exit strategy, Exit Strategy The exit strategy denotes that which inves...

Exit Strategy The exit strategy denotes that which investors in an organizations realize all or elements of their investment, regardless of the organizations success.

Strategic importance of supply chain management, Strategic Importance of Su...

Strategic Importance of Supply Chain Management This describes the scope of supply chain management (SCM), including the management of procurement, logistics and materials. It

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