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

Estimating the educational structure, Estimating the Educational Structure ...

Estimating the Educational Structure of the Labour Force in the Economy for the Target Year The educational levels of persons within each occupational structure for the base y

Calculate profit maximizing output level , Qustions: You are the sales ...

Qustions: You are the sales manager at SoftSystem, a dominant firm that produces operating system. The new operating system, Doors XR, has been newly developed. Its demand is e

Consumer theory, what are the similarities and differences of marginal prod...

what are the similarities and differences of marginal productivity and marginal utility

Effects of inflation, Effects of inflation: On Income Earners:Those on...

Effects of inflation: On Income Earners:Those on fixed incomes or assets (fixed in nominal terms) lose. However, those on incomes, which are directly related to the price leve

Expected value, Expected Value - The weighted average of payoffs or val...

Expected Value - The weighted average of payoffs or values resulting from all the possible outcomes. The probabilities of every outcome are used as weights Expected

Economics 6th edition, What is the theory of absolute and comparative adva...

What is the theory of absolute and comparative advantage?

Demand and suply, draw the following diagrams and explain their shapes: the...

draw the following diagrams and explain their shapes: the production possibilities frontier a demand curve the demand curve for a firm in perfect competition the demand curve for a

Elasticities of demand, The price of a laptop increases by 20% and there is...

The price of a laptop increases by 20% and there is a 40% drop in the quantity demanded.

PPC, could a nations production possibilities curve ever shift inward

could a nations production possibilities curve ever shift inward

Origin of sylos labini''''s limit pricing model, write about the origin of ...

write about the origin of sylos labini''s limit pricing model

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