The monopolist faces the demand curve D(p) = 100 – 2p. Its cost function is c(y) = 2y. What is your optimal level of production and prices? Solve mathematically and graph
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The monopolist faces the demand curve D(p) = 100 – 2p. Its cost function is c(y) = 2y. What is your optimal level of production and prices? Solve mathematically and graph
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- Consider a monopolistic market with demand function: P = 36 – 0.5Q The monopolist’s marginal cost (MC) and total cost (TC) function are: MC = $2 TC = 4 + 2Q How much total economic profit does the monopolist earn?Acme is a monopolist for a good with inverse demand P = 4000 – 6Q, where P is the price in dollars and Q is the amount sold. Acme's variable costs are TVC(Q) = 4Q². With these functions, the marginal revenue is MR(Q) = 4000 – 12Q and marginal cost is MC(Q) = 8Q. a) If Acme has no fixed costs, what is its profit maximizing price? b) If Acme has non-sunk fixed costs of $700,000, is it worth operating or should they shut down?A monopolist has a cost function given by c(y) = y2 and faces a demand curve given by P(y) = 120 - y. What is the profit maximizing level?
- A monopolist has discovered that the inverse demand function of a person with income Y for the monopolist’s product is P = 0.002Y-Q where P is the price, Y the income, and Q is the output. The monopolist can observe the incomes of its consumers and hence vary its price accordingly. The monopolist has a total cost function C(Q) = 100Q. A. Calculate the profit maximising price as a function of the consumer’s income Y carefully explaining all the steps in the derivation of the formula. B. A monopolist has a constant marginal cost of £2 per unit and no fixed costs. He faces two separate markets in the United States and in the UK. The goods sold in one market are never resold in the other. He sets one price P1 for the US market and another price P2 for the UK market (both measured in £). The demand in the United States is given by Q1=7,000-700P1 and the demand in the UK is given by Q2=1,200-200P1. Calculate the profit maximising output produced and price charged in each country by the…Your mom is the monopoly supplier of jokes in (humorless) Ho Hum. She faces a demand curve and a marginal cost curve given by following equations Demand: Q = 100 – 0.19P jokes per day Marginal Cost: MC= 80 dollars per joke Assume that jokes are perfectly divisible.the monopolist faces a demand curve given by D(p)=50-p. its cost function is c(y)=y. what is its optimal level of output and prices?
- A monopolist has a cost function given by c(y)=y2 and faces a demand curve given by P(y)=120-y. What is the profit maximizing level of output?Suppose you are a monopolist in the market for a specific Q video game. Your demand curve is given by P = 80- - and 2 your marginal cost curve is MC = Q. Your fixed cost is $400. i) Derive the marginal revenue curve. ii) Calculate the equilibrium price and quantity. iii) What is the profit?Will the monopolist produce an output level that is technically efficient?
- A monopoly produces widgets at a marginal cost of $10 per unit and zero fixed costs. It faces an inverse demand function given by P = 50 - Q. What is the profit under monopoly?Will the monopolist produce an output level that is allocatively efficient?A monopolist's demand function is given by D(p) = 90 – 2p. This - monopolist is facing a cost function, C(y) = (1/2)y² + 600. (a) Is this a natural monopoly? Explain. (b) How can government regulate this monopolist to produce the efficient amount of products?
