2. A profit-maximizing monopoly produces 50 unitsper day. Which of the followingstatement is correct? (Evaluate each statementseparately; do not mix several at the same time)If the profit is SEK 75,000 per day, themonopoly price must be SEK 1,500 per unit.If the company's total costs are SEK100,000 per day and the fixed costs2b (is SEK 20,000 per day, the company's averagevariable cost is SEK 1,600 per unit.2c If the firm's profit-maximizing quantity is50 units per day, then the demandown price elasticity at this quantity greater than – 1.2a

Monopoly refers to a market structure in which a single firm or entity has complete control over the…

2. A profit-maximizing monopoly produces 50 units per day. Which of the following statement is correct? (Evaluate each statement separately; do not mix several at the same time) If the profit is SEK 75,000 per day, the monopoly price must be SEK 1,500 per unit. If the company's total costs are SEK 2b ( 100,000 per day and the fixed costs is SEK 20,000 per day, the company's average variable cost is SEK 1,600 per unit. 2c If the firm's profit-maximizing quantity is 50 units per day, then the demand own price elasticity at this quantity greater than - 1. 2a

2. A profit-maximizing monopoly produces 50 units per day. Which of the following statement is correct? (Evaluate each statement separately; do not mix several at the same time) If the profit is SEK 75,000 per day, the monopoly price must be SEK 1,500 per unit. If the company's total costs are SEK 2b ( 100,000 per day and the fixed costs is SEK 20,000 per day, the company's average variable cost is SEK 1,600 per unit. 2c If the firm's profit-maximizing quantity is 50 units per day, then the demand own price elasticity at this quantity greater than - 1. 2a

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter9: Monopoly

Section: Chapter Questions

Problem 32P: Draw the demand curve, marginal revenue, and marginal cost curves from Figure 9.6, and identify the...

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In what sense is a natural monopoly natural?
Draw the demand curve, marginal revenue, and marginal cost curves from Figure : , and identify the quantity of output the monopoly wishes to supply and the price it will charge. Suppose the demand for the monopoly’s product increases dramatically. Draw the new demand curve. What happens to the marginal revenue as a result of the increase in demand? What happens to the marginal cost curve? Identify the new profit-maximizing quantity and price. What do you think about the result? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
You are the manager of a monopoly, and your analysts have estimated your demand and cost functionsas P = 300 − 3Q and C(Q) = 2, 000 + 2Q2, respectively.(a) What price-quantity combination maximizes your firm’s profits?(b) Calculate the maximum profits.(c) Is demand elastic, inelastic, or unit elastic at the profit maximizing price-quantity combination?(d) What price-quantity combination maximizes revenue?(e) Calculate the maximum revenues.(f) Is demand elastic, inelastic, or unit elastic at the revenue maximizing price-quantity combination?
1.) You are the manager of a monopoly, and your demand and cost functions are given by P = 200 − 2Q and C(Q) = 1,400 + 2Q2, respectively. a. What price-quantity combination maximizes your firm's profits? b. Calculate the maximum profits. c. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price-quantity combination? 2.) Determine the profit-maximizing output and price, and discuss its implications, if: 1. You are a monopolistically competitive firm and the inverse demand is P = 100 - Q and your cost is C(Q) = 125 + 4Q2 2. You are a monopoly and the inverse demand is P = 200 - Q and your cost is C(Q) = 150 + 4Q2 3.) Suppose the inverse demand function for two Cournot duopolists is given by P = 10 - (Q1 + Q2) and their costs are zero. A. What is each firm's marginal revenue and reaction functions? B. Determine the Cournot equilibrium outputs and equilibrium price. What is the implication of this model?