
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Transcribed Image Text:40. The monthly demand function for x units of a product
sold by a monopoly is p= 5900 - x dollars, and its
average cost is C = 3020 + 2x dollars. If production
is limited to 100 units, find the number of units that
%3D
%3D

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- A company operates two plants which manufacture the same item and whose total cost functions are C₁ = 5.5 +0.01(9₁)² and C₂ M 8.2 +0.08(92)². where q, and q2 are the quantities produced by each plant. The company is a monopoly. The total quantity demanded, q = 91 +92. is related to the price, p, by p= 40 -0.08q. How much should each plant produce in order to maximize the company's profit?¹ 91 = 92 = i MAarrow_forwardOnly typed answer A monopoly has an inverse demand function given by p = 480 – 4Q and a constant marginal cost of 40. Calculate the deadweight loss if the monopoly charges the profit-maximizing price.arrow_forward19 7+ 5+ 3+ 1- 20 40 60 80 MR MC A 100 Qarrow_forward
- Assume the following equations describe the conditions for a monopoly: Qd = 2,000 - 100P TC = 3,500 + 5q + .005q2 Where Qd is the quantity demanded, P is the commodity's price in dollars, TC is the firm's total cost in dollars and q is the quantity of output produced. Based upon these equations, answer the following questions: a. What is the firm's equation for total revenue expressed as a function of quantity? b. What is the firm's equation for marginal revenue expressed as a function of quantity? What is the firm's equation for marginal cost expressed as a function of quantity? c. What is the firm's profit maximizing quantity of output? d. What price will the firm charge for the commodity? e. What would be the socially optimal quantity of output? f. What price would regulators have to establish in order to have the firm produce the socially optimal quantity of output?arrow_forwardCompany XYZ has a monopoly in its market for one of its' products and it serves 3 regional markets with regional demand functions given by. • Market 1: Q1 = 9 – (0.05) P1 • Market 2: Q2 = 10 – (0.1) P2 • Market 3: Q3 = 16 – (0.2) P3 The firm must make more than 10 units: Q > 10. The firm's cost function is C=490-50Q+2.5 Q2. The marginal cost is the same across all markets. Use Excel to set up this problem and: a) Identify the profit-maximizing output values for each market. b) Identify the surplus for each market and profit for the entire market. c) The output, price, and profit if the firm were not to differentiate across the markets? -arrow_forwardG.237.arrow_forward
- A company operates two plants which manufacture the same item and whose total cost functions are C₁ = 5.8 +0.03(91)² and C₂ = 7.3 + 0.04(92)², where 9₁ and 92 are the quantities produced by each plant. The company is a monopoly. The total quantity demanded, q = 91 +92, is related to the price, p, by P = 400.04q. How much should each plant produce in order to maximize the company's profit?¹ 91 = 92 = i ! !arrow_forwardA monopoly faces the following TR and TC schedules: TR = 300q – 2q² TC = 12q' – 44q + 60q + 30 %3D %3D What output should it sell to maximize profit?arrow_forwardPlease refer to the figure above. When MC is constant, the ATC is also constant. How much profit the monopolist will make?arrow_forward
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