A monopolist faces a demand curve given by Qa= 270 – P and faces a short run total cost function given by TC = 30 + 3q?. а. How much are the firm's fixed costs? Write down an equation for the monopolists' revenue Write down an equation for the monopolists' elasticity of demand d. What is the output level that maximizes the firm's revenue? e. Find the output level that maximizes the monopolists' profits. f. If the monopolist was forced by a regulator to sell its output at marginal cost, how much output would he produce? (Make sure to include your working by typing or photographing your working) b. с.

A monopolist faces a demand curve given by Qa= 270 – P and faces a short run total cost function given by TC = 30 + 3q?. а. How much are the firm's fixed costs? Write down an equation for the monopolists' revenue Write down an equation for the monopolists' elasticity of demand d. What is the output level that maximizes the firm's revenue? e. Find the output level that maximizes the monopolists' profits. f. If the monopolist was forced by a regulator to sell its output at marginal cost, how much output would he produce? (Make sure to include your working by typing or photographing your working) b. с.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter14: Monopoly

Section: Chapter Questions

Problem 14.2P

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Give typing answer with explanation and conclusion A monopolist has a demand curve given by P = 88 − Q and a total cost curve given by TC = 34 + Q2. The associated marginal cost curve is MC = 2Q. Suppose the monopolist also has access to a foreign market in which he can sell whatever quantity he chooses at a constant price of 60. How much will he sell in the foreign market? What will his new quantity and price be in the original market?
A monopolist faces a demand curve given by Qa= 270 – P and faces a short run total cost function given by TC = 30 + 3q?. а. How much are the firm's fixed costs? b. Write down an equation for the monopolists' revenue с. Write down an equation for the monopolists' elasticity of demand d. What is the output level that maximizes the firm's revenue? e. Find the output level that maximizes the monopolists' profits. f. If the monopolist was forced by a regulator to sell its output at marginal cost, how much output would he produce? (Make sure to include your working by typing or photographing your working)
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