a). Given the demund function Q= 700 - 2P + 0.02Y. where P 25 and Y 5000. Find the price and income elasticity of demand. (Smarka). b). Find the profit-maximising level of (1) output, (i) price and fin) total profit for the monopolistie producer with the following demand function. P-74-1.5Q P- 72-20
a). Given the demund function Q= 700 - 2P + 0.02Y. where P 25 and Y 5000. Find the price and income elasticity of demand. (Smarka). b). Find the profit-maximising level of (1) output, (i) price and fin) total profit for the monopolistie producer with the following demand function. P-74-1.5Q P- 72-20
Chapter14: Monopoly
Section: Chapter Questions
Problem 14.5P
Related questions
Question
Transcribed Image Text:Question 1.
a). Given the denand function Q = 700 - 2P+0.02Y. where P = 23 aznd Y= 5000. Find the price and incone
elasticity of demand (Gmarka).
b). Find the profit-maximising level of (1) output, (i) price and (in) total profit for the monopolistie producer
with the following demand funetion.
P=74-15Q
Pz = 72-2Q:
The joint cost function in given by C= Qf +20Q: + Qi + 120 (6marks)
e). For the following profit function. find the critical values, ue both the first and second order conditions to check
whether or not the citical values give rise to maximum er minimum points and find the maximum profit (7marka)
o-s0 + 3600 - 100
d) A discriminating monopoly producing a single product decides to, mell his product in two marketa. The profit
funetion for the monopoly is given by:
= 45Q. - Q + 6Q, - no - 10
Find the levels of Q, and Qa that will natisfy the first order condition for profit maximisation. Is the second order
condition for profit maximisation satistied?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
