Assume the following equations describe the conditions for an unregulated monoply: Qd = q = 160,000 - 2,500P TC = 400,000 +22q + 0.0001q2 where Qd is the quantity demanded for both the market and the firm, P is the commodity's price in dollars, TC is total cost in dollars, and q is the quantity of output produced by the firm. Based upon the above 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? Assume the total cost function and the market demand remain unchanged. The equations are: Qd = q = 160,000 - 2,500P TC = 400,000 +22q + 0.0001q2 The monopolist now engages in first-degree price discrimination. e. What quantity of output will maximize the monopolist's profit given first-degree price discrimination? f. What will the monopolist's total profit equal given first-degree price discrimination?

Assume the following equations describe the conditions for an unregulated monoply: Qd = q = 160,000 - 2,500P TC = 400,000 +22q + 0.0001q2 where Qd is the quantity demanded for both the market and the firm, P is the commodity's price in dollars, TC is total cost in dollars, and q is the quantity of output produced by the firm. Based upon the above 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? Assume the total cost function and the market demand remain unchanged. The equations are: Qd = q = 160,000 - 2,500P TC = 400,000 +22q + 0.0001q2 The monopolist now engages in first-degree price discrimination. e. What quantity of output will maximize the monopolist's profit given first-degree price discrimination? f. What will the monopolist's total profit equal given first-degree price discrimination?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter16: Labor Markets

Section: Chapter Questions

Problem 16.5P

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