Suppose that there is a firm which has a monopoly and price per unit P(Q) with the quantity Q is given s.t: P(Q) = 100 – Q, Q E [0,300] and the cost function is 1000 C(Q) = 03 -Q² + 50Q + Find the production level that maximizes profit. 3 600
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![Suppose that there is a firm which has a monopoly and price per unit P(Q) with
the quantity Q is given s.t: P(Q) = 100 – Q, Q E [0,300] and the cost function is
%3D
1000
C(Q) = Q3 -0² + 50Q +
. Find the production level that maximizes profit.
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- The Spacing Guild has a monopoly on space transport. They sell tickets(Q) for seats on starships for interstellar travel at a per-ticket price of P. Alltickets cost the same. If the Marginal Cost for each seat is $16 and Market demand is Q=494-4P, what is the market ticket PRICE the Guild chooses?Assume a monopoly has two groups of customers, and each group of customers has different demand for the firm's product. Group A's demand is: Pa = 90 - .1qa where qa is group A's quantity demanded and Pa is the commodity's price in dollars for group A customers. Group B's demand is: Pb = 170 - .2qb where qb is group B's quantity demanded and Pb is the commodity's price in dollars for group B customers. The firm's total cost curve is: TC = 30,000 + .05q2 where TC is the firm's total cost in dollars and q is the total quantity of output produced by the firm. Based upon the above equations, answer the following questions: a. What quantity of the commodity would the firm sell to customers in group B? What price would the firm establish for customers in group B? b. What quantity of the commodity would the firm sell to customers in group A? What price would the firm establish for customers in group A?The demand and total cost functions for a monopoly firm are: Q(P) = 39.5 – 0.5P TC(Q) = 60 – Q + 0.5 Q² What would be the socially optimal Q* and P* (round to 1 decimal place if needed
- Consider a monopoly with demand P= 7000-Q The cost function for the firm operating in this market is C(Q)-Q2 Find the deadweight loss from this monopoly. Round to the nearest 100th.As the manager of a monopoly, you face potential government regulation. Your inverse demand is P = 25 − 2Q, and your costs are C(Q) = 5Q. a. Determine the monopoly price and output. Monopoly price: $ Monopoly output: units b. Determine the socially efficient price and output. Socially efficient price: $ Socially efficient output: units c. What is the maximum amount your firm should be willing to spend on lobbying efforts to prevent the price from being regulated at the socially optimal level? $The Spacing Guild has a monopoly on space transport. They sell tickets(Q) for seats on starships for interstellar travel at a per-ticket price of P. Alltickets cost the same. If the Marginal Cost for each seat is $15 and Market demand is Q=338-3P, what is the market ticket QUANTITY the Guild chooses?
- Lynch Enterprises has a monopoly in the production of dehumidifiers. Its factory is located in Spanish Town. There is no other industry in Spanish Town, and the labor supply equation there is W=10+0.1L, where W is the daily wage and L is the number of person-days of work performed. Dehumidifiers are produced with a production function, Q=10L, where L is daily labor supply and Q is daily output. The demand curve for dehumidifiers is P=41−Q/1,000, where P is the price and Q is the number of sales per day. What is the price of dehumidifiers? Select one: a. 31 b. 11 c. 10 d. 100Suppose a certain city has a monopoly cable-television company. This company has total costs TC = 0.25Q2 + 30Q + 70. (Hint: using calculus, this means MC = 0.5Q+ 30since MC is the derivative of TC with respect to output.) The demand in the community is approximated by the equationQd = 60- P/2(alternatively, you can write the demand equation as Qd = 60–0.5P). Graphically depict the demand curve as well as the marginal cost (MC) curve. If the cable company is free to choose its own pricePm and quantityQm, graphically depictthe monopoly equilibrium price and quantity. Add any other curve(s) to your diagram that may be required to obtain this outcome. Compute and state the exact monopolist equilibrium pricePm and quantityQm that you depicted graphically.The Spacing Guild has a monopoly on space transport. They sell tickets(Q) for seats on starships for interstellar travel at a per-ticket price of P. Alltickets cost the same. If the Marginal Cost for each seat is $16 and Market demand is Q=404-5P, what is the MARGINAL REVENUE the Guild gets from the 25thticket?
- Suppose a competitive market with the inverse demand p = 100 - q. An innovation reduces the constant marginal production cost from 75 to 60. A) Determine the price set by a monopoly using the innovation. B) Determine the minimal reduction in marginal cost for the innovation to be drastic.True or False, and why? If the demand curve is denoted by PDX = 100 – 0.5 X while the MC = 2 +1.5 X monopoly will result in a welfare loss of 96.04 compared with a competitive market.If, in a monopoly market, the demand for a product is p = 195 − 0.10x and the revenue function is R = px, where x is the number of units sold, what price will maximize revenue? (Round your answer to the nearest cent.)
