The inverse demand curve a monopoly faces is   p=120−Q.   The​ firm's cost curve is   C(Q)=20+5Q.   Part 2   What is the​ profit-maximizing solution?   The​ profit-maximizing quantity is

Economics:
10th Edition
ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter23: Profit Maximization
Section: Chapter Questions
Problem 13E
icon
Related questions
Question

4

 

 

The inverse demand curve a monopoly faces is

 

p=120−Q.

 

The​ firm's cost curve is

 

C(Q)=20+5Q.

 

Part 2

 

What is the​ profit-maximizing solution?

 

The​ profit-maximizing quantity is

 

57.557.5.

 

​(Round your answer to two decimal​ places.)

 

The​ profit-maximizing price is

 

​$62.562.5.

 

​(round your answer to two decimal​ places.)

 

Part 3

 

What is the​ firm's economic​ profit?

 

The firm earns a profit of

 

​$enter your response here.

 

​(round your answer to two decimal​ places.)

Expert Solution
steps

Step by step

Solved in 4 steps

Blurred answer
Knowledge Booster
Monopoly
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
Economics:
Economics:
Economics
ISBN:
9781285859460
Author:
BOYES, William
Publisher:
Cengage Learning
Microeconomics A Contemporary Intro
Microeconomics A Contemporary Intro
Economics
ISBN:
9781285635101
Author:
MCEACHERN
Publisher:
Cengage
Microeconomics: Principles & Policy
Microeconomics: Principles & Policy
Economics
ISBN:
9781337794992
Author:
William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:
Cengage Learning
Principles of Microeconomics
Principles of Microeconomics
Economics
ISBN:
9781305156050
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Microeconomics (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:
9781305971493
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning