Only typed answer You are the manager of a monopolistically competitive firm, and your demand and costfunctions are estimated as Q=36-2P and C(Q) = 6 +3Q+Q².a. Find the inverse demand function for your firm's product.P=|0.5 Qb. Determine the profit-maximizing price and level of production.Instructions: Round your response to the nearest penny (two decimal places).Price: $Instructions: Round your response to one decimal place.Quantity:c. Calculate your firm's maximum profits.Instructions: Round your response to the nearest penny (two decimal places).d. What long-run adjustments should you expect? Explain.Exit will occur until profits rise sufficiently high.Neither entry nor exit will occur.Entry will occur until profits are zero.

DISCLAIMER “Since you have asked multiple question, we will solve the first three subparts question…

u are the manager of a monopolistically competitive firm, and your demand and cost. ctions are estimated as Q=36-2P and C(Q)=6+3Q+Q². Find the inverse demand function for your firm's product. 0.5 Q 18 Determine the profit-maximizing price and level of production. structions: Round your response to the nearest penny (two decimal places). ice: $ structions: Round your response to one decimal place. uantity: Calculate your firm's maximum profits. structions: Round your response to the nearest penny (two decimal places). What long-run adjustments should you expect? Explain. Exit will occur until profits rise sufficiently high. ONeither entry nor exit will occur. O Entry will occur until profits are zero.

u are the manager of a monopolistically competitive firm, and your demand and cost. ctions are estimated as Q=36-2P and C(Q)=6+3Q+Q². Find the inverse demand function for your firm's product. 0.5 Q 18 Determine the profit-maximizing price and level of production. structions: Round your response to the nearest penny (two decimal places). ice: $ structions: Round your response to one decimal place. uantity: Calculate your firm's maximum profits. structions: Round your response to the nearest penny (two decimal places). What long-run adjustments should you expect? Explain. Exit will occur until profits rise sufficiently high. ONeither entry nor exit will occur. O Entry will occur until profits are zero.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter18: Asymmetric Information

Section: Chapter Questions

Problem 18.4P

See similar textbooks

Similar questions

You are the manager of a monopolistically competitive firm, and your demand and cost functions are estimated as Q = 48 − 2P and C(Q) = 6 + 3Q + Q2. a. Find the inverse demand function for your firm’s product. P = − Q b. Determine the profit-maximizing price and level of production. Instructions: Round your response to the nearest penny (two decimal places). Price: $ Instructions: Round your response to one decimal place. Quantity: c. Calculate your firm’s maximum profits. Instructions: Round your response to the nearest penny (two decimal places). $ d. What long-run adjustments should you expect? Explain. multiple choice Entry will occur until profits are zero. Exit will occur until profits rise sufficiently high. Neither entry nor exit will occur.
You are the manager of a monopolistically competitive firm, and your demand and cost functions are given by Q = 36 – 4P and C(Q) = 4 + 4Q + Q2. a. Find the inverse demand function for your firm’s product. b. Determine the profit-maximizing price and level of production. c. Calculate your firm’s maximum profits. d. What long-term adjustments should you expect? Explain.
You are the manager of a monopolistically competitive firm, and your demand and cost functions are estimated as Q = 36 − 4P and C(Q) = 4 + 4Q + Q2. a. Find the inverse demand function for your firm’s product. P =____ −_____ Q b. Determine the profit-maximizing price and level of production. Instruction: Price should be rounded to the nearest penny (two decimal places). Price: $_____ Quantity:_____ c. Calculate your firm’s maximum profits. Instruction: Your response should appear to the nearest penny (two decimal places). $______ d. What long-run adjustments should you expect? Explain. multiple choice A. Entry will occur until profits are zero. B. Neither entry nor exit will occur. C. Exit will occur until profits rise sufficiently high.
Suppose a monopolistically competitive firm is in long-run equilibrium. The firm's demand curve is tangent to its average cost curve at Q = 25. Average cost is minimized at Q = 35, where average cost is $50. Which of the following is true? Group of answer choices This firm maximizes profit at an output level of 35 units. This firm maximizes profit at an output level lower than 25 units. This firm maximizes profit at an output level of 25 units. This firm incurs an economic loss in the long run. This firm maximizes profit at an output level greater than 35 units.
You are the manager of a monopolistically competitive firm, and your demand and cost functions are given by Q= 36 - 4P and C(Q)=4+4Q+Q^2. What long-run adjustments should you expect? Explain. What is the value of the consumer surplus (under monopoly)? Calculate the deadweight loss (under monopoly). What is the value of the Lerner Index? Explain what this number means.
You are the manager of a monopolistically competitive firm, and your demand and cost functions are given by Q = 18 – 2P and C(Q) = 2 + 2Q + 0.5Q2. a. Find the inverse demand function for your firm’s product. b. Determine the profit-maximizing price and level of production. c. Calculate your firm’s maximum profits.
You are the manager of a monopolistically competitive firm, and your demand and cost functions are given by Q = 36 − 4P and C(Q) = 4 + 4Q + Q2a. Find the inverse demand function for your firm’s product. b. Determine the profit-maximizing price and level of production. c. Calculate your firm’s maximum profits. d. What long-run adjustments should you expect? Explain
Suppose you are the manager of a monopolistically competitive firm, and your demand and cost functions are given by Q = 36 − 4P and C(Q) = 4 + 4Q + Q2 Find the inverse demand function for your firm’s product. Determine the profit-maximizing price and level of production. Calculate your firm’s maximum profits.
You are the manager of a monopolistically competitive firm and your demand and cost functions are given by Q2 = 10 – (0.1) P2 and C=490 - 50Q + 2.5 Q2 Find the inverse demand function for your firm product Determine the profit maximizing price and level of production Calculate your firm’s surplus and maximum profits
How would a monopolistically competitive firm determine its profit maximizing level of output and price? Group of answer choices 1-The firm would use industry averages to determine the profit maximizing level of output and price. 2-A monopolistically competitive firm could set any output and price level to yield maximum profit because it controls all of the resources. 3-The firm would determine output based on the intersection of marginal cost and marginal revenue, then examine where that output level intersects with the demand curve to determine the price. 4-The firm would determine output based on the intersection of average cost and marginal cost, then examine where that output level intersects with the supply curve to determine the price.
You are the manager of a monopolistic firm, and your demand and cost functions are given by P = 300 − 3Q and TC(Q) = C(Q) = 1,500 + 2Q2, What is the value of the consumer surplus under monopoly? What is the value of the dead weight loss? What is the value of Lerner index? Explain what your result means.
The demand function for a monopolistically competitive firm's product is Q = 100 – 4P, while the firm's cost function is C = 500 + 10Q + 0.5Q2.(a) Determine the firm's equilibrium price and quantity.(b) Is the firm in long-run equilibrium? If not, what is expected to happen in the long run if the firm remains in the industry?