A monopolist’s market demand curve and marginal revenue is given as Q = 70 − P and M R = 70 − 2 Q respectively. The output level of the firm that can be chosen to get maximize profit and the price and the profit at this condition is to be calculated.

Question

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Answer 1

Question

Chapter 11, Problem 11.2P

a)

To determine

A monopolist’s market demand curve and marginal revenue is given as Q=70−P and MR=70−2Q respectively. The output level of the firm that can be chosen to get maximize profit and the price and the profit at this condition is to be calculated.

b)

To determine

The price quantity combination chosen for profit maximization when the total cost described by TC=0.25Q2−5Q+300 and the marginal cost is given by MC=0.5Q−5 is to be determined.

c)

To determine

The monopolist’s price-quantity combination, profits earned that maximizes profits under a total cost, TC=0.01Q3−Q2+45Q+100 and a marginal cost MC=0.03Q2−2Q+45 is to be calculated.

d)

To determine

The market demand curve, the marginal revenue curve and the three marginal cost curves from part a, b and c is to be drawn. The following conditions such as (1) it faces market demand curve and (2) the cost structure underlying constraints the profit making ability.

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Answer 2

Question

Chapter 11, Problem 11.2P

a)

To determine

A monopolist’s market demand curve and marginal revenue is given as Q=70−P and MR=70−2Q respectively. The output level of the firm that can be chosen to get maximize profit and the price and the profit at this condition is to be calculated.

b)

To determine

The price quantity combination chosen for profit maximization when the total cost described by TC=0.25Q2−5Q+300 and the marginal cost is given by MC=0.5Q−5 is to be determined.

c)

To determine

The monopolist’s price-quantity combination, profits earned that maximizes profits under a total cost, TC=0.01Q3−Q2+45Q+100 and a marginal cost MC=0.03Q2−2Q+45 is to be calculated.

d)

To determine

The market demand curve, the marginal revenue curve and the three marginal cost curves from part a, b and c is to be drawn. The following conditions such as (1) it faces market demand curve and (2) the cost structure underlying constraints the profit making ability.

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Answer 3

Question

Chapter 11, Problem 11.2P

a)

To determine

A monopolist’s market demand curve and marginal revenue is given as Q=70−P and MR=70−2Q respectively. The output level of the firm that can be chosen to get maximize profit and the price and the profit at this condition is to be calculated.

b)

To determine

The price quantity combination chosen for profit maximization when the total cost described by TC=0.25Q2−5Q+300 and the marginal cost is given by MC=0.5Q−5 is to be determined.

c)

To determine

The monopolist’s price-quantity combination, profits earned that maximizes profits under a total cost, TC=0.01Q3−Q2+45Q+100 and a marginal cost MC=0.03Q2−2Q+45 is to be calculated.

d)

To determine

The market demand curve, the marginal revenue curve and the three marginal cost curves from part a, b and c is to be drawn. The following conditions such as (1) it faces market demand curve and (2) the cost structure underlying constraints the profit making ability.

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Answer 4

Question

Chapter 11, Problem 11.2P

a)

To determine

A monopolist’s market demand curve and marginal revenue is given as Q=70−P and MR=70−2Q respectively. The output level of the firm that can be chosen to get maximize profit and the price and the profit at this condition is to be calculated.

b)

To determine

The price quantity combination chosen for profit maximization when the total cost described by TC=0.25Q2−5Q+300 and the marginal cost is given by MC=0.5Q−5 is to be determined.

c)

To determine

The monopolist’s price-quantity combination, profits earned that maximizes profits under a total cost, TC=0.01Q3−Q2+45Q+100 and a marginal cost MC=0.03Q2−2Q+45 is to be calculated.

d)

To determine

The market demand curve, the marginal revenue curve and the three marginal cost curves from part a, b and c is to be drawn. The following conditions such as (1) it faces market demand curve and (2) the cost structure underlying constraints the profit making ability.

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Answer 5

Chapter 11, Problem 11.2P

a)

To determine

A monopolist’s market demand curve and marginal revenue is given as Q=70−P and MR=70−2Q respectively. The output level of the firm that can be chosen to get maximize profit and the price and the profit at this condition is to be calculated.

b)

To determine

The price quantity combination chosen for profit maximization when the total cost described by TC=0.25Q2−5Q+300 and the marginal cost is given by MC=0.5Q−5 is to be determined.

c)

To determine

The monopolist’s price-quantity combination, profits earned that maximizes profits under a total cost, TC=0.01Q3−Q2+45Q+100 and a marginal cost MC=0.03Q2−2Q+45 is to be calculated.

d)

To determine

The market demand curve, the marginal revenue curve and the three marginal cost curves from part a, b and c is to be drawn. The following conditions such as (1) it faces market demand curve and (2) the cost structure underlying constraints the profit making ability.

Answer 6

Chapter 11, Problem 11.2P

a)

To determine

A monopolist’s market demand curve and marginal revenue is given as Q=70−P and MR=70−2Q respectively. The output level of the firm that can be chosen to get maximize profit and the price and the profit at this condition is to be calculated.

Answer 7

Chapter 11, Problem 11.2P

a)

To determine

A monopolist’s market demand curve and marginal revenue is given as Q=70−P and MR=70−2Q respectively. The output level of the firm that can be chosen to get maximize profit and the price and the profit at this condition is to be calculated.

Answer 8

b)

To determine

The price quantity combination chosen for profit maximization when the total cost described by TC=0.25Q2−5Q+300 and the marginal cost is given by MC=0.5Q−5 is to be determined.

Answer 9

b)

To determine

The price quantity combination chosen for profit maximization when the total cost described by TC=0.25Q2−5Q+300 and the marginal cost is given by MC=0.5Q−5 is to be determined.

Answer 10

c)

To determine

The monopolist’s price-quantity combination, profits earned that maximizes profits under a total cost, TC=0.01Q3−Q2+45Q+100 and a marginal cost MC=0.03Q2−2Q+45 is to be calculated.

Answer 11

c)

To determine

The monopolist’s price-quantity combination, profits earned that maximizes profits under a total cost, TC=0.01Q3−Q2+45Q+100 and a marginal cost MC=0.03Q2−2Q+45 is to be calculated.

Answer 12

d)

To determine

The market demand curve, the marginal revenue curve and the three marginal cost curves from part a, b and c is to be drawn. The following conditions such as (1) it faces market demand curve and (2) the cost structure underlying constraints the profit making ability.

Answer 13

d)

To determine

The market demand curve, the marginal revenue curve and the three marginal cost curves from part a, b and c is to be drawn. The following conditions such as (1) it faces market demand curve and (2) the cost structure underlying constraints the profit making ability.

Answer 14

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Answer 15

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Answer 16

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Answer 17

Ch. 11.2 - Prob. 1TTA Ch. 11.2 - Prob. 2TTA Ch. 11.2 - Prob. 1MQ Ch. 11.2 - Prob. 2MQ Ch. 11.2 - Prob. 1.1MQ Ch. 11.2 - Prob. 2.1MQ Ch. 11.3 - Prob. 1MQ Ch. 11.3 - Prob. 1TTA Ch. 11.3 - Prob. 2TTA Ch. 11.4 - Prob. 1TTA

A monopolist’s market demand curve and marginal revenue is given as Q = 70 − P and M R = 70 − 2 Q respectively. The output level of the firm that can be chosen to get maximize profit and the price and the profit at this condition is to be calculated.

Solution Summary: The author analyzes the marginal revenue and marginal cost of producing an extra unit to determine a monopolist's profit maximization price and quantity.

Concept explainers

A monopolist’s market demand curve and marginal revenue is given as Q=70−P and MR=70−2Q respectively. The output level of the firm that can be chosen to get maximize profit and the price and the profit at this condition is to be calculated.

The price quantity combination chosen for profit maximization when the total cost described by TC=0.25Q2−5Q+300 and the marginal cost is given by MC=0.5Q−5 is to be determined.

The monopolist’s price-quantity combination, profits earned that maximizes profits under a total cost, TC=0.01Q3−Q2+45Q+100 and a marginal cost MC=0.03Q2−2Q+45 is to be calculated.

The market demand curve, the marginal revenue curve and the three marginal cost curves from part a, b and c is to be drawn. The following conditions such as (1) it faces market demand curve and (2) the cost structure underlying constraints the profit making ability.

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