A single-price monopolist faces an inverse market demand curve given as P (Q) = 100 − Q. The firm's total cost curve is C (Q) = 100 + 40Q + 1Q2. a. What are the equilibrium price and quantity in this market? (Find the profit maximizing quantity and price) (Round your answer to two decimal places and use it in the following parts) b. What are the firm's economic profits and economic rents? (Round your answer to two decimal places) c. What is the deadweight loss of this monopoly? (Round your answer to two decimal places

A single-price monopolist faces an inverse market demand curve given as P (Q) = 100 − Q. The firm's total cost curve is C (Q) = 100 + 40Q + 1Q2. a. What are the equilibrium price and quantity in this market? (Find the profit maximizing quantity and price) (Round your answer to two decimal places and use it in the following parts) b. What are the firm's economic profits and economic rents? (Round your answer to two decimal places) c. What is the deadweight loss of this monopoly? (Round your answer to two decimal places

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Monopoly

Section: Chapter Questions

Problem 3.4P

See similar textbooks

Similar questions

QUESTION 1 A. The total cost function for a monopolist is given by TC = 44,000 + 180Q + 0.03Q² and the demand function is P = 420 – 0.06Q per unit of output. i. What is the profit maximising level of output? ii. Calculate the profit maximizing price. iii. Calculate total profit at the profit maximising level of output.
Blue INK is the only cabel service provider in Gazipur. The diagram below depicts the price, output and costs incurred by Blue INK. Use the graph to answer the following questions: 1. What is the Total revenue generated by Blue INK at the profit maximizing level of output? 2. If the Cable Service Market turns into a Perfectly Competitive Market, what will be the total ammount of the service provided? 3. If the market turns into a Monopoly market again, what will be the total deadweight loss created?
hey how are you a)Draw the cost curves for a typical firm. Explain how a competitive firm chooses the level of output that maximizes profit. At that level of output, show on your graph the firm’s total revenue and total cost. b)Draw the demand curve, marginal revenue curve, average total cost curve, and marginal-cost curve for a monopolist. Show the profit-maximizing level of output, the profit-maximizing price, and the amount of profit. c)Why the demand curve for a firm operating in monopolistic competition is more elastic compared to the firm operating as a monopoly.
Inverse demand for aglets (the plastic wrap on the end of the shoelaces) is given by the expression: P=1-Q/20,000. Further suppose the the marginal cost of producing aglets is constant at $0.01. What are the equilibrium price and quantity in a competitive market? What are the equilibrium price and quantity as well as profit in monopolistic market? What is the deadweight loss?
How much is total surplus if the market is perfectly competitive?How much is total surplus if the market is controlled by a single price monopolist?Suppose the single price monopolist started charging all customers the maximum price they are willing to pay. How much additional surplus is created?
How does price discrimination play a role in the economy?How does the idea of price discrimination apply to an industry?
A perfectly competitive firm is expected to make a $0 economic profit in the long-run. What type(s) of profit would you expect a monopolist to earn in the long-run? Why the difference? Use the editor to format your answer
The graph below shows the Market conditions of Honey’s Laundry service, which is the only laundry in Arizon Residential Area. Considering the shop as a Monopoly market, answer the following questions: (a)In order to maximize profit, how many clothes does the shop clean?[Answer in numerical value only without any unit] (b)If the opening of five new laundries turns it into a perfectly competitive market, what should be the price Sunny’s laundry be charging now?[Answer in numerical value only without any unit] (c)Compute the change in total revenue between part a and part b.[Answer in numerical value only without any unit] Note: Bartleby does not accept more than 3 sub-parts, and here are no more than 3. Please solve all parts to get a 'like'. Thanks
Suppose you are a monopolist in the market for a specific Q video game. Your demand curve is given by P = 80- - and 2 your marginal cost curve is MC = Q. Your fixed cost is $400. i) Derive the marginal revenue curve. ii) Calculate the equilibrium price and quantity. iii) What is the profit?
Concept Question 3.15 Question Help The following table shows demand and marginal cost for a monopolist. Calculate marginal revenue (MR) at each quantity. (Enter your response as an integer.) Output (units) (Q) Price per Unit (P) 20 Marginal Revenue (MR) Marginal Cost (MC) 1 18 2 16 4 3 14 6. 12 8 10 10
Draw the cost curves for a typical firm. Explain how a competitive firm chooses the level of output that maximizes profit. At that level of output, show on your graph the firm’s total revenue and total cost. Draw the demand curve, marginal revenue curve, average total cost curve, and marginal-cost curve for a monopolist. Show the profit-maximizing level of output, the profit-maximizing price, and the amount of profit. Why the demand curve for a firm operating in monopolistic competition is more elastic compared to the firm operating as a monopoly
Draw the cost curves for a typical firm. Explain how a competitive firm chooses the level of output that maximizes profit. At that level of output, show on your graph the firm’s total revenue and total cost. Draw the demand curve, marginal revenue curve, average total cost curve, and marginal-cost curve for a monopolist. Show the profit-maximizing level of output, the profit-maximizing price, and the amount of profit. Why the demand curve for a firm operating in monopolistic competition is more elastic compared to the firm operating as a monopoly. kindly solve all the parts.