Dayna’s Doorstops, Inc. (DD), is a monopolist in the doorstop industry. Its cost is C = 100 - 5Q + Q2, and demand is P = 55 - 2Q. a. What quantity should DD set to maximize pro
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Dayna’s Doorstops, Inc. (DD), is a monopolist in the doorstop industry. Its cost is C = 100 - 5Q + Q2, and demand is P = 55 - 2Q. a. What quantity should DD set to maximize profit?
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- Exercise 3.8. Dayna's Doorstops, Inc. (DD) is a monopolist in the doorstop industry. Its cost is C = 100 - 5Q + Q², and demand is P = 55 - 2Q. a) What price should DD set to maximize profit? What output does the firm produce? How much profit and consumer surplus does DD generate? b) What would output be if DD acted like a perfect competitor and set MC = P? What profit and consumer surplus would then be generated? c) What is the deadweight loss from monopoly power in part (a)? d) Suppose the government, concerned about the high price of doorstops, sets a maximum price at $27. How does this affect price, quantity, consumer surplus, and DD's profit? What is the resulting deadweight loss? e) Now suppose the government sets the maximum price at $23. How does this decision affect price, quantity, consumer surplus, DD's profit, and deadweight loss? f) Finally, consider a maximum price of $12. What will this do to quantity, consumer surplus, profit, and deadweight loss?for a monopolistic firm, its demands is p=200- 0.25Q while MR =200-0.5Q if its MC=20 how much it should produce to maximize its profit? for a monopolistic firm, its demands is p=200- 0.25Q while MR =200-0.5Q if its MC=20 how much the firm should charge? for a monopolistic firm, its demands is p=200- 0.25Q while MR =200-0.5Q if its MC=20 calculate its maximizing profitSuppose a company creates its own differentiated type of sneaker and is thus considered a monopolistically competitive firm. This firm has a constant marginal cost curve. For each unit of output that the monopolistically competitive firm produces, it costs an additional $50. The firm's marginal revenue curve is MR=200−30Q, where Q is the quantity produced. The firm's perceived demand curve is P=200−15Q. What is the monopolistically competitive firm's profit-maximizing output and price?
- The price elasticity of demand for a monopolistic firm's product is given by 0.3 p 8-0.6 p najp == (a) If the firm raises their price from po = $64.00 to p₁= $65.00, then the demand for their good will... [Select] (b) The firm's marginal revenue is maximized when they set their price to... [Select]How many units of Rogaine will the firm decide to sell?Why?What price will the monopolist charge for each unit? How much profit does he make in total? Include a graph in your answer (it does not need to be to scale, but should be clearly labeled). Needed info in picture belowFor a monopolistic firm, its demand is P 200 - 0.25Q while MR = 200-0.5Q, if its MC = ATC = 20, calculate its maximized profit
- For a monopolistically competitive firm, marginal revenue is equal to price. is this true or falseRaphael's hair salon is a monopoly in a small town and is currently earning an economic profit. Assume that new hair salons enter the market and that the market becomes monopolistically competitive. a) The entry of new hair salons creates close substitutes for each individual salon's services. As a result, will the demand for Raphael's hair salon become more elastic or become less elastic, or will there be no change in the elasticity? b) Will the entry cause the demand curve for Raphael's haircuts to shift to the left, shift to the right, or stay the same?Consider a monopolistically competitive market with N firms. Each firm's business opportunities are described by the following equations: Demand: Q=100/N-P Marginal Revenue: MR=100/N-2Q Total Cost: TC=50+Q2 Marginal Cost: MC=2Q a. How does N, the number of firms in the market , affect each firms demand curve? Why? b. How many units does each firm produce? (The answer to this and the next two questions depend on N) c. What price does each firm charge? d. How much profit does each firm make? e. In the long run, how many firms will exist in this market?
- A pure monopolistic firm knows the following about its costs and revenue. The firm would like to maximize profit and has hired consultant for advice. Price Q of Output Total Revenue Total Cost Total Fixed Cost 13 700 TR? TC? 3,100 Average Total Cost Average Variable Cost MC MR 26 AVC? : Total Cost Number Total Revenue Number Average Variable Cost Number What is the value of the profit or loss (-) at the current output ( include the - sign if it's a loss) Number Consultant's Advice: As a consultant, what advice would you give to this firm:(Choose ONE answer from the following) 1. Firm is profit maximizing/loss minimizing 2. Firm should reduce quantity of output 3. Firm should increase quantity of output 4. Firm should shutdown operations 5. The given number set is inconsistent NumberMomocita is the only supplier of momos in the market. It is a profit maximizing, single-price monopolist with a constant Marginal Cost of $5, no fixed cost and faces a typical downward sloping demand curve. It currently charges a price of $14.5 for a plate of momos. If it increases its price to $15 a plate, which of the statements below is TRUE? Revenues will increase, costs increase and profits increase. Revenues will decrease, costs increase and profits decrease. Revenues will increase, costs increase and profits decrease. Revenues will increase, costs decrease and profits increase. Revenues will decrease, costs decrease and profits decrease. Revenues will increase, costs decrease and profits decrease.İn Monopolistic Market total cost function is TC=2*Q+10. İf Demand function P=10-2*Q then fin Profit maximum and consumer surplus?
