HomeworkLib
Question

For a monopolistic firm, its demand is P = 100 - Q while MR = 100...

For a monopolistic firm, its demand is P = 100 - Q while MR = 100 - 2Q, if its MC = 14, how much it should produce to maximize its profit?

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

P = 100 - Q

MR = 100 - 2Q

MC = 14

Profit maximizing condition

MR = MC

100 - 2Q = 14

100 - 14 = 2Q

86 = 2Q

Q = 86/2

= 43  

P = 100 - 43  

= 57

0 0
Add a comment
Know the answer?
Add Answer to:
For a monopolistic firm, its demand is P = 100 - Q while MR = 100...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 1. Suppose that demand is given by P=100-Q, marginal revenue is MR=100-2Q, and marginal cost (and...

    1. Suppose that demand is given by P=100-Q, marginal revenue is MR=100-2Q, and marginal cost (and average cost) is constant at 20. a. What single price will maximize a monopolist's profit? b. What will be the prices and quantity under two-part pricing? It involves a lump sum fee (e.g., membership fee) equal to the consumer surplus at competitive prices and user fees (i.e., unit price) equal to the competitive price. c. Now the monopolist has another group of consumers whose...

  • #1 1. A firm has the following demand and total cost schedule. TR Profit MR MC O 0 10 20 30 40 50 60 P 100 90 80 70...

    #1 1. A firm has the following demand and total cost schedule. TR Profit MR MC O 0 10 20 30 40 50 60 P 100 90 80 70 60 50 40 TC 200 400 600 800 800 1,000 1.200 1.400 a) Is the firm a price-taker or price searcher? Explain. b) Complete the Total Revenue (TR) and Profit schedules. c) How many units of output (Q) should the firm produce to maximize profits? d) What price (P) should the...

  • 3. Suppose the firm in monopolistic market faces the following demand function: Q = 5,000 -...

    3. Suppose the firm in monopolistic market faces the following demand function: Q = 5,000 - 125P ; and total cost function TC - 50 +0.00802 a. Write the equation for the inverse demand function. (1 pt) b. Find the marginal revenue function. (1 pt) c. How much output should the manager produce to maximize profit? What price should be charged for the output? (2 pt) d. Calculate the marginal cost function. (2 pt) e. At the output level, how...

  • Suppose a monopoly firm has the following demand and long‑run total cost functions: P(Q) = 100...

    Suppose a monopoly firm has the following demand and long‑run total cost functions: P(Q) = 100 ‑ Q and LRTC(Q) = 2Q. What are this firm's LRAC and LRMC functions (mathematically and gra­phically)? At what output level does this firm maximize profits? (Hint: marginal revenue is equal to 100 ‑ 2Q). What is this firm's profit level?

  • I ONLY NEED PART (E) PLEASE! On a market with monopolistic competition, a firm meets the demand Q...

    I ONLY NEED PART (E) PLEASE! On a market with monopolistic competition, a firm meets the demand Q D = 400 – 4P. The firm’s marginal cost is given by MC = 40 + 2Q. A. Which quantity should the firm produce to maximize its profit? Which is the profit maximizing price on the market? B. Draw a figure that shows the firm’s profit maximizing quantity and price. C. What is the firm’s long-term profit? D. Now instead assume the...

  • Given the following information for a monopoly firm: Demand: P = 64-4(Q) Marginal revenue: MR =...

    Given the following information for a monopoly firm: Demand: P = 64-4(Q) Marginal revenue: MR = 64 - 8(Q) Marginal cost: MC = 2(0)+10 Average total cost at equilibrium is 30 1. At what output (Q) will this firm maximize profit? 2. At what price (P) will this firm maximize profit 3. What is the total revenue (TR) earned at this output level 4. What is the total cost (TC) accrued at this output 5. What profit is earned Assume...

  • A firm in monopolistic competition has the firm demand curve: P = 48 - 2Q. The...

    A firm in monopolistic competition has the firm demand curve: P = 48 - 2Q. The Total Cost equation is TC = 40 + Q2 How much deadweight loss is created by the firm? Enter as a value.

  • Scenario: Suppose that the demand is given by: P = 100 – Q Marginal Revenue is...

    Scenario: Suppose that the demand is given by: P = 100 – Q Marginal Revenue is MR = 100 – 2Q and  Total Cost function is : TC(Q) = 20Q Assume the firm is a price-maker (monopolist). What is the maximum profit?

  • P = 225 - q TC = 5q MC = MR MC = 5 MR =...

    P = 225 - q TC = 5q MC = MR MC = 5 MR = 225 - 2q 5 = 225 - 2q 2q = 225 - 5 q = 220/2 = 110 P = 225 - 110 = 115 Duopoly Continuing with our latinum market example from last week, imagine that the government has noted the extreme restriction in latinum supplied and wishes to remedy the situation. While regulators are not willing to completely reopen the market, they...

  • You are a monopolist in a market with an inverse demand curve of: P=10-Q. Your marginal...

    You are a monopolist in a market with an inverse demand curve of: P=10-Q. Your marginal revenue is: MR(Q)=10-2Q. Your cost function is: C(Q)=2Q, and your marginal cost of production is: MC(Q)=2. a) Solve for your profit- maximizing level of output, Q*, and the market price, P*. b) How much profit do you earn?

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT