Monopolist’s Profit-maximizing Level of Output Assignment Help
1.A monopolist faces a demand curve P=210 −4Q and initially faces a constant marginal cost MC = 10.
a) Calculate the profit-maximizing monopoly quantity and compute the monopolist’s total revenue at the optimal price.
b) Suppose that the monopolist’s marginal cost increases to MC = 20. Verify that the monopolist’s total revenue goes down.
c) Suppose that all firms in a perfectly competitive equilibrium had a constant marginal cost MC = 10. Find the long-run perfectly competitive industry price and quantity.
d) Suppose that all firms’ marginal costs increased to MC = 20. Verify that the increase in marginal cost causes total industry revenue to go up.
2.Suppose that an industry is characterized as follows:
|C = 100 + 2q2||each firm”s total cost function|
|MC=4q||firm”s marginal cost function|
|P = 90 – 2Q||industry demand curve|
|MR= 90-4Q||industry marginal revenue curve|
a. If there is only one firm in the industry, find the monopoly price, quantity, and level of profit.
b. Find the price, quantity, and level of profit if the industry is competitive.
c. Graphically illustrate the demand curve, marginal revenue curve, marginal cost curve, and average cost curve. Identify the difference between the profit level of the monopoly and the profit level of the competitive industry in two different ways. Verify that the two are numerically equivalent.
3.Suppose a monopolist faces the following demand curve:
P = 596 – 6Q.Marginal cost of production is constant and equal to $20, and there are no fixed costs.
a)What is the monopolist’s profit-maximizing level of output?
b)What price will the profit-maximizing monopolist charge?
c)How much profit will the monopolist make if she maximizes her profit?
d)What would be the value of consumer surplus if the market were perfectly competitive?
e)What is the value of the deadweight loss when the market is a monopoly?
How it Works
How It works ?
Step 1:- Click on Submit your Assignment here or shown in left side corner of every page and fill the quotation form with all the details. In the comment section, please mention Case Id mentioned in end of every Q&A Page. You can also send us your details through our email id email@example.com with Case Id in the email body. Case Id is essential to locate your questions so please mentioned that in your email or submit your quotes form comment section.
Step 2:- While filling submit your quotes form please fill all details like deadline date, expected budget, topic , your comments in addition to Case Id . The date is asked to provide deadline.
Step 3:- Once we received your assignments through submit your quotes form or email, we will review the Questions and notify our price through our email id. Kindly ensure that our email id firstname.lastname@example.org and email@example.com must not go into your spam folders. We request you to provide your expected budget as it will help us in negotiating with our experts.
Step 4:- Once you agreed with our price, kindly pay by clicking on Pay Now and please ensure that while entering your credit card details for making payment, it must be done correctly and address should be your credit card billing address. You can also request for invoice to our live chat representatives.
Step 5:- Once we received the payment we will notify through our email and will deliver the Q&A solution through mail as per agreed upon deadline.
Step 6:-You can also call us in our phone no. as given in the top of the home page or chat with our customer service representatives by clicking on chat now given in the bottom right corner.
We use best scientific approach to solve case study as recommended and designed by best professors and experts in the World. The approach followed by our experts are given below:
The first step in solving any case study analysis is to define its problem carefully. In order to do this step, our experts read the case two three times so as to define problem carefully and accurately. This step acts as a base and help in building the structure in next steps.
The second step is to define structure to solve the case. Different cases has different requirements and so as the structure. Our experts understand this and follow student;s university guidelines to come out with best structure so that student will receive best mark for the same.
Research and Analysis
This is the most important step which actually defines the strength of any case analysis. In order to provide best case analysis, our experts not only refer case materials but also outside materials if required to come out with best analysis for the case.
Conclusion & Recommendations
A weak conclusion or recommendations spoil the entire case analysis. Our expert know this and always provide good chunks of volume for this part so that instructors will see the effort put by students in arriving at solution so as to provide best mark.
- Physics Assignment Help
- Chemistry Assignment Help
- Engineering Assignment Help
- Psychology Assignment Help
- Online exam Help
- Marketing Assignment Help
- Arts Assignment Help
- Sociology Assignment Help
- Project Management Assignment
- Case Study Help
- Nursing Assignment Help
- Research Assignment Help
- Operations Management Assignment help
- Accounting Assignment Help
- Biology Assignment Help
- Mathematics Assignment Help
- English Assignment Help
- Business Plan Help
- Essay Writing Help
- Human Resource Assignment Help
- Accounting Homework Help
- Computer Science Assignment Help
- Finance Assignment Help
- Economics Assignment Help
- Statistics Homework Help
- Management Assignment Help
- Strategy Management Assignment Help
- Auditing Assignment Help
- Information Management Assignment Help
- Online Assignment Writing help
- Humanities Assignment help
- Taxation Homework Help
- Corporate Finance Assignment Help
- Financial Management Assignment Help
4.You are given the following information about the costs of a perfectly competitive firm.
You are hired to determine the profit-maximizing quantity of the firm for different market prices. Complete the table below.
|Market Price||Profit-maximizing level of output||Total Revenue||Total Cost||Profit|
5.Suppose that demand for rollerblades is given by D(p) = A – p. The cost function for all firms is C(y) = wy2 + f , where f is a fixed set-up cost. The marginal cost of production is MC(y) = 2wy. Assume that the industry is perfectly competitive.
(a) Find a competitive firm’s supply function. If there are n firms in the industry, what is industry supply?
(b) If there are n firms in the industry, find expressions for the competitive equilibrium price and quantity. What is the equation for how much each firm produces? What is the equation for the profit of each firm? [Hint: Your answer should be 4 algebraic equations that express the endogenous variables (price, quantity, firm supply, and firm profit) as a function of the exogenous variables (A, n, f , and w).]
(c) Suppose A = 100, w = $4, f = $100, and n = 2. Using the equations you derived in part (b), what is the equilibrium price and quantity? Firm supply and profits? Using two diagrams, graph this competitive equilibrium. In one diagram illustrate the market equilibrium. In the second, show the equilibrium position of a representative firm. On this second diagram make sure you indicate the profit-maximizing output of a firm as well as the profit earned.
(d) Is the equilibrium you found in part (c) a short-run or long-run equilibrium? Why? If the industry is not in long-run equilibrium, explain the adjustment process that will occur.
(e) For the parameter values given in part(c),find the long-run competitive equilibrium.On the two diagrams from part(c),indicate the long-run equilibrium. What is the long-run equilibrium number of firms?
Product Code :Eco-sol-05
To get answer for this question, kindly click here (Note: Don’t forget to write the product code in comment section)
You can also email us at firstname.lastname@example.org but please mentioned product code in the mail body while sending emails.You can browse more questions to get answer in our Q&A sections here.