The inverse demand function a monopoly faces is p = 100 Q. The firms cost curve

Question:

The inverse demand function a monopoly faces is p = 100 – Q. The firm’s cost curve is C(Q) = 10 + 5Q. What is the profit- maximizing solution? How does your answer change if C(Q) = 100 + 5Q?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Managerial Economics and Strategy

ISBN: 978-0321566447

1st edition

Authors: Jeffrey M. Perloff, James A. Brander

See More Books

Question Posted: Nov 13, 2014 03:35 AM

See More Questions

The inverse demand function a monopoly faces is p = 10Q0.5. The firms cost curve is C(Q) = 5Q. What is the profit-maximizing solution?
HOW DOES YOUR ANSWER CHANGE IF SABER HAD SAID?LOOK, I HAVE SPENT TIME AND EFFORT COMING TO THIS STORE, I AM WILLING TO PAY THE DIFFERENCE BETWEEN THE PRICE ON THE SHELF AND THE ACTUAL PRICE, WHICH IS...
The inverse demand curve that a monopoly faces is p = 10Q-0.5. The firm's cost curve is C(Q) = 5Q. What is the profit-maximizing quantity and price?
Suppose you come from a part of the world that is blessed with abundant water. Demand never comes close to the available amount. Should you be careful about the amount you use or should you simply...
Refer to the JB Hi-Fi consolidated balance sheets in figure 3.3on page 94 to answer the following questions. a. What is the major difference between the format of this statement and that of a...
A small particle of mass m slides without friction in a spherical bowl of radius r. (a) Show that the motion of the particle is the same as if it were attached to a string of length r. (b) Figure...
Hansford and Harding use purchases, cash payments and general journals with their accounting system. They also maintain an accounts payable subsidiary ledger, which contains the following accounts at...
The May cash records of Dickson Insurance follow: Dickson's Cash account shows a balance of $16,650 at May 31. On May 31, Dickson received the following bank statement: Additional data for the bank...
4 16. The mean and variance of a binomial distribution area and respectively. If P(X = 1) = then P(X = 4 or 5) is equal to: 243 (a) 1/159 64 (b) $ 16 (c) 81 925 145 (d) 27 243 17. Let E1, E2, E3 be...
Ramada Inns, Inc. (Ramada Inns), is a franchisor that licenses franchisees to operate motor hotels using the Ramada Inns trademarks and service marks. In August, the Gadsden Motel Company (Gadsden),...
Does it affect a monopolys profit if it chooses price or quantity (assuming it chooses them optimally)? Why cant a monopoly choose both price and quantity?
Why is the ratio of the monopolys price to its marginal cost, p/MC, larger if the demand curve is less elastic at the optimum quantity? Can the demand curve be inelastic at that quantity?
Explain how civil wars, population growth, and public policy decisions have contributed to periodic famines in Africa.
Eulers totient function. Eulers totient function is an important function in number theory: (n) is defined as the number of positive integers less than or equal to n that are relatively prime with n...
Modify Transition to ignore the effect of multiple links. That is, if there are multiple links from one page to another, count them as one link. Create a small example that shows how this...
Birthday problem. Develop a class with appropriate static methods for studying the birthday problem.
Given the positions and masses of a sequence of objects, write a program to compute their center-of-mass, or centroid. The centroid is the average position of the n objects, weighted by mass. If the...
Explain the difference between vertical and horizontal prototyping.
Evaluate the triple integral. E 2x dV, where E = {(x, y, z) |0 y 2 0 x 4 y 2 , 0 z y}
The diameter of a sphere is 18 in. Find the largest volume of regular pyramid of altitude 15 in. that can be cut from the sphere if the pyramid is (a) square, (b) pentagonal, (c) hexagonal, and (d)...
Go to the World Banks databank website at http://databank.worldbank.org/data/reports. aspx?source=2&country=. Find the following annual data for South Korea (the Republic of Korea) and Thailand, for...
1. As the total output of a constant-cost industry increases, ________the cost does not change, so the long-run supply curve is _______ (horizontal/ positively sloped/negatively sloped). 2. A...
1. As the total output of a constant-cost industry increases, ________the cost does not change, so the long-run supply curve is _______ (horizontal/ positively sloped/negatively sloped). 2. A...
1. For a monopolist, marginal revenue is ___________ (greater/less) than price. 2. A monopoly that cuts its price gains revenue from its ________customers but loses revenue from its...
Aaron, Deanne, and Keon formed the Blue Bell General Partnership at the beginning of the current year. Aaron and Deanne each contributed $138,000, and Keon transferred an acre of undeveloped land to...
The following information pertains to the inventory of Parvin Company: Jan. 1 Apr. 1 Oct. 1 Beginning inventory Purchased Purchased 400 units @ 2,400 units @ 1,100 units $17 $22 $23 During the year,...
Gold Nest Company of Guandong, China, makes birdcages for the South China market. The company sells its birdcages through an extensive network of street vendors who receive commissions on their...

The inverse demand function a monopoly faces is p = 100 Q. The firms cost curve

Question:

Step by Step Answer:

Set MC MR and solve If the answer doe...View the full answer

Managerial Economics and Strategy

Students also viewed these Economics questions