FREE Trial

A monopolists inverse demand function is P = 150 - 3Q. The company produces output at two facilities; the marginal cost of producing at facility 1 is MC1 (Q1) = 6Q1, and the marginal cost of producing at facility 2

A monopolist’s inverse demand function is P = 150 - 3Q. The company produces output at two facilities; the marginal cost of producing at facility 1 is MC1 (Q1) = 6Q1, and the marginal cost of producing at facility 2 is MC2 (Q2) = 2Q2.
a. Provide the equation for the monopolist’s marginal revenue function.
b. Determine the profit- maximizing level of output for each facility.
c. Determine the profit- maximizing price.

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!
  • Tutor Answer

a Since the inverse demand is P 150 3 Q 1 3 Q 2 margin…View the full answer


answer-question
Related Book For  answer-question
Managerial Economics and Business Strategy

Managerial Economics and Business Strategy

ISBN: 978-0073523224

8th edition

Authors: Michael Baye, Jeff Prince

See More Books
Posted Date: April 18, 2014 09:04:04
See More Questions

Students also viewed these Economics questions

Q:
A monopolists inverse demand function is P = 100 Q. The company produces output at two facilities; the marginal cost of producing at facility 1 is MC1(Q1) = 4Q1, and the marginal cost of producing...
A:
a Since the inverse demand is P 100 Q 1 Q 2 margin......
Q:
A monopolys inverse demand function is p = Q0.25 A0.5, where Q is its quantity, p is its price, and A is the level of advertising. Its constant marginal and average cost of production is 6, and its...
A:
The marginal revenue function MR is MR 075 Q 025 A 05 Set marginal reve......
Q:
A monopolists inverse demand function is p = 100 2Q, so its marginal revenue is MR = 100 4Q. Its cost function is C = 25 + 4Q + 2Q 2 and its marginal cost is therefore MC = 4 + 4Q. a. Create a...
A:
Demand function P 100 2C MR 100 4Q Total Cost C 2Q 2 4Q 25 Marginal Cost MC 4Q 4 a Q P MR MC TR C Profit CS 1 98 96 8 98 31 67 1 2 96 92 12 192 41 151 4 3 94 88 16 282 55 227 9 4 92 84 20 368 73 295 1......
Q:
Numerous companies have established home pages on the Internet, e.g., the soda companies Capt'n Eli Root Beer Company and Cheerwine. Instructions Examine the home pages of any two companies and...
A:
a The Captn Eli Root Beer Companys home page includes information about the companys history products and events It also includes a store locator cont......
Q:
Suppose that Bob decides to continue to make $1,000 deposits into his IRA every year until his 65th birthday. If John still waits until he is 36 to start his IRA, how much must he deposit each year...
A:
Bob PMT 1000 r 64 0064......
Q:
An unknown sample of Cu2+ gave an absorbance of 0.262 in an atomic absorption analysis. Then 1.00 mL of solution containing 100.0 ppm (= g/mL)Cu2+ was mixed with 95.0 mL of unknown, and the mixture...
A:
a b c......
Q:
Three-strikes laws will be enforced and longer sentences imposed only if hundreds of new prisons are built, and that will happen only if taxes are increased. (T, L, H, I) Translate the following...
A:
Click to View...
Q:
A condensed balance sheet for Sharp Tax Inc. as of December 31, 2010, follows. Capital stock authorized consists of 750 shares of 8%, $100 par, cumulative preferred stock and 15,000 shares of $50 par...
A:
1 2011 Dec 20 Dividends Retained Earnings 84000 Dividends PayablePreferred Stock 6000 Dividends PayableCommon Stock 3000 Stock Dividends DistributableCommon Stock 3000 shares 50 050 75000 Preferred di......
Q:
Express the following pieces of information as linear inequalities: (a) One store location needs to fill at least 10 slots on their shelves with your products. (b) Another store needs 2 of your first...
A:
SOLUTION a Lets denote the number of slots filled with your products at the first store as x The inequality representing the requirement of filling at......
Q:
The time taken for a sample of eight pieces of equipment to do a task has a mean of 52 minutes and a standard deviation of 18 minutes. What is the 90% confidence interval for the mean time of all the...
A:
Here we have n 8 x 52 and s 18 For a sample of 8 we use a tdistribu......
Q:
The elasticity of demand for a firms product is -2.5 and its advertising elasticity of demand is 2.0. a. Determine the firms optimal advertising-to-sales ratio. b. If the firms revenues are $40,000,...
A:
a The optimal advertising to sales rati......
Q:
You are the manager of a small pharmaceutical company that received a patent on a new drug three years ago. Despite strong sales ($ 150 million last year) and a low marginal cost of producing the...
A:
Profit maximization requires equatin......
Q:
Figure shows three 20.0? resistors. Find the equivalent resistance between points (a) A and B, (b) A and C, and (c) B and C. B funghunghung W A
A:
a ReqAB 200 23 667 N three 200 2......
Q:
The following are abridged accounting reports prepared for X Ltd: Name and calculate the ratios which indicates: (a) The rapidity with which accounts receivable are collected; (b) The ability of the...
A:
a The rapidity with which account receivables are collected is referred to as the Accounts Receivabl......
Q:
From the following Balance Sheet of AB Ltd. prepare a Cash Flow Statement for the year ended 31.3.2016: Additional information: (a) Dividend of 23,000 was paid. (b) Income tax paid during the year ...
A:
Cash Flow Statement for the Year Ended 31st March 2016 Particulars A Cash Flows from Operating Activ......
Q:
Total variance = Standard cost- ___________ .
A:
Total variance in the context of cost accounting refers to the difference b......
Q:
Explain the difference between allocating costs and apportioning costs.
A:
Allocating costs and apportioning costs are both methods used in managerial accounting to distribute and assign expenses to various departments produc......
Q:
A business produces 850 units of a product. Allocated direct costs - materials $10000; labour $2000; apportioned overheads $1175. Calculate the cost of producing one unit of the product.
A:
Total cost Allocated materials cost Allocated labor cost All......
Q:
The balance sheet for Yakima Corporation reported the following: noncurrent assets, $240,000; total assets, $360,000; noncurrent liabilities, $176,000; total stockholders equity, $94,000. Compute...
A:
Current assets 120000 36......
Q:
Question 2 For an n x n matrix A = form) via (aij)
A:
1 The relationship between 44 and 4AAT is that 44 is......
Q:
Which of the following would most likely be scrutinized under the FTC and DOJ Horizontal Merger Guidelines? a. Two automakers steeped in traditionDaimler-Benz AG and Chrysler Corporationmerge. b....
A:
Merger a Is the only horizontal merger and......
Q:
Nationwide Bank has approached Hometown Bank with a proposal to merge. The following table lists the sales of the banks in the area. Use this information to calculate the four-firm concentration...
A:
While the premerger fourfirm concentration......
Q:
Suppose Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion. Prior to the merger, the market for four-wheel-drive tractors consisted of five firms. The market was...
A:
If approved the merger would raise the HHI by 227 13 10000 702 poin......
Q:
A normal distribution has a mean of = 30 and a standard deviation of = 12. For each of the following scores, indicate whether the body is to the right or left of the score and find the proportion...
A:
a body to the left p 059......
Q:
A normal distribution has a mean of = 60 and a standard deviation of = 18. For each of the following samples, compute the z-score for the sample mean and determine whether the sample mean is a...
A:
a With a standard error of 9 M......
Q:
A normal distribution has a mean of = 54 and a standard deviation of = 6. a. What is the probability of randomly selecting a score less than X = 51? b. What is the probability of selecting a sample...
A:
a z 050 and p 03......
Q:
A process has an in-control fraction nonconforming of p = 0.01. The sample size is n = 300. What is the probability of detecting a shift to an out-of-control fraction nonconforming of p = 0.05 on the...
A:
Since pnew 005 01 and n 300 is large use the Poisson approximation to the b in o m i a l......
Q:
Consider the following 10 observations on time to failure: 50, 191, 63, 174, 71, 62, 119, 89, 123, and 175. Is either the exponential or the Weibull a reasonable choice of the time to failure...
A:
MTB Graph Probability Plot Single Distribution Exponential Weibull Based o......
Q:
On June 1, Maui Travel Agency, Inc., was established. The following transactions were completed during the month. 1. Stockholders invested $40,000 cash, receiving common stock in exchange. 2. Paid...
A:
MAUI TRAVEL AGENCY INC Cash Accounts Receivable Supplies Office Equipment Accounts Payable Common St......
Q:
Either clear-cutting in national forests is halted and old-growth trees are allowed to stand, or salmon runs will be destroyed and bird habitats obliterated. (C, O, S, B) Translate the following...
A:
Click to View...
Q:
The quarterly sales levels (measured in millions of dollars) for Goodyear Tire are shown in Table P-13. Does there appear to be a significant seasonal effect in these sales levels? Analyze this time...
A:
a b Would use both the trend and seasonal indices to forecast althou......
Q:
You own a pottery business that sells beautiful kiln fired mugs. You have classified customers at your online pottery store as either: Loyalty program members (20% of all customers), regular shoppers...
A:
Lets break this down step by step 1 Proportion of customers purchasing a mug Loyalty Program Members......
Q:
An ISP is granted the block 16.12.64.0/20. The ISP needs to allocate addresses for 8 organizations, each with 256 addresses. a. Find the number and range of addresses in the ISP block. b. Find the...
A:
a The number of addresses in the ISP block is N 2 3220 4096 We can add 4095 which is N 1 to the firs......
Q:
Find the z-score boundaries that separate a normal distribution as described in each of the following. a. The middle 30% from the 70% in the tails. b. The middle 40% from the 60% in the tails. c. The...
A:
a z 039 c......
Q:
For a normal distribution with a mean of = 60 and a standard deviation of = 10, find the proportion of the population corresponding to each of the following. a. Scores greater than 65. b. Scores...
A:
a p z 050 030......
Q:
Calculate the terminal speed for a bacterium in water. Use the expression for the drag force in Equation 3.23. Assume the bacterium has a mass m = 4 10 15 kg, a drag coefficient C = 0.02 N s/m 2...
A:
We can use Stokes equation for drag in a fluid to find the drag force This drag force is equal to th......
Q:
An investment is forecasted to last 3 years. The nominal net cashflows are expected to be 1000$ for each one of the years 1 to 3. Based on the inflation rate and the above cashflows, the real net...
A:
The Net Present Value NPV of an investment is calculated by discounting future cash flows to their present value and then subtracting the initial inve......
Q:
You are an administrator for Big City Hospital Inc., a large medical center. Your medical center has just received a Summons indicating that a Complaint has been filed in the state district court in...
A:
1 Preserving documents for litigation is crucial because it ensures the availability of accurate and relevant information to support legal proceedings This process helps maintain the integrity of evid......
Q:
1.Based on what you've learned in this section, how would you develop a list of the potential perils of international business for those who are considering getting involved in it? Discuss at least...
A:
1 Potential Perils of International Business Entering international business has risks including Cultural Differences Misunderstandings and offense du......
Q:
A company using the perpetual inventory system purchased 500 pallets of industrial soap for $10,000 and paid $750 for freight. The company sold the entire lot to a supermarket chain for $14,000 on...
A:
In a specific identification inventory system you need to match the actual costs of the items sold t......
Q:
4. Compare the following two call options, written on two different stocks: Dividend yield 0% 0% Call A B T 1 1 Which stock must have the higher implied volatility? Explain briefly. S 50 55 K 50 50...
A:
To determine which stock must have the higher implied volatility we need to consider the characteris......
Q:
Wildflower Magazine, Inc., includes the following selected accounts in its general ledger at December 31, 2018: Requirement Prepare the liabilities section of Wildflower Magazine?s balance sheet at...
A:
Liabilities Current Liabilities Accounts payable 42500 Interest paya......
Q:
Suppose that fraction used = / 1.0 + 0.1Mt. for some parameter 1. Write the discrete-time dynamical system and solve for the equilibrium. Sketch a graph of the equilibrium as a function of ....
A:
The discretetime dynamical system is To find the equil......
Q:
The cost of equity is equal to the: a. Expected market return. b. Rate of return required by stockholders. c. Cost of retained earnings plus dividends. d. Risk the company incurs when financing.
A:
b is correct The......
Q:
The present value of cashflows is equal to V = 100. This value can move up the next period with u = 1.1 to V = 110. The up factor is u = e^ and the down factor is d = 1/u. Calculate the volatility ...
A:
Click to View...
Q:
The average demand is equal to 10 units per day, the order lead time is 7 days, and the standard deviation of the lead time demand is 4 units. If a 95 percent service level is desired, what is the...
A:
ROP d......
Q:
a. Find the nth-order Taylor polynomials for the given function centered at the given point a, for n = 0, 1, and 2.b. Graph the Taylor polynomials and the function. f(x) = ln x, a e =
A:
a To find the nthorder Taylor polynomials for the function fx lnx centered at a e we n......
Q:
1. Evidence suggests that globalization can help developing nations boost incomes for their poorest citizens in what part of the debate over inequality? 2. In the debate over inequality between...
A:
1 Inequality within nations 2 Evidences su......
Q:
Swiss Ltd. issued 40,000 equity shares of 10 each at par. The entire issue was underwritten as follows: A ---- 24,000 shares (firm underwriting 3,200 shares); B ---- 10,000 shares (firm underwriting...
A:
To solve this problem lets break down the steps and calculate the liability of each underwriter and the commission payable to them Step 1 Calculate th......
Q:
Liz had AGI of $130,000 in 2022. She donated Bluebird Corporation stock with a basis of $10,000 to a qualified charitable organization on July 5, 2022. a. What is the amount of Lizs deduction...
A:
In general the deduction for a contribution of capital gain property is based on the fair ma......
Q:
Rosa contributes $50,000 to FlipCo in exchange for a 10% ownership interest. Rosa materially participates in FlipCo's business. FlipCo incurs a loss of $900,000 for 2014. Entity liabilities at the...
A:
a Rosas basis for her partnership interest prior to consideration of the loss is 1200......
Q:
For each single cash flow, calculate the future value (FV) given the interest rate (I/Y) and time (N). Round to the nearest cent. Single Cash Flow ($) Interest Rate (%) Years Future Value ($) 409,000...
A:
Click to View...
Q:
This assignment is similar to VistaBeans. You will try to figure out how to maximize profits for a manufacturing company. It may be a good idea to eliminate certain products, or examine how one...
A:
Answer In order to maximize profits for the company I would recommend eliminating certain products t......
Q:
SALES Althea paid $5.00 each for two bracelets and later sold each for $15.00. She paid $8.00 each for three bracelets and sold each of them for $9.00. a. Write an expression that represents the...
A:
a The following expression can be used to express the profit Alt......
Q:
Consider the following utility function: U = XY that earns 200 MT and spends on the consumption of goods X and Y, whose prices are, respectively: Px = 2 and Py = 1. a) Calculate the Marginal Rate of...
A:
The detailed......
Q:
Danish Delight Berhad has been in operation since 2018. To ensure its competitiveness with other companies within the same industry, the CEO request constant review of company's financial...
A:
Question 1 Vertical analysis of the statement of profit or loss and other comprehensive income is sh......
Q:
Which group has the lowest incidence of chlamydia? What explanations might the researchers offer about this data? Refer to the graph in Figure 2-13. FIGURE 2-13 Incidence of Chlamydia in Florida by...
A:
Chlamydia is a sexually transmitted infection STI and its incidence can vary based on factors such a......
Q:
If you were going to design a chlamydia prevention campaign, what age group would you suggest targeting? Why? Refer to the graph in Figure 2-13. FIGURE 2-13 Incidence of Chlamydia in Florida by Age...
A:
When designing a chlamydia prevention campaign its important to target the age group that is most af......
Q:
If a person has a disease and tests positive for it, the result is an example of which of the following? a. A true negative b. A false positive c. A false negative d. A true positive
A:
If a person has a disease and tests positive for it the result......
Q:
Using a separate graph for each change, show the effects of the following changes on the market labor demand curve. a. An increase in the wage rate b. An increase in the price of the good that the...
A:
a An increase in the wage rate When the wage rate increases the cost of hiring workers goes up for f......
Q:
It is really helpful to start reading professional research articles to see how these concepts are used in actual study scenarios. Give it a try in this article, where the researchers examined the...
A:
In the research article Patients perception on the impact of coffee consumption in inflammatory bowe......
Q:
(a) Write down the units of the following quantities and give their physical meanings : 1) microscopic cross-section ( ), 2) f , 3) v f , 4) f V, and 5) f V = 200 MeV/fission . (b) Write down...
A:
a 1 Unit of microscopic crosssection is area m2 or barns 2 Unit of f is m 3 Unit of vf is m 4 Unit o......
Q:
Identify the most stable compound:
A:
In the com......
Financial And Managerial Accounting 7th Edition - ISBN: 0324025408 - Free Book