For the monopoly in figure at what quantity is its revenue maximized? Why is revenue maximized at

Question:

For the monopoly in figure at what quantity is its revenue maximized? Why is revenue maximized at a larger quantity than profit? Modify panel b of figure to show the revenue curve.

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 03:34 AM

See More Questions

In panel b of Figure 12.4, the single-price monopoly faces a demand curve of p = 90 - Q and a constant marginal (and average) cost of m = $30. Find the profit-maximizing quantity (or price) using...
The marginal revenue curve of a monopoly crosses its marginal cost curve at $30 per unit and an output of 2 million units. The price that consumers are willing to pay for this output is $40 per unit....
In Figure 8.3, why is the revenue curve a straight line in panel a? What is the slope of the revenue curve? What is the slope of the profit curve at the q where profit is maximized? What can you say...
Air pollution officials in Californias Central Valley have opened a new front in the war against urban sprawl, and regulators and environmental advocates throughout the state are watching closely....
The account balances, dated 30 September 2013, of sole trader Anakin Verstege (Verstege Bike Hire) are shown below. Use this information to prepare an income statement and a balance sheet as at this...
Observing Jupiter you are asked to design a space telescope for earth orbit. When Jupiter is 5.93 x 108km away (its closest approach to the earth), the telescope is to resolve, by Rayleigh's...
If $\mathbf{Z}$ is the $n \times k$ matrix of standardized regressors and $\mathbf{T}$ is the $k \times k$ upper triangular matrix in Eq. (11.3), show that the transformed regressors...
Qamar, Inc., did not pay dividends in 2009 or 2010, even though 50,000 shares of its 6.5%, $50 par value cumulative preferred stock were outstanding during those years. The company has 800,000 shares...
Image transcription text THE REPORT: Your company is making a new component. You conduct a stress analysis and determine that the widget must be Fabricated from a material having a yield strength of...
A mouse is put into a maze of compartments, as in the diagram. Assume that he always leaves any compartment he enters and that he is equally likely to take any tunnel entry. (a) If he starts in...
If the inverse demand function is p = 500 10Q, what is the elasticity of demand and revenue at Q = 10?
Using a graph, show under what condition the monopoly operatesdoes not shut downin the long run. Discuss your result in terms of the demand curve and the average cost curve at the profit-maximizing...
Does this example reflect an inevitable consequence of the use of poor job design in both the manufacturing and service sectors, as human beings will always seek to influence their surroundings to...
For the four identical current-carrying wires shown (with conventional current coming out of the plane of the page), the wire on the right is labeled P. What is the direction of the total magnetic...
1. We have a compression-evaporation heat pump which contains 4 mol of a diatomic ideal gas with 5 degrees of freedom. (a) The gas is first compressed adiabatically from a pressure of 1.5 MPa at T...
11) A gun is fired to hit a target level with it but 1000 m away. If the muzzle velocity of the gun is 200 ms and the shell it fires has to pass over a tree 15 m high and 50 m from the gun, find the...
3. Planet 1 and 2 are in coplanar circular orbits about the sun, with average distances a and a2 respectively where a2 > a. a) Give an expression for the period of revolution about the sun for each...
10. An impulsive force acts to change the momentum of an object by 6 kg. The magnitude of the force is F = 3000 N. How long did the force act for?
A particular gaseous hydrocarbon that is 82.7% C and 17.3% H by mass has a density of 2.33 g/L at 23 C and 746 mmHg. What is the molecular formula of this hydrocarbon?
The Adjusted Trial Balance columns of a 10-column work sheet for Webber Co. follow. Complete the work sheet by extending the account balances into the appropriate financial statement columns and by...
For the following operations, what happens to the central banks and commercial banks reserves and the monetary base? Use T-account to show changes in balances. Assume that the amount is $10 million....
A consumer must spend all of her income on two goods (X and Y). In each of the following scenarios, indicate whether the equilibrium consumption of goods X and Y will increase or decrease. Assume...
A consumers budget set for two goods (X and Y) is 500 2X + 4Y. a. Illustrate the budget set in a diagram. b. Does the budget set change if the prices of both goods double and the consumers income...
A worker views leisure and income as goods and has an opportunity to work at an hourly wage of $10 per hour. a. Illustrate the workers opportunity set in a given 24-hour period. b. Suppose the worker...
From the following, prepare a balance sheet for Kim Co. Cleaners at the end of September 202X: Cash, $67,000; Equipment, $7,000; Accounts Payable, $13,000; B. Kim, Capital. Prepare the balance sheet....
Kubin Company's relevant range of production is 25,000 to 33,500 units. When it produces and sells 29,250 units, its average costs per unit are as follows: Average Cost per Unit $8.50 $ 5.50 Direct...
Dozier Company produced and sold 1,000 units during its first month of operations. It reported the following costs and expenses for the month: Direct materials Direct labor $ 83,000 $ 42,000 Variable...

For the monopoly in figure at what quantity is its revenue maximized? Why is revenue maximized at

Question:

Step by Step Answer:

Revenue is maximized when the change in revenue is zero This occurs at ...View the full answer

Managerial Economics and Strategy

Students also viewed these Economics questions