Question: Q1. (a) Suppose the marginal revenue (MR) function of a monopolist is 5000-0.25Q, what is the profit maximizing price and quantity? (b) With the aid

Q1. (a) Suppose the marginal revenue (MR) function of a monopolist is 5000-0.25Q, what is the profit maximizing price and quantity?
(b) With the aid of illustrations, show or identify the demand, marginal revenue and total revenue curves.
(c) Using your illustrations, state the maximum amount of total revenue-in US dollars-that can be derived.
(d) Suppose the demand curve for a monopolist is 600 -P, and the marginal revenue function is MR = 600 -2Q. If the monopolist has a constant marginal and total per unit cost of $300: What is the profit of the firm (in US dollars)? Plot the average revenue, marginal revenue, and total revenue curves.

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Section 1 Microeconomics Question 1 a Since there is no information given on marginal cost we shall find revenue maximizing prices and quantity in this answer and relate it to profit maximizing scenar... View full answer

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