Question: 1. A monopolist faces a consumer demand Q (p) = 1000-2p, and has a total cost function of C(q) = 2q2 + FC. (a) Solve

1. A monopolist faces a consumer demand Q (p) = 1000-2p,

1. A monopolist faces a consumer demand Q (p) = 1000-2p, and has a total cost function of C(q) = 2q2 + FC. (a) Solve for the profit-maximizing output for this monopolist. (b) Solve for the value of FC that would generate zero profits, even at the profit-maximizing quantity

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Exercise 1: Find the first and the second-order derivatives of the following functions: 1. v(x) = 2/x + 4x 2. k(x) = 10 (x 3 ) 2 + 5 4 x 3. g(x) = ln(x 5 ) 4. f(x) = 7 log7(x) 5. u(x) = x 4 + x 3 1/x...

Exercise 3Consider a monopolist firm that faces an inverse demand P = Q/2 + 5, and has a total cost function C(Q) = 2/3Q 3 2Q 2 + 6Q. The domain of the cost function, profit function, and revenue...

.Consider a monopolist who pays an output tax $ t for each unit of output produced.Thus, total tax payments are simply tQ , where Q is the quantity produced. Suppose the government is considering...

1. A monopolist faces a market demand curve given byQ=53-P. Its cost function is given by C = 5Q + 50, i.e. itsMC =$5. (a) Calculate the profit-maximizing price and quantity for this monopolist. Also...

OS {4 points) A rm is originally operating as a singleprice monopolist that faces a market demand curve P (Q) = 193 %Q and total cost curve equal to T0 (q) = 10, 500 l 32C), with constant MC equal to...

A firm is originally operating as a single-price monopolist that faces a market demand curve P (Q) = 297 - -Q and total cost curve equal to TC(Q) = 88, 000 + 22Q, with constant MC equal to MC(Q) = 22...

A rm is originally operating as a singleprice monopolist that faces a market demand curve P (Q) = 29'? Tall? and total cost curve equal to TC[Q} = 88, 000 + 22:12, with constant MC equal to MC(Q) =...

pls see attach A firm is originally operating as a single-price monopolist that faces a market demand curve P (Q) = 198 %Q and total cost curve equal to TC (q) = 10, 500 + 32Q, with constant MC equal...

1.) Suppose a monopolist has a production function given by Q: L'SK'SAS a result, r' I." MPL= I!" and MPK= 5'" The monopolist can purchase capital (K) at a price r =$25 The monopolist can purchase...

Suppose Jones Company has orders from three customers located in the same market area. One order has a total weight of 4,000 pounds, the second weighs 8,000 pounds, and the third weighs 14,000...

How can capital structure decisions affect the risk associated with net income?

The equity of All Time Greats has a total market value of $ 1 4 8 , 9 0 0 . Currently, the firm has excess cash of $ 4 , 2 0 0 and net income of $ 2 1 , 4 0 0 . There are 1 , 1 0 0 shares of stock...

Terry has traditionally purchased all of its manufacturing equipment. However, in 2020 they were unable to find a vendor willing to sell them a new $5,078,000 machine. After some careful...

Prepare variance analysis based on the provided 2012 budget and the year-end trial balance Prepare variance analysis based on a flexible budget for actual sales volume Prepare analysis of potential...

Explain the following points, which are project manager's roles? Strategic roles Monitoring and evaluation role Team leader's role - Multi-functional role 2. Explain the following points, which...

Write a program to wish happy birthday to a student. Firstly, take today month and day as an input and secondly take birthday as an input in the form of month and day. If the input day and month...

7. Give examples of the following when you formulate a social problem or phenomenon: a) When you generalize from reality. b) When you choose something from social reality and do not choose some-thing...

5. Give examples of binary thinking.

2. In this chapter, the reader should reflect on the following concepts: Social facts, concrete fallacy, constructs, overestimation error.