A certain monopoly has a marginal cost that depends on the quantity produced. The marginal cost is

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

Question:

A certain monopoly has a marginal cost that depends on the quantity produced. The marginal cost is MC = 4Q
The marginal revenue curve is: MR = 40 – 4Q
The demand curve is: D = 40 - 2Q

Fixed cost of production $10, variable cost is $5 per unit produced.

a) Graph the MR, MC and demand curves!

b) Which quantity the monopoly will produce at which price?

c) Calculate the profit!

Related Book For answer-question

Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

See More Books

Posted Date: Jan 16, 2020 02:17 AM

See More Questions

Carlos has a utility function that depends on the number of musicals and the number of operas seen each month. His utility function is given by U = xy2, where x is the number of movies seen per month...
How big are tomatoes? Some say that depends on the growing conditions. A random sample of n 1 = 89 organically grown tomatoes had a sample mean weight of x 1 = 3.8 ounces. Another random sample of n...
Graph a kinked demand curve and its corresponding marginal revenue curve.
In its income statement for the year ended December 31, 2020, Bramble Company reported the following condensed data. Operating expenses $754,570 Interest revenue $28,440 Cost of goods sold 1,339,800...
Describe the factors that influence the size of the two weld beads shown in Fig. 12.13?
Refer to Exercise 15.94. Each respondent was also asked whether they are currently depressed (1 = Yes, 2 = No). Is there sufficient evidence to infer that alcohol and current depression are related?...
The production department of Zunni's Manufacturing is considering two numerically controlled drill presses; one must be selected. Comparison data is shown in the table below. MARR is 10 percent/year....
The activities described by the following table are given for the Howard Corporation in Kansas: a) Draw the appropriate AON PERT diagram for J. C. Howards management team. b) Find the critical path....
Suppose one side of your home was damaged in a storm. To fix it you need to put new siding on the damaged exterior wall. The damaged wall measures 30.2 feet in length and 22.7 feet in width. The...
An acetoneethanol mixture of 0.5 mole fraction acetone is to be separated by batch distillation at 101 kPa. Vaporliquid equilibrium data at 101 kPa are as follows: (a) Assuming an L=D of 1.5 times...
Which one level of from Maslows Hierarchy of Human Needs that can be used to segment the market and position of Tescos product/service. household appliance
Go to mymanagementlab.com for Auto-graded writing questions as well as the following Assisted-graded writing questions: 1. How can incentive pay systems, when properly applied, contribute to...
The company prices health insurance for its workforce, and determines that the annual cost is $2,500,000. Based on your answer to question 10-9, how much money would it save by not offering health...
Suppose we are interested in testing the joint significance of b 1 and b 2 . That is, the null hypothesis is H 0 : 1 - 2 = 0. Test the joint significance of 1 and 1 .
Say that 90 percent of the people in a market demonstrate the endowment effect and 10 percent are rational. Say that, initially, all people have equal wealth. a. How would you expect the wealth...
Consider an imaginary 10 -year period over which output per worker falls, but GDP increases. How can this happen? Do you think this is likely to be good for the economy?
A minor dependent taxpayer earns $4,000 during the year as a grocery bagger and has $1,000 in investment income from holdings gifted at birth by their grandparents. What is the value of their...
How do the principles of (a) Physical controls and (b) Documentation controls apply to cash disbursements?
Consider the production function in Learning-By-Doing Exercise 7.6: Q = L + K + M. For this production function, the marginal products of labor, capital, and materials are MPL = 1/(2L), MPK = 1/(2K),...
Suppose a consumer purchases only three goods, food, clothing, and shelter. Could all three goods be normal? Could all three goods be inferior? Explain.
What are the conditions that enhance the likelihood of a cooperative outcome in a repeated prisoners' dilemma game?
Consider a second-order system whose transfer function is in standard form as in Equation 10.7. Assume that the requirements for the system unit-step response are rise time \(t_{\mathrm{r}} \leq 0.1...
The transfer function of a dynamic system is given by \[G(s)=\frac{s+4}{s^{5}+2 s^{4}+3 s^{3}+8 s^{2}+4 s+5}\] Determine the stability of the system a. Using Routh's stability criterion without...
The unit-step response of a dynamic system is shown in Figure 10.12. Find the transfer function of the system if it can be approximated as \(a /\left(s^{2}+2 \zeta \omega_{n} s+\omega_{n}^{2}...

A certain monopoly has a marginal cost that depends on the quantity produced. The marginal cost is

Question:

Expert Answer:

Microeconomics

Students also viewed these economics questions