Question: A monopolist faces a demand curve: Q = 60 - 2P, Fixed costs = 10, and MC = 20, what is Total Profit under profit

A monopolist faces a demand curve: Q = 60 - 2P, Fixed costs = 10, and MC = 20, what is Total Profit under profit maximization?

  1. 1Total Profit = -410
  2. 2Total Profit = -10
  3. 3Total Profit = 0
  4. 4Total Profit = 40*

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!

Q:

The subject property is the Yankee Avenue property described in Case Study 4.3. Based on the description from the case study and the information below, you must apply the direct comparison approach...

Q:

1. A monopolist faces a demand curve = 120 2 and has costs given by () = 20 + 100. 91.1. Write the monopolist's profits in terms of the price it charges. 91.2. Use the derivative (w.r.t. price) to...

Q:

Problem 2 (25 marks) A monopolist faces a demand curve Q = 50 - - and has a marginal cost MC - 10 + 40. Suppose there is no fixed cost. Use the given equations to answer the following questions. 1)...

Q:

Diminishing marginal productivity would take place when 0 worker wages are reduced. 0 an ofce gets too crowded for the number of workers. 0 union workers are hired. O worker wages are increased....

Q:

Help me with the following 3. Consider a monopolist with cost function c(y) = cy. with e > 0, facing demand function x(p) = ap-, where c> 0. a. Show that if & $ 1. then the monopolist's optimal price...

Q:

1. A monopolist faces a demand curve given by: P = 105 - 3Q, where P is the price of the good and Q is the quantity demanded. The marginal cost of production is constant and is equal to $15. There...

Q:

Please find the attached multiple choice questions: Answers and explanations please. 25. A firm in monopolistic market faces the following demand and total cost equations for its product as follows:...

Q:

Problem 1 A firm with market power faces a demand curve qd = 40 - 2P. The firm's Total Cost is TC = 0.25q2 +2q + 50. a) In a graph draw the firm's demand curve. Assume that the firm behaves like a...

Q:

QUESTION 1 9 points A monopolist faces a demand curve, Q=100-2P and has a constant marginal cost of 10. It has no fixed costs. 22.5 a. If the monopolist can only charge a single price, it should...

Q:

QUESTION 1 9 points A monopolist faces a demand curve, Q=100-2P and has a constant marginal cost of 10. It has no fixed costs. 22.5 a. If the monopolist can only charge a single price, it should...

Q:

The market (inverse) demand for cellphones is given by P = 200 - Q and the initial market supply curve is given by P = 100. Due to technological innovation, the firms' MC of production decreases and...

Q:

Do you think that the government should bail out the automobile industry? Suppose that this question was asked in a recent survey of 460 Americans. Respondents were also asked to select the category...

Q:

The National Center for Education Statistics monitors many aspects of elementary and secondary education nationwide. Their 1996 numbers are often used as a baseline to assess changes. In 1996, 31% of...

Q:

In the figure, Delta*A * B' * C' is an enlargement of Delta*ABC with a scale factor of 3. Given that B' * C' = 12cm and B * B' = 6cm find the length of BC and of A 6 cm B B' 12 cm C'

Q:

Prepare an income statement for Kissick Co.'s first year of operations and a balance sheet as of the end of the year. a. Issued 192,000 shares of $4-par-value common stock for $768,000 in cash. b....

Q:

Mak Cun, a Malaysian citizen transferred a house in Penang as a gift to her daughter, Siti on 15 May 2015. Mak Cun bought the house on 1 April 2012 for RM280,000. She paid stamp duty and lawyer fees...

Q:

Faye was a world-renowned rock star from ABC-Country. A record company located in the USA, named Platinum-USA Records, contracted with Faye to produce records. Platinum-USA Records retained all...

Q:

ABC Sdn Bhd, a manufacturing company and resident of Malaysia. In the basis year 2016, the company made the following payment to Orange Ltd, a Singaporean company: ii. Orange LTd does not have any...

Q:

Prepare journal entries for the following (a) Nov 1, 15: purchased machinery for $93,600 with a $7,200 residual value and a 6-year life by paying $14,400 down and the balance with a Note Payable. (b)...

Q:

A pointer holds a memory address.

Q:

4. Develop circular models, with positive and negative feedback loops, for the following situations: (a) In a poor third-world country, the population increase has been very large in the last ten...

Q:

Annoyance about a statement that has been made by somebody

Q:

6. Develop a circular model, with positive and negative feedback loops, showing the relationships between the following critical variables: