Question: Consider a monopoly with the following cost function: C(y) = 5y+9y 2 Suppose that the market has the following inverse demand function: p = 135-4y

Consider a monopoly with the following cost function: C(y) = 5y+9y2

Suppose that the market has the following inverse demand function: p = 135-4y

Calculate the optimal monopolistic output.?

PLEASE GIVE ME ANSWER WITH DETAIL CALCULATION

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:

ASSIGNMENT #8 MONOPOLY Q1: (10 points) Suppose a monopolist has the following cost function C(Q) = Q2 (with marginal cost MC(Q) = Q). Suppose they face demand is P = 100 - Q. a) Sketch the market...

Q:

C1: PERFECT COMPETITION ..20 points. Suppose we have many firms each with an individual supply curve of q = 2 P. Assume that firms have a quasi-fixed cost of $4,000 (that is COST = 0 if they...

Q:

- 2. (5 p) Consider an industry with N firms that compete in quantities. The cost function of firm i is given by C(9)= cq.. The inverse demand curve in the market is given by PQ)= where Q is industry...

Q:

Here is my questions 10. Let P = 100 - 2Q and C(Q) = 40 + Q2 a. Under perfect competition calculate + i. Equilibrium P, Q+ ii. Consumer surplus, Producer surplus and Total Social Welfare + b. Suppose...

Q:

Suppose a monopolist has the following cost function C(Q) = Q 2 (with marginal cost MC(Q) = Q). Suppose they face demand is P = 100 - Q. a) Sketch the market demand, marginal costs, and marginal...

Q:

Suppose an industry with a monopoly structure. The monopolist has a cost function given by: c(Q)=5 + 2(Q)^2 for Q 0 The market inverse demand function is given by: p(Q) = 100 - (0.5)Q (a) Write down...

Q:

Practice question 1 Suppose a firm has the following short run cost function: C = 20c]2 + 1280 1. Suppose price = $500. How much output does this firm supply to the market? 2. Calculate total revenue...

Q:

1. (6 points) The law firm hires you as an economist to determine whether or not the cow-calf operation is a for-profit concern. You collect 20 years of data on the firm's output (q) and costs (C)...

Q:

Consider a two-period small open economy populated by a large number of identical households with preferences described by the utility function lnCT 1 + lnCN 1 + lnCT 2 + lnCN 2 where CT 1 and CT 2...

Q:

Answer these problems. 3. The market illustrated below has Inverse demand p(Q) = 130 - 30 and industry wide marginal cost MC(Q) = 10 + 2Q. If production is competitive, this is the market (inverse)...

Q:

Which of the following is an advantage of? ERP? A. Data fields do not have to be defined identically across the entire enterprise. B. It is very inexpensive to purchase. C. It creates a commonality...

Q:

A comparable sale has a sale price of $550,000 (V) and a lot value of $90,000 (V_). The site improvements(Vs) have a contributory value of $25,000, and the cost of construction of the house is...

Q:

1. If the CPI rose from 160.5 in 1998 to 168.7 in 1999 to 173.4 in 2000, this would be an example of . (LO6) a) defl ation b) disinfl ation c) infl ation

Q:

1. Discuss the following statements: a) Jeppe drinks because Holberg (the author) forced him to. b) When the soup you are served tastes bad, complain to the cookbook publisher. c) The purpose of an...

Q:

2. Find out if there are other reference points that can be used as reasonable alternatives.

Q:

1. Identify your reference point when making a decision based on an element of risk.