Question: Suppose demand is: ()=1002 and the total cost function is: ()=20 a. Find the perfectly competitive P* and Q*. b. Find the P and Q

Suppose demand is: ()=1002

and the total cost function is: ()=20

a. Find the perfectly competitive P* and Q*.

b. Find the P and Q chosen by a profit-maximizing monopolist.

c. What is producer surplus under perfect competition?

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:

(Please Help with D-G) 8. Suppose demand is: ()=1002 and the total cost function is: ()=20 a. Find the perfectly competitive P* and Q*. P=100-2Q MC=20 P*= $20 100-2Q=20 2Q=100-20 2Q=80 Q*= 40 units...

Q:

Question 1 (6 Marks) Part a) (3 mark) Suppose that when the price of salt is $1 per kg, buyers would purchase 20kg per year. But when the price falls to $0.9, the quantity demanded rises to 21kg per...

Q:

1- A firm is investing $1000. It might get a profit of $100 with a probability 0.6 or a profit of $40 with a probability at um What is the expected return of the firm?" (") 2- Consider the following...

Q:

4 Question 4 (26 points) Suppose a monopolist can purchase labor at a price w = 13 and can purchase capital at a price r = 8. The monopolist's production function is given by Q = 71 + 5K. The demand...

Q:

Suppose the market demand for a good is = 120 0.5. The monopolist (total) cost function is = 20. Find the single-price monopolist's profit-maximizing output, price, and profit. Suppose the monopolist...

Q:

A monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost curve for its product: P = 100 - Q/2, MR = 100 - Q TC = 5Q, MC = 5 (a) Find the...

Q:

Please help me with this Suppose PG&E operates as a monopoly. Total cost function of PG&E is TC=50,000+QZ. Demand for electricity is given by Q=3000.25P. Q is megawatts of electricity and P is the...

Q:

alll needed information is given 5. Running Shoes (60 points, 25 minutes). Davis Industries produces a running shoe. Davis has an upstream division that produces leather and a downstream division...

Q:

Homework # 2 1. Consider a perfectlyr competitive firm with a total cost function given by TC = q: + 100 . a) If the price of output is 860; how much output should the rm produce? b) Find the rms...

Q:

its maccro i need detailed answers Exercises Question 1 ("Review of Production and Cost Functions, and Prot Mardoiization} Suppose each worker costs $1130 to hire. An example firm has the following...

Q:

Calculating Number of Periods One of your customers is delinquent on his accounts payable balance. Youve mutually agreed to a repayment schedule of $300 per month. You will charge .9 percent per...

Q:

Clarissa Company has credit sales of $400,000 during 2010 and estimates at the end of 2010 that 2 percent of these credit sales will eventually default. Also, during 2010 a customer defaults on a...

Q:

Usefulness of the figures is the primary reason for all accounting. Discuss.10. On what fundamentals should the method of presenting cost data to management be based?

Q:

2. Which Growth strategies have been pursued by Starbuck s and Dunkin Donuts in the past and w hich strategies do you believe will be most successful for the two firms in the future? Why? (Minimum...

Q:

2. In this chapter, the reader should reflect on the following concepts: Systemic structuring, the displaced error, the communicable part of knowl-edge, tacit knowledge, hidden knowledge, analogy,...

Q:

2. List five points that are crucial to pay attention to if you want to positively influence someone from a foreign culture.

Q:

1. Discuss what you think is meant by the following statements: a) Splitting an egg into half to get two chickens. b) We cannot study time by taking apart a clock.