FREE Trial

Suppose a company has a monopoly on a game called Monopoly and faces a demand curve given by QT =

Question:

Suppose a company has a monopoly on a game called Monopoly and faces a demand curve given by
QT = 100 – P
and a marginal revenue function given by
MR = 100 – 2QT
Where QT equals the combined total number of games produced per hour in the company’s two factories (QT = q1 + q2). If factory 1 has a marginal cost function given by
MC1 = q1 – 5
and factory 2 has a marginal cost function given by
MC2 = 0.5q2 – 5
How much total output will the company choose to produce and how will it distribute this production between its two factories in order to maximize profits?

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!

Step by Step Answer:

Answer rating: 100% (8 reviews)

A Multiplan monopolist will still produce …View the full answer


answer-question
Answered By
tutor-profile-image
Poonam Chaudhary
I have 15 month+ Teaching Experience
5.00+ 2+ Reviews 10+ Question Solved
Related Book For  answer-question
Intermediate Microeconomics and Its Application

Intermediate Microeconomics and Its Application

ISBN: 978-0324599107

11th edition

Authors: walter nicholson, christopher snyder

See More Books
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: January 21, 2013 04:18:31
See More Questions

Students also viewed these Economics questions

Q:
A monopolist faces a demand curve given by P = 40 - Q 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 $2. There are no...
A:
R PQ 40Q Q2 MR dR dQ 40 2Q Profit is maximized whe......
Q:
A pharmaceutical company has a monopoly on a new medicine. Under pressure by regulators and consumers, the company is considering lowering the price of the medicine by 10 percent. The company has...
A:
If the company is currently charging the optimal monopoly price any cut will r......
Q:
A drug company has a monopoly on a new patented medicine. The product can be made in either of two plants. The costs of production for the two plants are MC1 20 2Q1 and MC2 10 5Q2. The firms...
A:
First notice that only MC 2 is relevant because the marginal co......
Q:
A small project consists of three activities: A, B, and C. To start activity C, both activities A and B need to be complete. Activity A takes 3 days with a probability of 50 percent and 5 days with a...
A:
It takes an expected 5 5 days That this is longer than one would expect based on the average co......
Q:
Refer to Problem 5-56. If the government expects inflation to average 3% per year, what is I the equivalent uniform annual savings in fuel (jet fuel |savings will be $2.5 billion one year from now)....
A:
Based on Equation 4 28 we have With inflati......
Q:
The data set from Dalia Research (youll learn more about Dalia in Chapter 2) contains 763 variables, including demographic information on the 43,034 respondents and survey questions on a variety of...
A:
Dalia Research Who43 034 people worldwide who responded to the Dalia surv......
Q:
{[(G N) H] [(G H) P]} (N P ) Use truth tables to determine whether the following symbolized statements are tautologous, self-contradictory, or contingent.
A:
To determine whether the symbolized statement G N H G H P N P is a tautology self contradictory or c......
Q:
Balthus Corp. reports the following components of stockholders equity on December 31, 2013: Common stock $ 1 par value, 320,000 shares authorized, 200,000 shares issued and outstanding . . . . . . ....
A:
Part 1 Jan 10 Treasury Stock Common 480 000 Cash 480 000 Purchased treasury stock 40 000 x 12 Mar 2......
Q:
What is elon musk leadership style? 2. If you become a leader, what leadership style will you apply? 3. How can you develop a competance of each team member?
A:
1 Elon Musk s Leadership Style Elon Musk s leadership style is often described as transformational and visionary He is known for his hands on approach......
Q:
Determine the mass moment of inertia of the thin plate about an axis perpendicular to the page and passing through point O. The material has a mass per unit area of 20kg/m2. 200 mm 200 mm 200 mm
A:
Composite Parts The plate can be subdivided into two......
Q:
Suppose that the market for hula-hoops is monopolized by a single firm. a. Draw the initial equilibrium for such a market. b. Suppose now that the demand for hula-hoops shifts outward slightly. Show...
A:
a Graph shows shifts in demand and M R for two types of shift b There is no supply curve for a m......
Q:
Suppose a textbook monopoly can produce any level of output it wishes at a constant marginal (and average) cost of $5 per book. Assume that the monopoly sells its books in two different markets that...
A:
First prove the hint In the graph Q max is the quantity demanded when P 0 Since MR 0 at Q max there......
Q:
Let L: P1 P2 be defined by L(p(t)) = tp(t) + p(0). Consider the ordered bases S = [t, 1} and S' - {t + 1, t - 1} for P1, and T = [t2, t, 1} and T' = {t2 + 1, t - 1, t + 1} for P2. Find the...
A:
a b......
Q:
Question: A camper hangs a 22 kgkg pack between two trees, using two separate pieces of rope of different lengths, as shown in the figure below. (Figure 1) What is the tension in left rope? What is...
A:
The detailed......
Q:
Question The motor in a 1590 kg Nissan Leaf electric car Supplies energy the wheels at the rate to of 80 kw. a what's the maximum speed for the Leat when it's ascending, Slope of 13.4 using only its...
A:
The detailed......
Q:
Dynamic viscosity of mixtures is expressed in terms of some of its constituents' properties and flow conditions. A liquid filled with air bubbles is sheared in a flow cell between two parallel walls...
A:
The detailed......
Q:
Vijay has suffering swelling finger of from the palm due to some allergic reactions. However taking Tablet Betnasol to instant relief, but after two days again swelling of palm hand fingers observed....
A:
The detailed answer for the above question is provided below Vijay is experiencing angioedema which......
Q:
A patient presents with sudden-onset severe abdominal pain, nausea, and vomiting. On physical examination, you note rebound tenderness and guarding in the right lower quadrant. Laboratory tests...
A:
The detailed answer for the above question is provided below Question 1 Answer The patient s presentation with sudden onset severe abdominal pain nausea vomiting rebound tenderness guarding elevated w......
Q:
In Exercises use the graph to determine the limit, and discuss the continuity of the function. a. b. c. lim f(x) x-c+
A:
Based on the given graph at point 3 we can see that the function is discontinuous This is because th......
Q:
Describe the Operations (+,,*,/) that can cause negligible addition (NA), error magnification (EM), or subtractive cancellation (SC) in calculating ?((x^2)+1) - x . Give the range of where they might...
A:
Given that Describe the operations Negligible addition NA Error Magnification EM Subtrac......
Q:
For each of the transactions listed in Test Yourself Question 3, what will be the ultimate effect on the money supply if the required reserve ratio is one-eighth (12.5 percent)? Assume that the...
A:
a There is no initial effect on the money supply since deposits of 100 are replaced with cash......
Q:
Why does a modern industrial economy need a central bank?
A:
A central bank promotes the safety of the country s banking system by......
Q:
Explain why the quantity of bank reserves supplied normally is higher and the quantity of bank reserves demanded normally is lower at higher interest rates.
A:
While banks must hold required reserves they also hold ex......
MAT Miller Analogies Test 2nd Edition - ISBN: 0071702318 - Free Book