The demand and total cost functions for a monopoly firm are: Q(P) = 39.5 – 0.5P TC(Q) = 60 – Q + 0.5 Q What are the firm's fixed and variable costs?
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The demand and total cost functions for a
Q(P) = 39.5 – 0.5P
TC(Q) = 60 – Q + 0.5 Q
What are the firm's fixed and variable costs?
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- The demand and total cost functions for a monopoly firm are: Q(P) = 39.5 – 0.5P TC(Q) = 60 – Q + 0.5 Q2 What are the profit maximising QM and PM for this firm? What is the firm’s profit πM?The names of the compagny is H20 A compagny of water production and distribution company is in a monopoly situation. it's total cost function is given by: CT (q) = q² + 10q where q represents the quantities produced in millions of m ^ 3 of water. She is faced with the following request p = 50-4q with p the price in cents. Please answer the following question a) Calculate the price, quantity and monopoly profit of H20 b) Represent the demand curves of average cost, marginal cost and marginal revenue of H20 c) H20 learns from the news that a potential entrant wants to enter the market by selling 5 units at a unit cost of 20. Determine the price level below which H20 can set a limit price Then check whether the monopoly price calculated in question 1 can be considered a limited price d) Would H20 remain profitable if the entrant were to enter the market anyway ? (for this you have to calculate the market price that will rise as a result of the entry of the competitor) e) The entrant…A compagny WasserProduct, a water production and distribution company is in a monopoly situation. it's total cost function is given by: CT (q) = q² + 10q where q represents the quantities produced in millions of m ^ 3 of water. She is faced with the following request p = 50-4q with p the price in cents. 1) Calculate the price, quantity and monopoly profit of WasserProduct 2) Represent graphically the demand curves of average cost, marginal cost and marginal revenue of WasserProduct 3) WasserProduct learns from the news that a potential entrant wants to enter the market by selling 5 units at a unit cost of 20. Determine the price level below which WasserProduct can set a limit price (it's possible that i need to use the inequality PL < Ce + |a|Qe) Then check whether the monopoly price calculated in question 1 can be considered a limited price 4) Would WasserProduct remain profitable if the entrant were to enter the market anyway (for this you have to calculate the market price that…
- The demand curve facing a firm operating under monopoly is given by; P = 170 – 5Q The cost function is given by; TC = 40 + 50Q + 5Q2 Determine the profit maximizing price and quantityIf demand function of monopoly firm is given by P = 25 - Q and Total cost function TC = 2Q. Calculate profit maximizing quantities under monopoly.Company XYZ has a monopoly in its market for one of its' products and it serves 3 regional markets with regional demand functions given by. • Market 1: Q1 = 9 – (0.05) P1 • Market 2: Q2 = 10 – (0.1) P2 • Market 3: Q3 = 16 – (0.2) P3 The firm must make more than 10 units: Q > 10. The firm's cost function is C=490-50Q+2.5 Q2. The marginal cost is the same across all markets. Use Excel to set up this problem and: a) Identify the profit-maximizing output values for each market. b) Identify the surplus for each market and profit for the entire market. c) The output, price, and profit if the firm were not to differentiate across the markets? -
- If demand function of monopoly firm is given by P = 25 - Q and Total cost function TC = Q. Calculate monopoly quantitiesb) The market demand curve for a monopoly firm is given as P= 200 - 20. Furthermore, the marginal cost is represented by the equation MC = 20 + 2Q. The firm's TC can be expressed as TC 20Q + Q + 100. Use this information to answer the questions and calculate the following: i) Profit maximizing quantity and price.The demand curve faced by a monopoly firm is given by the function P = 58500- 8.9Q What is the absolute value of the slope of its marginal revenue curve? Note: the absolute value refers to the value of a number after ignoring its sign. For example, the absolute value of -100 is 100. Answer
- Suppose a monopoly firm with a constant marginal cost 10 faces an inverse linear demand function p = 50 - Q. What would be the profit-maximizing price and quantity if its marginal cost doubles? How does it compare to the outcome with original cost?Suppose a monopoly firm’s total cost of production TC = f + c•Q where f > 0 and c > 0. Is this firm a “natural monopoly”? Answer ‘Yes” or “No” based on your explanation of the meaning of a “natural monopoly.”Given the following information for a monopoly firm: Demand: P = 80 - 5(Q) Marginal revenue: MR = 80 - 10(Q) Marginal cost: MC = 2(Q) + 8 Average total cost at equilibrium is 30 1. At what output (Q) will this firm maximize profit? Number 2. At what price (P) will this firm maximize profit Number 3. What is the total revenue (TR) earned at this output level Number 4. What is the total cost (TC) accrued at this output Number Number 5. What profit is earned Assume this firm is to be regulated. Answer the following questions: 6. Under the Marginal Cost Pricing,what is the optimal quantity Number 7. Under the Marginal Cost Pricing,what is the optimal price Number
