The manager of a local monopoly estimates that the elasticity of demand for its product is equal to -4. The firm’s marginal cost is 25. Express the firm’s marginal revenue as a function of its price then determine the profit-maximizing price
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The manager of a local
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- A monopoly faces a demand elasticity of -5 and marginal cost of $1, what is the optimal monopoly price? (Calculate using the monopoly pricing formula) What is the Lerner index?The inverse demand curve a monopoly faces is p=120-2Q. The firm's cost curve is C(Q) = 40 +6Q. What is the profit-maximizing solution? The profit-maximizing quantity is 28.50. (Round your answer to two decimal places.) The profit-maximizing price is $63.00. (round your answer to two decimal places.) What is the firm's economic profit? The firm earns a profit of $ 1584.50. (round your answer to two decimal places.) How does your answer change if C(Q)= 100+6Q? The increase in fixed cost OA. has no effect on the equilibrium quantity, but the equilibrium price increases and profit decreases. B. causes the firm to increase both the price and quantity, and profit increases. OC. has no effect on the equilibrium quantity, but the equilibrium price increases and profit increases. D. has no effect on the equilibrium price and quantity, but profit will decrease.A monopoly has an inverse demand function of P = 300 – Q and a marginal cost function of MC = Q. Calculate the quantity Q and price P that will maximize profits. Also calculate profits.
- For a monopoly firm, marginal revenue when demand is price inelastic. when demand is price elastic and is Falling ; rising Negative ; positive Rising ; falling Positive ; negativeYou are the manager of a Monopoly firm, and your demand function is determined by P = 30 - 20 and TC = 10 + 3Q2. a. What is the price-quantity combination that maximizes the firm's profit? b. Calculate the maximum profit!The Spacing Guild has a monopoly on space transport. They sell tickets(Q) for seats on starships for interstellar travel at a per-ticket price of P. Alltickets cost the same. The Marginal Cost for each seat is $14 and there are no other costs.Market demand is Q=315-2P. What is the absolute value of the elasticity of demand at the point wherethe Guild produces?
- What economic formula or graph does the Anti-Trust Department follow before they decide to break up a monopoly? Multiple Choice They look to see if MC=MR is beyond $10 billion. They try to calculate if price elasticity is less than .25 and inelastic. They do not use any commonly known formulas or graphs. Often times it is based on normative economics and/or it could be politically motivated. The number of registered consumer complaints must be beyond 10,000.For a monopoly firm, the demand equation is P = 10 –3Q, marginal revenue is MR = 18 - 4Q, marginal cost is MC = 2Q. a) The profit maximizing quantity is ___ units. b) The profit maximizing price is $___ per unit.The monthly demand function for a product sold by a monopoly is p = 5900 − 1/2x2 dollars, and the average cost is C = 3090 + 2x dollars. Production is limited to 100 units. a. Find the revenue function R(x). b. Find the cost function, C(x). c. Find the profit function, P(x). d. Find P'(x). e. Find the number of units that maximizes profits. (Round your answer to the nearest whole number.) f. Find the maximum profit. (Round your answer to the nearest cent.)
- Define the income elasticity of demand What is a normal and an inferior good? Define the cross-price elasticity of demand Compare and contrast monopoly and perfect competition market structure in long-run.Demand P(q)=100-2q Total Costs C(q)=10+20q . calculate monopoly price and quantity.The inverse demand curve a monopoly faces is p = 130 - Q. The firm's cost curve is C(Q) = 10 +5Q. What is the profit-maximizing solution? The profit-maximizing quantity is 62.5. (Round your answer to two decimal places.) The profit-maximizing price is $ 67.5. (round your answer to two decimal places.) What is the firm's economic profit? The firm earns a profit of $. (round your answer to two decimal places.)