Calculate the equilibrium price and quantity

Assignment Help Macroeconomics
Reference no: EM13325994

The market demand function for a product sold by a monopolist is given below:

QD = 120 - 4P

The monopolist's marginal cost function is given below:

MC = 1.5Q

a) Find MR.

b) Where do demand and MR intersect the quantity axis?

c) Calculate the equilibrium price and quantity.

Reference no: EM13325994

Questions Cloud

Estimate the costs of such things as rent : Estimate the costs of such things as rent, gasoline, food, in your local area and decide how far the amount of money shown in the chart would go in taking care of a family of four
Suppose the government decides to subsidize exercise by : Suppose the Government decides to subsidize exercise by $2 for every mile (Q) consumers run at a health club that charges by the mile. The current demand for running is Q=12-2p.
Which tool do you think is most commonly used : List three main tools available to the Fed to change the money supply in the economy.
List the various causes of inflation and determine if they : List the various causes of inflation and determine if they are an injection or a leakage. Justify why you selected injection or leakage.
Calculate the equilibrium price and quantity : Where do demand and MR intersect the quantity axis? Calculate the equilibrium price and quantity.
What is the difference between the real exchange rate and : What is the difference between the real exchange rate and the nominal exchange rate? If the nominal exchange rate goes from 120 to 160 pesos per dollar, what has happened to the value of a dollar
Calculate the profit-maximizing price and quantity : Calculate the profit-maximizing price and quantity, if the firm operates in the short run (ignoring any possibility of rivalry
Also determine the level of profit or loss that the firm : Use the total cost (TC) schedule that is presented in the table below to determine the optimal rate of production when the firm can sell all of the output it produces at a price of $6.50 per unit. Also determine the level of profit (or loss) that the..
With the per-unit prices of broccoli b and pork rinds r : With the per-unit prices of broccoli (B) and pork rinds (R) equal to $2 and $1, a consumer, George, with an income of $1,000 purchases 300B and 400R. At that point, the consumer’s MRSBR = 3 R/1 B.

Reviews

Write a Review

 

Macroeconomics Questions & Answers

  Two items which are complements in consumption

If you have two items which are complements in consumption and the price of one of them goes up, what happens to the demand of each of the items.

  How the dentists willing to provide dental services

The government provides national dental insurance benefits for all U.S. citizens that cover 100% of the cost of all dental services. There are two effects of this policy. First, there will be an increase in the number of consumers of dental servic..

  Economically interpret the regression results

Use Excel program to estimate of the state's demand for KBC microbrews in Ohio. Print (past) the computer regression output and provide an economic interpretation of the regression results.

  How much money should spend to purchase health insurance

The poverty rate would be substantially lower if the market value of in-kind transfers were added to family income. The largest in-kind transfer is Medicaid, the government health program for the poor. Let's say the program costs $7,000 per recipi..

  As a government needs to increase tax income

As a government needs to increase tax income, it will often increase the sales tax on gasoline.

  Aztec elasticity of demand for advertising

Aztec depends heavily on advertising to sell its products. Management at Aztec is allowed to spend $2 million monthly on advertising-What is Aztec's elasticity of demand for advertising?

  Americans save much more of their incomes than they

Although the U.S. does not have the highest saving rate in the world, Americans save more money than citizens of every other country

  Demand and supply analysis tax credit

How do you think each of the following affected the world price of oil? (Use demand and supply analysis.)

  What were main benefits from the activities of the goldsmith

By writing more notes than the amount of gold held, the goldsmith could lend the notes and charge interest on them. Did the goldsmith bankers make money out of thin air in a form of legal theft What were the main benefits fromt he activities of the..

  Hope the subsiquent events to affect the price of wine

Explain how would you hope the subsiquent events to affect the price you receive for a bottle of wine.

  Illustrate what role does economics play in your personal

Illustrate what role does economics play in your personal and organizations decisions. Give an example of the role of economics in decision making.

  Solving asymmetric information

A symetric information can have deleterious effects on market outcomes. Discuss a few tactics that managers can use to overcome these problems.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd