Calculate the profit-maximizing quantity

Assignment Help Business Economics
Reference no: EM131524033

A drug company has a monopoly on a new class of corticosteroid. The market demand is given by P=260-0.002*Q. The monopolist's costs are described by TC=8,000,000+2Q. Calculate the profit-maximizing quantity.

A drug company has a monopoly on a new class of corticosteroid. The market demand is given by P=260-0.002*Q. The monopolist's costs are described by TC=8,000,000+2Q. Calculate the profit-maximizing price.

A drug company has a monopoly on a new class of corticosteroid. The market demand is given by P=260-0.002*Q. The monopolist's costs are described by TC=8,000,000+2Q. Calculate the maximum profit.

Reference no: EM131524033

Questions Cloud

Discuss the statistical model of bankruptcy : An accounting friend of yours has gone to great lengths to construct a statistical model of bankruptcy. Using the model, the probability that a firm will file.
What will be firm cost of common equity using capm approach : what will be the firm's cost of common equity using the CAPM approach?
Write down the probability number for the given phrase : For each of the following phrases write down the probability number that you feel is represented by the phrase.
What are the factors driving this strategy : Describe Google’s investment strategy? What are the factors driving this strategy? How might shareholders eventually react to this strategy?
Calculate the profit-maximizing quantity : The market demand is given by P=260-0.002*Q. The monopolist's costs are described by TC=8,000,000+2Q. Calculate the profit-maximizing quantity.
Calculate the absolute value of the price : In response to a price increase from $4.75 to $4.99, sales quantity decreases 125 to 113. Calculate the absolute value of the price elasticity of demand.
Explain the equivalent lottery method : Assess your probability that the following outcomes will occur. Use the equivalent lottery method as discussed in the chapter.
Calculate the absolute value of the price : In response to a price decrease from $27 to $22, sales quantity increases 13,200 to 14,800. Calculate the absolute value of the price elasticity of demand.
Calculate the equilibrium price : A local market for clay bricks has weekly demand described by P=1.55-0.008Q and supply described by P=0.32+0.0012Q. Calculate the equilibrium price.

Reviews

Write a Review

Business Economics Questions & Answers

  Regarding how historian should chronicle a plague

What common assumptions guide the Thucydides and Procopius readings regarding how a historian should chronicle a plague? What different assumptions do they possess about both human behavior and the role divine forces play in human history? How do bot..

  Consumption and income

Suppose you consume nothing but goods X and Y. We have two years.

  What are some possible explanations for retail sales

During the same period, retail sales in Japan fell 1.8 percent in real terms. What are some possible explanations for retail sales to consumers falling when GDP rises?

  What is the largest constant consumption stream

What is the largest constant consumption stream you can afford?

  Cost function-what are elements required to form contract

A firm making external hard drives has a cost function c(y) = 4y + 1000. Its demand function is y = 200 – 0.5p. a. Calculate the profit-maximizing price and quantity. b. The firm decides to enter the Mexican market. It determines that its demand func..

  Charging below-cost tuition

All U.S. states subsidize education for college students, mostly by charging below-cost tuition. Nearly -free tuition is available in many European countries and has been proposed in California (see p. 80).

  Firms have short-run supply curve with slope

An industry has 1000 competitive firms, each producing 50 tons of output. At the current market price of $5, half of the firms have a short-run supply curve with a slope (change in quantity/change in price) of 1; the other half each have a short-run ..

  Monopoly-monopolistic competition and oligopoly

Create graphs and tables to illustrate costs and revenues for firms in different market structures. You have learned about the market structures of pure competition, monopoly, monopolistic competition, and oligopoly. In this assignment, you will appl..

  How much should you be able to get if you sell your future

how much should you be able to get if you sell your future inheritance to the Neopolitan Bank (or any other bank) right now? Explain your work and why your answer makes intuitive sense.

  What principle are the restaurants relying on

All-you-can-eat restaurants allow customers to eat as much as they want for a fixed price. These types of restaurants must make money or they would not remain in business. How can they earn profits when people can always eat more which would increase..

  How much is bought-how much is spent

A. Solve for P, and give the y-intercept & slope [change in P/change in Q] of the line. B. If price is 100 (ignore units here), how much is bought & how much is spent?

  Overcome the free-rider problem

When a good generates external benefits, collective decision making generates more efficient choices. The free-rider problem arises because. Which of the following is likely to overcome the free-rider problem?

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