Determine the profit-maximizing output and price

Assignment Help Microeconomics
Reference no: EM13867175

The accompanying diagram shows the demand, marginal revenue, and marginal cost of a monopolist

a.       Determine the profit-maximizing output and price. Explain. Just don't state the answer

b.      What price and output would prevail if this firm's product were sold by price-taking in a perfectly competitive market?Explain. Just don't state the answer

c.       What conclusion can draw between a firm operating as a competitor and  monopolist in terms of

i)                    Output produced

ii)                   Price charge

 

Price($)

120

 

 

 

 

 

 

MC

 

 

 

 

110

 

 

 

 

 

 

 

 

 

 

100

 

 

 

 

 

 

 

 

 

 

 

90

 

 

 

 

 

 

 

 

 

 

 

80

 

 

 

 

 

 

 

 

 

 

 

70

 

 

 

 

 

 

 

 

 

 

 

60

 

 

 

 

 

 

 

 

 

 

 

50

 

 

 

 

 

 

 

 

 

 

 

40

 

 

 

 

 

 

 

 

 

 

 

30

 

 

 

 

 

 

 

 

 

 

 

20

 

 

 

 

 

 

 

 

 

 

 

10

 

 

 

 

 

 

 

 

 

D

 

0

 

 

 

 

 

MR

 

 

 

 

 

 

0

1

2

3

4

5

6

7

8

9

10   Quantity

 

Question 7

The supply curve of a single firm under perfect competition is that portion of the MC curve above the minimum point of the AVC curve. How about the supply curve of the monopolist? Does the monopolist have a supply curve? Discuss

Reference no: EM13867175

Questions Cloud

Creating a worksheet for the weekly employee payroll data : You are the human resources manager for a company called Mighty Tech Solutions, which provides support and repair services for computer related problems. You are in the process of creating a worksheet for the weekly employee payroll data
Managing a team in any organization is a critical component : Managing a team in any organization is a critical component of the organization's success.  Team managers should therefore consider adopting effective team management strategies in order to achieve optimum performance from their employees.
Soft touch company was started several years ago : Prepare the statement of cash flows for the current year ended December 31 using the indirect method. Use the statement of cash flows to evaluate the company's cash flows.
Speed control of a dc motor : The objective of this laboratory is to study and implement speed control of a dc motor.
Determine the profit-maximizing output and price : The accompanying diagram shows the demand, marginal revenue, and marginal cost of a monopolist a.       Determine the profit-maximizing output and price. Explain. Just don't state the answer b.      What price and output would prevail if this firm'..
Benefits of physical wellness plan : Type of paper :Wellness PlanTopic:  Benefits of Physical Wellness plan
Calculate the average retail price of all the products : Calculate the retail price of each product, assuming a 2.3% markup of the wholesale price. Calculate the average retail price of all the products. Calculate the total value for each product (hint: use the retail price, not the wholesale price)
What is the best estimate for total mass of the rod : What is the best estimate for total mass of the rod and Determine the value of VL for a person of age 65 and determine the heat absorbed by a collector.
An estimated economic life of eight years and no residual : On January 1, 2010, Nelson Company leases certain property to Queens Company at an annual rental of $60,000 payable in advance at the beginning of each year for eight years.

Reviews

Write a Review

Microeconomics Questions & Answers

  Explain the differences between the two demand functions

One can derive a demand function for health and for medical services from the Grossman model. Explain the differences between the two demand functions. Why does demand for health and for medical services depend on age?

  Use the macroprudential policy tools to control financial

Do regulators need to use the macroprudential policy tools to control financial risks?

  How sensitive isthe demand for money to changes

In U.S. data, how sensitive isthe demand for money to changes in nominal interest rates?Whatare the consequences of an increase in the money supply on output and the pricelevel? Does your answer depend on where the economy starts (whether it is inlon..

  Marginal cost of the merged firm

If the merged firm were able to exploit economies of scale it would affect costs, may be even marginal costs. Assume the marginal cost of the merged firm was not 40, but 30. Is the merger profitable in this case?

  Did pfizer violate any ethical standards

Rabi Abdullahi and other Nigerian children filed a suit in a U.S. federal district court against Pfizer, alleging a violation of a customary international law norm prohibiting involuntary medical experimentation on humans. Did Pfizer violate any e..

  Circular flow model of a simple economy

Identify whether each of the following events in this scenario occurs in the resource market or the product market - Determine whether each of the following would more likely be studied in microeconomics or macroeconomics.

  What is the total price per widget paid by widget buyers

Demand in the widget market is given by QD = 30 – P, and supply is given by Qs = P + 6. The government imposes a tax on suppliers of t on every widget sold. After the tax is imposed, what is the total price per widget paid by widget buyers?

  Explain comparative advantage of in the production of corn

felix and kim are farmers.each one owns 5 acres of land the following table shows the amount of corn and alfelfa each farmer can produce on any given acre. both farmers can chose wheater to devot 5 acres for producing corn only, alfelfa only,or to..

  What is the dollar value of the deadweight loss when output

What is the dollar value of the deadweight loss when output level Q3 is produced? What is the dollar value of the total surplus when output level Q3 is produced?

  How is aggregate demand curve derived what would cause

how is an aggregate demand curve derived? what would cause the aggregate demand curve to shift to the right? explain

  The government passes a law that allows a substantial

The government passes a law that allows a substantial subsidy for every acre of land used to grow tobacco. How does this program affect the long-run supply curve for tobacco?

  In a competitive industry-the market-determined price

In a competitive industry, the market-determined price is $12. For a firm currently producing 50 units of output, average total cost is $14, short-run marginal cost is $15 and average variable cost is $7. a. Is this firm making the profit-maximizing ..

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