Monopolistic competition-determining cost function

Assignment Help Microeconomics
Reference no: EM1370052

You're the manager of monopolistically competitive firm. The present demand curve you face is P=100-4Q. Your cost function is C(Q)=50+8.5Q2 (That's Q squared).

a. What level of output should you choose to maximize profits?

b. What price should you charge?

c. What will happen in your market in the long run? Explain.

Reference no: EM1370052

Questions Cloud

Calculate the monopoly price : Two company face a demand equation given by: P=200,000-6(q1+q2) where q1 and q2 are the outputs of the two firms. The total cost equations for the two company's are given by:
What areas are measured in an ems : What areas are measured in an EMS and how do you determine important areas to measure?
Determine mean time to spend frame to another station : Determine the mean time to spend frame of 1000 bits to another station, measured from beginning of transmission to end of reception? Suppose propagation speed of 100 m/μs.
Calculating output level of a plant : A company has two plants with the following marginal cost functions: MC1 = 20 +2Q1, MC2 = 10 +5Q2 Where MC1 is marginal cost in 1st plant,
Monopolistic competition-determining cost function : You're the manager of monopolistically competitive firm. The present demand curve you face is P=100-4Q. Your cost function is C(Q)=50+8.5Q2 (That's Q squared).
Explain what financial strategies should you develop : Explain What financial strategies should you develop as a result of studying personal financial planning What financial problems might you avoid?
Result of purchasing and managing goods for sale : Net Income Increase as a result of purchasing and managing goods for sale
Create program in visual studio-produce summary of ammounts : Create the program in Visual Studio, C#, 3.5 .Net that will produce the summary of amounts due for Pat's Auto Repair Shop. Display splash screen first.
What music do you associate with childhood : What music do you associate with adolescence? Was this music a way to fit in or rebel and what music do you associate with comfort? How do these songs help you deal with disappointment or stress?

Reviews

Write a Review

Microeconomics Questions & Answers

  Highly inelastic price elasticity of supply

Name three goods or services with highly elastic price elasticity of supply. Name three goods or services with highly inelastic price elasticity of supply.

  Merger and acquisition of firms operating under cournot comp

The question is that if two firms in the Cornout market merge into one firm, what would the merger result in? how much of marginal cost would prevail in the market, etc are answered in a detailed in manner in the solution.

  What is metrica''s gnp

For each of the following transactions, identify whether or not it would be included in GDP:  What is Metrica's GNP? Is it higher or lower than its GDP?

  Determining profit maximizing price and output

You're the marketing manager of a firm that produces Titanium and sells this metal to two distinct kinds of customers: aircraft producers and golf club manufacturers.

  Price-output and profit contribution

Compute the price, output, and profit contribution if the product is not certified. Compute the price, output, and profit contribution if the product is certified. Should the firm undergo the certification process?

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Profits in monopoly-perfectly competitive environment

Assume marginal cost increases to 25 as a result of imposition of a tax. What takes place to monopoly and competitive price and output?

  Determining effect of subsidy

What effect will each of the following have on the supply of automobile tires?

  Equilibrium relative-supply and demand

Suppose that the market for radios is perfectly competitive and there is the simultaneous increase in supply and demand. What can be said about the new equilibrium relative to one before the shifts in supply and demand occurred?

  Monopolistic competition and oligopoly

Why might some people claim that the breakfast cereal industry is monopolistically competitive but that the automobile industry is an oligopoly? In both cases, about eight to ten firms dominate the industry.

  Determining marginal product of labor

Determine whether the firm is operating efficiently, given that its objective is to minimize the cost of producing the given level of output. Determine what changes (if any) in the relative proportions of labor and raw materials need to be made to..

  Economics production cost

Distinguish between explicit and implicit costs, giving examples of each. Differentiate between accounting profit, normal profit and economic profit.

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