# 4. A monopolist has a constant marginal and average cost of $10

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### Economics/Algebra

A monopolist has a constant marginal and average cost of $10 and faces a demand curve of QD = 100 - 10P. Marginal revenue is given by MR=100-.20P. a. Calculate the monopolist's profit maximizing quantity, price, and profit. b. Now suppose that the monopolist fears entry, but ...

### Economics

. Suppose the demand curve for a monopolist is QD =500 - P, and the marginal revenue function is MR =500 – 2Q. The monopolist has a constant marginal and average total cost of $50 per unit. a. Find the monopolist’s profit – maximizing output and price. b. Calculate the ...

### economics

Suppose the demand curve for a monopolist is QD = 500 − P, and the marginal revenue function is MR = 500 − 2Q. The monopolist has a constant marginal and average total cost of $50 per unit. a.Find the monopolist’s profit-maximizing output and price. b. ...

### Economics/Math

The demand curve for a monopolist is Qd = 500 - P and the marginal revenue function is MR = 500 - 2P. The monoploist has a constant marginal and average total cost of $50 per unit. a. Find the monopolist's profit maximizing output and price b.Calculate the monopolist's profit...

### Economics/Algebra

The demand curve for a monopolist is Qd = 500 - P and the marginal revenue function is MR = 500 - 2P. The monopoloist has a constant marginal and average total cost of $50 per unit. a. Find the monopolist's profit maximizing output and price b.Calculate the monopolist's profit...

### To: Economyst - Can you please help me?

The demand curve for a monopolist is Qd = 500 - P and the marginal revenue function is MR = 500 - 2P. The monopoloist has a constant marginal and average total cost of $50 per unit. a. Find the monopolist's profit maximizing output and price b.Calculate the monopolist's profit...

### Economics

Suppose the demand curve for a monopolist is Qd = 500 – P, and the marginal revenue function is MR = 500 -2Q. The monopolist has a constant marginal and average total cost of $50 per unit.

### Economics

Suppose the demand curve for a monopolist is Qd = 500 – P, and the marginal revenue function is MR = 500 -2Q. The monopolist has a constant marginal and average total cost of $50 per unit. A. Find the monopolist’s profit- maximizing output and price. B. Calculate the ...

### economics

Suppose a monopolist faces an inverse demand function P=100-1/2Q, and the monopolist has a fixed marginal cost of $20. How much more would the monopolist make from perfect price discrimination compared to simply producing where marginal revenue equals marginal cost?

### Macroeconomics

You want to determine the profit-maximizing production quantity for a monopolist. You can ask the firm's consultant to draw the firm's revenue and cost curves, but each curve would cost you $1,000. From the following list indicate which curves you will request and why? a) ...

### econ

You want to determine the profit-maximizing production quantity for a monopolist. You can ask the firm's consultant to draw the firm's revenue and cost curves, but each curve would cost you $1,000. From the following list indicate which curves you will request and why? a) ...

### Macroeconomics

I need help to answer this question? You want to determine the profit-maximizing production quantity for a monopolist. You can ask the firm's consultant to draw the firm's revenue and cost curves, but each curve would cost you $1,000. From the following list indicate which ...

### Economics

A PURE MONOPOLIST SELLS OUTPUT FOR $4 PER UNIT. THE MARGINAL COST IS $3, AVERAGE VARIABLE COSTS ARE $3.75, AND AVERAGE TOTAL COSTS ARE $4.25. THE MARGINAL RVENUE IS $3. WHAT IS THE SHORT RUN CONDITION FOR THE MONOPOLIST AND WHAT OUTPUT CHANGES WOULD YOU RECCOMMEND IN THE ...

### ECON

A pure monopolist sells output for $4.00 per unit at the current level of production. At this level of output, the marginal cost is $3.00, average variable costs are $3.75, and average total costs are $4.25. The marginal revenue is $3.00. What is the short-run and long-run ...

### economics

A monopolist faces an upward-sloping marginal cost curve. Its profit-maximizing quantity will be a. at the minimum point of the marginal cost curve b. less than the (total) revenue-maximizing quantity c. equal to the (total) revenue-maximizing quantity d. in the unit elastic ...

### econ

12. A monopolist faces a constant marginal cost of $1 per unit. If at the price he is charging, the price elasticity of demand for the monopolist’s output is –0.5, then

### Microeconomics

The following table indicates the prices various buyers are willing to pay for a Miata sports car: Buyer A Maximum price $50,000 Buyer B Maximum price $40,000 Buyer C Maximum price $30,000 Buyer D Maximum price $20,000 Buyer E Maximum price $10,000 The cost of producing the ...

### college/microeconomics

The following table indicates the prices various buyers are willing to pay for a Miata sports car: Buyer A Maximum price $50,000 Buyer B Maximum price $40,000 Buyer C Maximum price $30,000 Buyer D Maximum price $20,000 Buyer E Maximum price $10,000 The cost of producing the ...

### Economics

5. A firm's marginal cost of production is constant at $5 per unit, and its fixed costs are $20. Draw its total, average variable and average costs. Marginal Cost (MC): $5 per unit Fixed Cost (FC): $20 Total Cost (TC): $25 Average Variable Cost (AVC): $5 FC is always going to ...

### microeconomic

Consider a monopolist facing a demand curve given by P = 20 – q, where P is the market price and q is the quantity sold. The monopolist's marginal costs are MC = 2 per unit and a fixed cost of $20. What is the monopolist's profit it is charges a uniform price?

### ecoc

TC=50+16 Q -2 Q2+0.2 Q3 a.plot this curve for quantites 1 to 10 b.calculate the average total cost,average variable cost, and marginal cost for these quantities, and plot them on another graph c. discuss your results in term of decreasing,constant, and increasing marginal costs.

### math/economics in calculus

The average cost of manufacturing a quantity q of a good, is defined to be a(q) = C(q)/q. The average cost per item to produce q items is given by a(q) = 0.01q2 − 0.6q + 13, for q >0. I know that the total cost is 0.01q^3-0.6q^2+13q What is the minimum marginal cost? ...

### Microeconomics

When average total cost is declining then: a) marginal cost must be less than average cost b) marginal cost must be greater than average cost c) average toal cost must be greater than average fixed cost d) average variable cost must be declining. My answer is d but my friend ...

### Precalculus

Johnny's Tumblers sells plastic cups in bulk for start-up restaurants. Their cost for producing these is modeled by: c(x) = 0.02x^2 + 0.5x + 40 a) Since the marginal cost is found by taking the derivative, the formula for c'(x)= ? (My answer: 0.04x + 0.5) b) The marginal ...

### Economics

Suppose there are three types of chip consumers in the world with three different inverse demand functions given by Pa=30-1/2P, Pb=40-1/2P, and Pc=50-1/2P. The marginal cost of the monopoly that produces chips is a constant $20. What size packages should the perfectly price ...

### Economics

(a) Explain what is meant by the term “natural monopoly”. (b) Construct a diagram showing the average and marginal cost curves, and the demand and marginal revenue curves for a natural monopoly. Use your diagram to explain why profit maximising behaviour by the monopolist ...

### ecoc

i can not figure this out the economist for the grand corporation has estimated the company's cost function, using time series data, to be TC=50+16Q-2Q2+0.2Q3 a.plot this curve for quantites 1 to 10 b.calculate the average total cost,average variable cost, and marginal cost ...

### Microeconomics

In a natural monopoly: A) Society would be better off if antitrust laws were used to create many different firms in the market B) The marginal cost curve is positively sloped C) If the government requires marginal cost pricing, it must pay the monopolist subsidy D) The ...

### Economics

1. The law of diminishing returns implies that at some output level: a) Marginal cost must fall b) Average total cost must diminish c) profit increases d) Marginal cost must rise e) Total cost must fall 2. The vertical distance between total cost curve and total variable cost ...

### econ

The economist for the Grand Corporation has estimated the company’s cost function, using the times series data to be TC=50+16Q-2Q2+0.2Q3 a. Plot this curve for quanties 1 to 10 b. Calculate the average total cost, average variable cost and marginal cost for these quanties, ...

### home economics

The economist for the Grand Corporation has estimated the company’s cost function, using the times series data to be TC=50+16Q-2Q2+0.2Q3 a. Plot this curve for quanties 1 to 10 b. Calculate the average total cost, average variable cost and marginal cost for these quanties, ...

### Econ

A firm faces the following Average Cost function AC=1500Q^-1 + 300-27Q+1.5Q^2 Calculate the output level that minimizes: a) Marginal Cost b)Average Variable cost I need some help on this question. Thanks. If the average cost is AC=1500Q^-1 + 300-27Q+1.5Q^2 , then that is the ...

### Economics

Suppose that a firm is currently employing 30 workers, the only variable input, at a wage rate of $60. The average product of labor is 30, the last worker added 12 units to total output, and total fixed cost is: $3,600. a. What is marginal cost? b. What is average variable ...

### Economics

Suppose that a firm is currently employing 30 workers, the only variable input, at a wage rate of $60. The average product of labor is 30, the last worker added 12 units to total output, and total fixed cost is: $3,600. a. What is marginal cost? b. What is average variable ...

### Economics

Hey just needed some pointers on the following questions. True or False? Explain.. 1. As long as the firm has to pay for an input, it would be wasteful not to use all input services purchased? 2. A profit-maximising competitive firm will never produce in the region where ...

### econimics

state whether the monopolist would increase or decrease output: a. Marginal revenue exceeds marginal cost at the output produced. b. Marginal cost exceeds marginal revenue at the output produced.

### math

The average cost of manufacturing a quantity q of a good, is defined to be a(q) = C(q)/q. The average cost per item to produce q items is given by a(q) = 0.01q2 − 0.6q + 13, for q >0. (a) What is the total cost, C(q),of producing q goods? For this do I just put the ...

### Economics

Yeah, so I'm in urgent need of help with this homework. 1. Assume that in a perfectly competitive market, a firm's costs and revenue are: Marginal cost = average variable cost at $20 Marginal cost = average total cost at $30 Marginal cost = average revenue at $25 A) How will ...

### Managerial Economics

Suppose that a firm is currently employing 10 workers, the only variable input, at a wage rate of $100. The average physical product of labor is 25, the last worker added 10 units to total output, and total fixed cost is $5,000. a. What is marginal cost? b. What is average ...

### Managerial ECON

Suppose that a firm is currently employing 10 workers, the only variable input, at a wage rate of $100. The average physical product of labor is 25, the last worker added 10 units to total output, and total fixed cost is $5,000 a. What is marginal cost? b. What is average ...

### Economics

The market for fertilizer is perfectly competitive. Firms in the market are producing output, but they are currently making economic losses. a. How does the price of fertilizer compare to the average total cost, the average variable cost, and the marginal cost of producing ...

### Help!Microeconomics

Central Crude Oil is a crude oil monopoly in a market. The following table shows the liner demand schedule of this firm which cannot apply price discrimination. The firm's fixed cost is $2000 per month and its marginal cost is a constant of $20 per thousand of cubic feet. ...

### advanced math

The marginal cost of a product can be thought of as the cost of producing one additional unit of output. For example, if the marginal cost of producing the 50th product is $6.20, it cost $6.20 to increase productionn from 49 to 50 units of output. Suppose the marginal cost C(...

### Algebra

83. Minimizing Marginal Cost The marginal cost of a product can be thought of as the cost of producing one additional unit of output. For example, if the marginal cost of producing the 50th product is $6.20, it cost $6.20 to increase production from 49 to 50 units of output. ...

### Micoreconomics

As a general rule, profit-maximizing producers in a competitive maket produce output at a point where: A) Marginal cost is increasing B) Marginal cost is decreasing C) marginal revenue is increasing D) Price is less then marginal revenue I picked C? The short-run supply curve ...

### Business Calculus

A company has operating costs of $2000 per thousand items produced. Its revenue function can be modeled by the equation: R(x)=30x/(x+2)² , where x is measured in thousands of items produced, and C and R are measured in thousands of dollars (so C(x)=2). 1. Determine the price-...

### Microeconomics

As a general rule, profit-maximiaing producers in a competitive maket produce ouput at a point where: A) marginal cost is increasing B) marginal cost is decreasing C) marginal revenue is increasing D) price is less than marginal revenue I was picking C for the answer? The ...

### MATHS

A company is a monopolist. The demand function for its product is as follows: Q = 60 – 0.4P + 6Y + 2A Where Q = quantity sold in units P = Price per unit Y = per capita disposal income (thousands of dollars) A = hundreds of dollars of advertising expenditures The firm’s ...

### Economics

50. In both monopolistic competition and non-price-discriminating monopoly, isn't the marginal revenue curve lies below the demand curve? 51. A monopolistically competitive firm is producing an output level where marginal revenue is greater than marginal cost. This firm should...

### Managerial Economics

A monopoly can produce any level of output it wishes at a constant marginal (and average) cost of $5 per unit. Assume the monopoly sells its goods in two different markets separated by some distance. The demand curve in the first market is given by Q1 = 55 - P1, and the demand...

### Microeconomics

In the shortrun function of a company with a constant variable cost is given by the equation q=225+55q,where TC is the total cost and q is the total quantity of output,both measured in thousands.1.what is a company's fixed cost?2.if the company produced 100,000 units of goods,...

### Economics

Suppose Honda's total cost of producing 4 cars is $225,000 and its total cost of producing 5 cars is $250,000 a)What is the average total cost of producing 5 cars b)What is the marginal cost of the fifth car? c)Draw the marginal cost curve and the average total cost curve for ...

### economics

# You produce shoes. Currently you produce 4 pairs of shoes at a total cost of %40. a)what is your average total cost (ATC) b)Suppose you could produce one more( fifth)pair at a marginal cost of $20. If you do produce that fifth pair of shoe, what will your average total cost ...

### Economics

A monopolist is currently producing a level of output where Price = $110; Marginal Revenue = $10; Quantity = 100; Total Cost = $15,000; Marginal Cost = $10; Total Fixed Cost = $4,000. 1. To maximize profits in the short-run, the monopolist should: (a) Increase output (b) ...

### Economics

A monopolist is currently producing a level of output where Price = $110; Marginal Revenue = $10; Quantity = 100; Total Cost = $15,000; Marginal Cost = $10; Total Fixed Cost = $4,000. 1. To maximize profits in the short-run, the monopolist should: (a) Increase output (b) ...

### Economic

How is income distribution affected in monopolies? The market for fertilizer is perfectly competitive. Firms in the market are producing output, but they are currently making economic losses. a. How does the price of fertilizer compare to the average total cost, the average ...

### Calculus

Given that C(x)=2x^3-21x^2+36x+1000 is a cost function, determine the intervals for which the cost is increasing. Determine any intervals for which the marginal cost is increasing. Marginal cost is when you derive the cost function, correct? So do you do the second derivative ...

### Calculus PLEASE HELP

Given that C(x)=2x^3-21x^2+36x+1000 is a cost function, determine the intervals for which the cost is increasing. Determine any intervals for which the marginal cost is increasing. Marginal cost is when you derive the cost function, correct? So do you do the second derivative ...

### Economics

Variable cost divided by the change in quantity produced is A. average variable cost. B. marginal cost. C. average total cost. D. None of the above is correct.

### Calculus

How do you show that the minimum average cost occurs when the average cost equals the marginal cost?

### Microeconomics

A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue of $10, average total cost of $8, and ficed costs of $200. What are the firm's profit, marginal cost, and average varible cost respectively?

### Economics

TFC = $1,000 MC = $1 (and constant) 2.Assume that all households have the same demand schedule which is given by the following relationship: P = 10 – 2Q. If there are 400 households in the market, state what the market demand schedule and marginal revenue schedule look like ...

### managerial economics

Question #6 The owner of Taco Joe’s has estimated that if he lowers the price of a burrito from $2.00 to $1.50, he will increase sales from 400 to 500 burritos per day. The demand for burritos is A) elastic. B) inelastic. C) unitary elastic. D) perfectly elastic. Question #7...

### economics

For the total variable cost (TVC), draw a positive total fixed cost (TFC) and total cost (TC) curves. Then derive the associated marginal cost (MC), average total cost (ATC), average variable (AVC) and average fixed cost (AFC) curves. Be sure to capture and explain the ...

### ECONOMICS

suppose that the short run costs for a paintbrush manufacturer are given by the expression: TC= 100+2Q+.01 Q2 A. WAT ARE THE FIXED COSTS OF THIS MANUFACTURE? B. WHAT ARE THE TOTAL COSTS , AVERAGE COST, AVERAGE VARIABLE COST AND MARGINAL COST AT 50 AND 100 UNITS OF OUTPUT? C. ...

### economics

could you calulate the total, average variable, and average cost, when a company marginal cost of production is $5.00 per unit and fixed costs are $20.00

### economics

could you calulate the total, average variable, and average cost, when a company marginal cost of production is $5.00 per unit and fixed costs are $20.00

### Microeconomics - determining how many to sel

Hi, I would really appreciate it if someone could help me with these questions: An author earns royalties from his book that are specified as 10% of the book's selling price. The demand curve for this is straight and downward sloping. 1. What rule does the author want his ...

### economics

A profit-maximizing firm in a competitive market is currently producing 100 units of output. It has average revenue so $10, average total cost of $8 and fixed cost of $200. a. what is the profit? b. what is the marginal cost? c. what is its average variable cost? d. is the ...

### Managerial ECON

Suppose that a firm is currently employing 20 workers, the only variable input, at a wage rate of $60. The average product of labor is 30, the last worker added 12 units to total output, and total fixed cost is $3,600. a. What is marginal cost? b. What is average variable cost...

### economics

HELP!!!!! One and only Inc is a monopolist. The demand function for its product is estimated to be Q=60-0.4P +6Y+2A Y=3,000 P=Price per Unit Y=Per capita disposable personal income (thousands of dollars) A=hundreds of dollars of advertising expenses The Firms average variable ...

### home economics

Imagine that the efficient provision of telephone calls in a medium-sized city involves an initial investment of $100 million financed by borrowing at 6 percent and variable cost of 5 cents a phone call. The phone company's annual fixed cost would be $6.0 million (6.00 percent...

### economics

A firm has fixed costs of $30.00 and variable costs as indicated in the table below. Complete the table. Instructions: Round your answers so that you enter no more than 2 decimal places. Total Product Total Fixed Cost Total Variable Cost Total Cost Average Fixed Cost Average ...

### economics

A monopoly firm is different from a competitive firm in that A. there are many substitutes for a monopolist's product while there are no substitutes for a competitive firm's product B. a monopolist's demand curve is perfectly inelastic while a competitive firm's demand curve ...

### Economics

Suppose the total output curve increases at an increasing rate for workers 1 to 50, increases at a decreasing rate from workers 51 to 101, and decreases beyond 101 workers. You would know that Choose one answer. a. marginal product is increasing from workers 1 to 50 and then ...

### Economics/Math

In a perfectly competitive industry, the market price is $25. A firm is currently producing 10,000 units of output, its average total cost is $28, its marginal cost is $20, and its average variable cost is $20. Given these facts, explain whether the following statements are ...

### Math

For the given cost function 16 sqrt x+x^2/3375 The marginal cost at the production level 1700 The minimal average cost

### economics

Give a numerical example to show that a monopolist's marginal revenue can be upward-sloping over part of its range. Hint: The price on the demand curve is the producer's average revenue

### economics

Give a numerical example to show that a monopolist's marginal revenue can be upward-sloping over part of its range. Hint: The price on the demand curve is the producer's average revenue

### Math - average rate problems(check + help)

The total cost, c, in dollars of operating a factory that produces kitchen utensils is C(x)=0.5x^2+40x+8000, where x is the number of items produced in thousands. a)Determine the marginal cost of producing 5000itmes and compare this with the actual cost of producing the 5001st...

### Economics (attempted as suggested by economyst)

Posted by eStone on Sunday, March 29, 2009 at 5:47pm. Suppose that a firm is currently employing 30 workers, the only variable input, at a wage rate of $60. The average product of labor is 30, the last worker added 12 units to total output, and total fixed cost is: $3,600. a. ...

### Econ

If a pure monopolist can price discriminate by separating buyers into two or more groups: A.the marginal revenue curve and the total revenue curve will now coincide. B.the marginal revenue curve will now shift to a position above the demand curve. C.the firm will face multiple...

### elements of calculus

cost, revenue, and profit are in dollars and x s the number of units cost: if the cost function for a particular good is C(x)= 3x^2 +6x + 600, what is the (a) marginal cost function (b) marginal cost if 30 units are produced? (c) interpretation of your answer in part (b)?

### math

Let the total cost function C(x) be defined as follows. C(x) = 0.0008x3 - 0.04x2 + 99x + 4400 Find the average cost function C. C(x) = ?? Find the marginal average cost function C '. C '(x) = ??

### micro economics

Marginal cost is a constant $10 per tire.quantities are measured in thousands per month ans price refers to the wholesale price. marginal cost is a constant $10 per tire. american currently sells brand name tires at a wholesale price of $28.50 and private label tires for a ...

### Microeconomics

Monopolistic Competition A monopolistically competitive market could be considered inefficient because: A. Marginal revenue exceeds average revenue B. Price exceeds marginal cost C. Efficient scale is realized in the long run, but not in the short run D. Markup pricing does ...

### math

Find the average cost function C associated with the following total cost function C. C(x) = 0.000007x3 - 0.06x2 + 110x + 76000 C(x) = ?? (a) What is the marginal average cost function C' ? C'(x) = ?? (b) Compute the following values. (Round your answers to three decimal ...

### math

The daily cost C, in RM, of producing a product is C(x)=1000+72x-0.06x^2 (0 more & equal x less & equal 60) where x represents the number of product produced. a) Find the daily cost of producing 50 units b) Find the marginal cost function. c) Find C’(50) and interpret its ...

### math

A company produces x units of output at a total cost of 1/3 x^3 – 18x^2 + 160x. Output at which average cost is equal to marginal cost is:

### Business Analytic

The spreadsheet below gives some of Redstone’s production cost data. Enter this data in your own Excel spreadsheet. (Remember our discussion of Smith Farms in the Attend session!) Add columns 5, 6, 7, and 8 to show, respectively, average fixed cost (AFC), average variable ...

### Math check

Average cost = q^2¡V15q + 48 Calculate the output level (q), which minimizes a)Total Cost b)Marginal Cost I got an answer for a) is q=8 and b) is q=5 I need somebody to check it for me, thanks so much.

### Calculus

The total cost (in dollars) of producing x golf clubs per day is given by the formula C(x)=500+100x−0.1x2. (A) Find the marginal cost at a production level of x golf clubs. C′(x) = (B) Find the marginal cost of producing 35 golf clubs. Marginal cost for 35 clubs =

### math

Suppose the cost C(q) (in dollars) of producing a quantity q of a product equals C(q) = 500 + 2q +1/5q^2 The marginal cost M(q) equals the instantaneous rate of change of the total cost. Find the marginal cost when a quantity of 10 items are being produced.

### calc

Suppose the cost C(q) (in dollars) of producing a quantity q of a product equals C(q) = 500 + 2q +1/5q^2 The marginal cost M(q) equals the instantaneous rate of change of the total cost. Find the marginal cost when a quantity of 10 items are being produced.

### calc

Suppose the cost C(q) (in dollars) of producing a quantity q of a product equals C(q) = 500 + 2q +1/5q2. The marginal cost MC(q) equals the instantaneous rate of change of the total cost. Find the marginal cost when a quantity of 10 items are being produced.

### Calculus

I have two problems that I can't figure out for my test review... 1. Productivity: Because a new employee must learn an assigned task, production will increase with time. Suppose that for the average new employee, the rate of performance is given by dN/dt=1/2?(t+1) where N is ...

### econ 460

1. The demand for a new drug is given by P = 4 – 0.5Q. The marginal cost of manufacturing the drug is constant and equal to $1 per unit. (Prices and costs are in terms of dollars, and quantities are in millions). a. Illustrate on a diagram the following curves: demand, ...

### ECONOMICS

A monopolistically competitve firm produces 100 units of output per period, selling each unit for $75. Marginal revenue and marginal cost of the one-hundredth unit are each $50. Average total cost is $60. a) Does this situation correspond to short-run equilibrium? Why or why ...

### Multivariate Calculus

The marginal cost function is MC(q)=300-10q, where 'q' is the number of tons of coffee produced. Fixed costs are $1000. The marginal revenue function is MR(q)=500-20q. The value of the profit function P(q) when q=25 is closest to? And the Average Cost when q=20 is closest to? ...