Problem on monoplists, Suppose that the total cost curve for a monopolist is provided by

Problem on monoplists

Suppose that the total cost curve for a monopolist is provided by TC = 3y² + 800 and its marginal cost curve is given as MC = 6y. Also assume it faces a market demand curve of p_y = 280 - 4y and marginal revenue curve of MR = 280 – 8y.
a. Find out the monopolist’s profit maximizing price and quantity and it’s economic profits.
b. Find out the price elasticity of demand at the profit maximizing price.

View Complete Question

Related Questions in Microeconomics

Q : Competitive equilibrium in competitive

I have a problem in economics on Competitive equilibrium in competitive labor markets. Please help me in the following question. The Competitive equilibrium in competitive labor markets need: (1) P = MR = AVC. (2) VMP - P is maximized. (3) MPP = P. (4

Q : Minimum Wage Laws and Monopsony Power

The Minimum wage laws potentially raise both employment and wages if firms: (i) Have monopsony power in the labor market and don’t wage discriminate. (ii) Practice outsourcing across the international borders as labor costs abroad are lower. (iii) Are pure compe

Q : Maximizing utility from consumption of

Given that a MU of French fries of 35 utils and a MU for the serving of potato chips at 25 utils, when their respective prices are $1.50 and $.80, a person who wishes to maximize the utility from the consumption of both of such goods would consume: (1) The similar amo

Q : Price elasticity on straight line curve

Find out the price elasticity of supply at any point on a straight line curve when A) supply curve intersects ox axis in its negative range B) supply curve intersects ox axis in its positive range. C) Supply curve passes via the origin?

Q : Problem on Laws and Regulations Can

Can someone please help me in finding out the accurate answer from the following question. Raised demand for beer would be most probable to follow a fall in the: (1) Legal drinking age. (2) Price of ale. (3) Price of hard liquor. (4) Price of wine.

Q : Elasticity of demand curve In which

In which form of market, the demand curve is more elastic and why? Answer: Demand curve is more elastic under monopolistic since of the availability of close substitute.

Q : Ratio of Wealth and Poverty In 1980

In 1980 year, the chief executive officers that stand for CEOs of main corporations had income which averaged roughly 40 times as much as the workers they working. In 2005, such ratio is less than: (1) twenty to one. (2) forty to one. (3) one hundred

Q : Illustration of demand for Spurs tickets

Can someone help me in finding out the precise answer from the given options. In the year 2005, the San Antonio Spurs basketball team increased all ticket prices and attendance surpassed the year 2004 attendance, pointing out a raise in the: (i) Upward slope of ticket

Q : Least consistency for law of demand The

The demand curve for socket sets from the list below which is least consistent along with the law of demand is: (w) demand curve D1D1. (x) demand curve D2D2. (y) demand curve D3D3

Q : Market structure in barriers of entry A

A market structure in that barriers of entry tend to be important, with sales being dominated by some large firms is: (w) a monopoly market. (x) a monopolistically competitive market. (y) an oligopoly. (z) perfectly competitive market.

Discover Q & A

Leading Solution Library

Avail More Than 1427945 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1958109
Asked

3,689

Active Tutors

1427945

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment