--%>

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 py = 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.

   Related Questions in Microeconomics

  • Q : Demand of consumers-supply of seller

    Consumers’ demand prices and sellers’ supply prices may be different in equilibrium due to: (w) arbitrage. (x) expectations about availability. (y) the invisible hand. (z) government subsidies or tax wedges.

  • Q : Economic Efficiency in Financial

    Financial institutions make possible economic efficiency primarily since: (w) laissez faire markets handle asymmetric information poorly. (x) corporate ownership must be stabilized. (y) they channel funds from agents along with surplu

  • Q : Problem on decline in demand function

    In the month of January, Disney World in Florida cut its ticket prices into half and starts letting all kids beneath age five without charge. The economic forecaster might reasonably expect: (1) A decline in demand for the tickets to Disney Land in California. (2) A r

  • Q : Change in supply of good and in price

    When a change in the supply of a good causes a percentage change within price which exceeds in absolute value the resulting percentage change within quantity demanded, then demand is relatively: (1) price elastic. (2) inferior. (3) no

  • Q : Monopolistic competition in long run

    When this firm initially had important market power along with potential long-run economic profit, a likely cause of the firm finally being in a stable equilibrium of an $18 price and output of 5,000 units every day would be:  (1

  • Q : Elasticity of demand as price-total

    Increasing the price of a product definitely raises total revenue when the elasticity of demand is as: (w) infinity. (x) unitary. (y) relatively elastic. (z) relatively inelastic.

  • Q : Demand and Supply in short run Both

    Both demand and supply of hamburgers would plummet in short run, as would be quantity sold, however we can’t be certain how the price would adjust when: (i) 75 % of the population became serious vegetarians. (ii) People abruptly decreased their intake of milk pr

  • Q : Determine infinity price elasticity

    When the demand for cheesy fried grits of Pixie is relatively price elastic, then its price elasticity is: (i) zero. (ii) greater than zero but less than one. (iii) one (unitary.) (iv) greater than one but less than infinity. (v) infi

  • Q : Pretax -posttax and transfer

    Refer to the following diagram. If line b represents the pretax and transfer distribution of income in the United States, we would expect the post-tax and transfer distribution to be: A) line a. B) line b, because taxes and transfers have no effect on income distribut

  • Q : Demand curve for Complementary Goods

    The ban on assault weapons enacted in the year 1994 lapsed in the year 2004. Prices for assault weapons fell in year 2004 since the only way to get such guns throughout the ban was via the black market. This modify in the law in year 2004 is most probable to shift the