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 : Experiencing Absolute Poverty When the

When the minimum amounts of food, clothing and shelter essential for survival absorb all of a family’s income, in that case the family is experiencing: (w) relative poverty. (x) economic shock. (y) financial destitution. (z) absolute poverty.

Q : Variation in supply and demand curves

These supply and demand curves for housing do NOT involve that the: (w) demand for housing has increased. (x) supply has increased, because rental price has risen. (y) equilibrium price and quantity of housing have increased. (z) housing market will c

Q : Total revenue when output exceeds When

When output is expanded, then a firm's total revenues: (1) are maximized where marginal revenue is zero. (2) decline whenever average revenue falls. (3) rise more quickly the faster marginal returns diminish. (4) are maximized where profit is maximize

Q : Monopolist maximizes profit When a

When a monopolist maximizes the profit in the product market, it will: (i) Hire labor till the marginal revenue product equivalents the marginal resource cost. (ii) Hire the labor till the value of marginal product equivalents the marginal resource cost. (iii) Pay a w

Q : Define break-even price Break-even

Break-even price: This is the price at which firms form zero normal profit.

Q : Demand in Dynamics The raise in the

The raise in the supply of potatoes is probable to decrease the: (i) Supply of potato harvesters. (ii) Demand for pasta and rice. (iii) Price of Big Macs. (iv) Quantity of ketchup people put on hot-dogs. (e) Budgets of most house-holds.

Q : Experiencing the economies of Scale Let

Let assume that an auto manufacturer which can produce 10 cars at an average cost of $8000 per car. When the manufacturer enlarges output to 100 cars, then the average cost of production falls to $5000 per car. This firm is experiencing the: (1) Raised demand. (2) Eco

Discover Q & A

Leading Solution Library

Avail More Than 1447767 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1931355
Asked

3,689

Active Tutors

1447767

Questions
Answered

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

Submit Assignment