--%>
Assignment Help - homework help

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 : Determine present value by interest rate

    When the annual interest rate is 12 percent and a rental house can be expected to rent perpetually for price of $1,000 monthly, in that case the house has a present value of approximately: (1) $240,000. (2) $144,000. (3) $100,000. (4) $72,000. (5) $12

    		•
  • Q : Competitive market Select the right

    Select the right answer of the question. A competitive market will: A) achieve an equilibrium price. B) produce shortages. C) produce surpluses. D) create disorder.

    		•
  • Q : Law of Diminishing Merginal utility Law

    Law of Diminishing Merginal utility: This states that as consumer consumes more and more units of commodity, the utility derived from each and every successive unit goes on decreasing. According to this law TU increases at decreasing rate and the MU d

    		•
  • Q : Determinants of genuine Demand The

    The demand for authentic leather footballs would tend to rise if: (1) Prices for football pads and cleats reduced. (2) Cheap footballs recently molded from the synthetic fibers demonstrated enhanced durability and performance. (3) Latest records were set for injuries

    		•
  • Q : Needs firm by maximizing profits for

    Maximizing profit needs every firm to manufacture the output level where marginal is: (i) revenue is maximized. (ii) cost equals the lowest possible  average total cost. (iii) revenue equals marginal cost. (iv) revenue exceeds ma

    		•
  • Q : Profit Maximization-Labor Can someone

    Can someone help me in finding out the right answer from the given options. All the profit maximizing organizations employ labor up to the point where: (w) MR   MC is maximized. (x) VMP = MFC. (y) VMP = MRP. (z) MRP = MFC.

    		•
  • Q : Consumer Surplus-Difference in amounts

    Kiley pays $1.00 for the cold Pepsi on a hot afternoon, however would be willing to pay $5.00. The $4.00 difference in such amounts is her: (i) Consumer surplus. (ii) Income effect. (iii) Economic gain. (iv) Marginal utility. (v) Pleasure coefficient.

    Q : Instance of Adverse Selection Nutcake

    Nutcake Products hires new staffs devoid of revealing that the rising demand for nutcakes and partial staffing make it not possible for staffs to take their guaranteed 2-week vacations. Nut cake’s shortage of candor is most unambiguously an instance of: (1) Symm

    		•
  • Q : Goal of the War on Poverty Enhancing

    Enhancing the conditions of the poor was a main goal of the War on Poverty which was launched under President: (1) Franklin Delano Roosevelt. (2) Lyndon Johnson. (3) Richard Nixon. (4) Jimmy Carter. (5) Ronald Reagan.

    Q : Define Ex-ante aggregate demand Define

    Define Ex-ante aggregate demand: This is planned or the desired aggregate demand.

    		•