--%>
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 : Maximum possible total revenue by sales

    Maximum possible total revenue by sales of the especially popular St. Valentine’s Day software is about: (i) $140 million. (ii) $250 million. (iii) $350 million. (iv) $420 million. (v) $1 billion.

    Q : Unexpected growth of inventories Can

    Can someone help me in finding out the right answer from the given options. Whenever the quantity of a good supplied surpasses the quantity demanded: (i) Unexpected growth of inventories will cause prices to drop. (ii) The present market price is beneath equilibrium.

    		•
  • Q : Consumption of goods changes as income

    This below figure demonstrates how consumption of goods A, B, C and D changes as a family’s income changes. When income increases, the income elasticity of demand is positive although declining for: (w) good A. (x) good B 

    		•
  • Q : Giving wholesale price per dozen by

    When Rose Garden Wholesalers has a typical type cost structure of rose farms within this purely competitive industry, into the long run new competitors would most likely enter the market providing the wholesale price

    		•
  • Q : Problems on Featherbedding The

    The Contracts needing employment after some worker’s jobs have been made outdated by automation are illustrations of: (1) Labor-reducing protectionism. (2) Featherbedding. (3) Check-off provisions. (4) Yellow dog contracts. (5) Blacklisting.

    Q : Rates of Return below Investment When,

    When, relative to most another forms of business, farm incomes are tiny in comparison to farmers’ net wealth, in that case: (w) rates of return in agriculture are below those from other investments. (x) agriculture generates pos

    		•
  • Q : Foreign Exchange Market Whatt happens

    Whatt happens in the foreign exchange market when there is a U.S. export transaction

    		•
  • Q : Features of oligopoly Features of

    Features of oligopoly: Following are some principal features of oligopoly : A) A few firmsB) High degree of interdependence.C) Non-price competition.D) Entry barriers.E) Formation of cartels

    		•
  • Q : Problem on imperfect competition As MRP

    As MRP < VMP in imperfect competition if firms have market power as sellers: (1) MPPL = VMP. (2) The price of output surpasses MFC. (3) Monopolistic exploitation becomes essential to attain gain. (4) Imperfect competition can’t reach the equi

    		•
  • Q : Illustration of Shirking Can someone

    Can someone please help me in finding out the accurate answer from the following question. Jones, a computer programmer, plays computer games all day rather than doing his work. This is an illustration of: (i) Moral turpitude. (ii) Inefficiency salaries. (iii) Shirkin

    		•