Suppose a monopolist has TC = 100 + 10Q + 2Q2, and the demand curve it faces is p = 90 – 2Q. (5 marks) a) the optimum quantity and the optimum price level b) the profit/loss on these levels c) at what price should the monopolist shut down? d) Show the economic profit (loss) of the firm in a graphic representation

/in /by

Suppose a monopolist has TC = 100 + 10Q + 2Q2, and the demand curve it faces is p = 90
– 2Q. (5 marks)
a) the optimum quantity and the optimum price level
b) the profit/loss on these levels
c) at what price should the monopolist shut down?
d) Show the economic profit (loss) of the firm in a graphic representation

You might also like
Given the production function Q = L0.75 K0.25 1. If the fixed quantity of capital in the short run is 10000units, estimate SR product function 2. Find the value of L that maximize SR product function in 1above
As a Production Manager of a manufacturing firm that produces both an elastic good and an inelastic good, illustrate to a new board of the organisation the relationship between price elasticity of demand and total revenue, and how the elasticity concept can be used to maximise revenues of both commodities? Illustrate your answer using relevant diagrams of elastic and inelastic goods.
If a firm producing in long run using capital and labour inputs,how the least cost combination of the input will be determined? show it mathematically and graphically
The potential amount of shoes that you can sell per year is 6 000 pairs, regardless of whether you change the prices of the shoes or not. If you adjust your price downwards or upwards by 1%, the consumers tend to buy 1.5% either more or less. Your supply curve indicates that you should always keep 500 units in stock and that a 1% change in the price of a pair of shoes tends to increase or reduce the sales of a pair of shoes by 0.5%. Construct your shop's demand and supply functions for running shoes. Calculate the price of a pair of shoes as well as the expected annual sales. Determine the elasticity of demand of your shoes.
illustrate the relationship between price elasticity of demand and total revenue, and how the elasticity concept can be used to maximise revenues of both commodities? Illustrate your answer using relevant diagrams of elastic and inelastic goods.
What are the steps (methodology) that we need to follow in econometric analysis?
Given the production function Q = L0.75 K0.25 1. If the fixed quantity of capital in the short run is 10000units, estimate SR product function 2. Find the value of L that maximize SR product function
Suppose that, as part of an international trade agreement, the U.S. government reduces the tariff on imported coffee. Will this affect the supply or the demand for coffee? Why? Which determinant of demand or supply is being affected? Show graphically with before- and after-curves on the same axes. How will this change the equilibrium price and quantity of coffee? Explain your reasoning.