The monopolistic competitor faces a demand curve given by Q (p) = 50−5p. Its cost function is C(y) = 4y. What is its optimal level of output and price?

/in /by

The monopolistic competitor faces a demand curve given by Q (p) = 50−5p. Its cost function is C(y) = 4y. What is its optimal level of output and price?

You might also like
If Shelly's income increases by 10% and at the same time there is a 2% decrease in her quantity demanded of potatoes, the income elasticity is A. 0,5 B. -5 C. -0,2 D. 2
Uranus beta is 1.2 and market risk premium 7 percent risk free rate is 10 percent. Uranus has debt is 14 percent tax rate is 35% what is WACc
Suppose Mika has budget of $600 for only two goods, x and y. The price of a Good X is $10 and the price of good Y is $25. Mika’s utility function for Good x and Good y is: UU(xx, yy) = 2xxxx. Suppose the price of a Good X increases to $15. a. What is Mika’s initial basket when the price of a Good X is $10? b. How much utility does this basket generate for Mika? c. What is Mika’s final consumption basket when the price of Good X increases to $15? d. Compute the values for the decomposition basket, B. e. Determine the numerical values of the substitution and income effects and graph your results. f. Is Good X normal or inferior goods for Mika? How do you know?
Consider the total cost function TC= 120y-y^2+0.02y^2. a. What level of y yields minimum cost per unit of y? b. What is the relationship between MC and AVc at the above level of output?
The demand curve facing a monopoly is P= 100 +5Q. The firm cost is c(Q)=10+5Q. What is profit maximising output?
Cups of coffee and donuts are complements. Both have inelastic demand. A hurricane destroys half the coffee bean crop. Use appropriately labeled diagrams to answer the following questions. a. What happens to the price of coffee beans? b. What happens to the price of a cup of coffee? What happens to total expenditure on cups of coffee? c. What happens to the price of donuts? What happens to total expenditure on donuts?
The following table represents the cash inflows of a boutique for nine years. Year Cash inflow (R) 3 45 000 6 90 000 9 115 000 The applicable interest rate is 11,59% per year. The present value of the cash outflows is R95 000. 26 DSC1630/001
Kinkead Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be −$10 million, but its FCF at t = 2 will be $20 million. After Year 2, FCF is expected to grow at a constant rate of 4% forever. If the weighted average cost of capital is 14%, what is the firm's value of operations, in millions?