skip to Main Content
The smarter way
to do assignments.

Please note that this is just a preview of a school assignment posted on our website by one of our clients. If you need assistance with this question too, please click on the Order button at the bottom of the page to get started.

A monopolist faces a market demand curve given byQ = 70 – p.a. If the monopolist can produce at constant average and marginal costs of AC = MC = 6, what output level will the monopolist choose in order to maximize profits? What is the price at this output level? What are the monopolists profits?b. Assume instead that the monopolist has a cost structure where total costs are described by C(Q) = 0:25Q2- 5Q + 300. With the monopolist facing the same market demand and marginal revenue, what price-quantity combination will be chosen now to maximize profits? What will profits be?c. Assume now that a third cost structure explains the monopolists position, with total costs given byC(Q) = 0.0133Q3- 5Q + 250. Again, calculate the monopolists price-quantity combination that maximizes profits. What will profit be? Hint: Set MC = MR as usual and use the quadratic formula to solve the second-order equation for Q.d. Graph the market demand curve, the MR curve, and the three marginal cost curves from parts (a), (b), and (c). Notice that the monopolists profit-making ability is constrained by (1) the market demand curve (along with its associated MR curve) and (2) the cost structure underlying production.

GET HELP WITH THIS ASSIGNMENT TODAY

Clicking on this button will take you to our custom assignment page. Here you can fill out all the additional details for this particular paper (grading rubric, academic style, number of sources etc), after which your paper will get assigned to a course-specific writer. If you have any issues/concerns, please don’t hesitate to contact our live support team or email us right away.

How It Works        |        About Us       |       Contact Us

© 2018 | Intelli Essays Homework Service®

Back To Top