This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: A monopolist has demand and cost curves given by: QD = 1000 - 2P TC = 5,000 + 50Q a. Find ... (Read 41 times)

Arii_bell

  • Hero Member
  • *****
  • Posts: 596
on: Jul 1, 2018
A monopolist has demand and cost curves given by:
 
  QD = 1000 - 2P
   TC = 5,000 + 50Q
 
  a. Find the monopolist's profit-maximizing quantity and price.
  b. Find the monopolist's profit.

Question 2

If government imposes an excise tax on a good and the tax burden is borne equally by buyers and sellers, then
 
  A) price elasticity of demand is unitary.
  B) price elasticity of supply is unitary.
  C) the absolute values of price elasticities of demand and supply are equal.
  D) None of the above


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

nanny

  • Sr. Member
  • ****
  • Posts: 313
Reply #1 on: Jul 1, 2018
Answer to Question 1

a. MR = 500 - Q
MC = 50
50 = 500 - Q
Q = 450
P = 275
b. Profit = 275  450 - 5,000 - 50  450 = 96,250

Answer to Question 2

C


Arii_bell

  • Member
  • Posts: 596
Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)

raili21

  • Member
  • Posts: 324
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Computer programs are available that crosscheck a new drug's possible trade name with all other trade names currently available. These programs detect dangerous similarities between names and alert the manufacturer of the drug.

Did you know?

Cutaneous mucormycosis is a rare fungal infection that has been fatal in at least 29% of cases, and in as many as 83% of cases, depending on the patient's health prior to infection. It has occurred often after natural disasters such as tornados, and early treatment is essential.

Did you know?

The U.S. Preventive Services Task Force recommends that all women age 65 years of age or older should be screened with bone densitometry.

Did you know?

Despite claims by manufacturers, the supplement known as Ginkgo biloba was shown in a study of more than 3,000 participants to be ineffective in reducing development of dementia and Alzheimer’s disease in older people.

Did you know?

Cyanide works by making the human body unable to use oxygen.

The Rotation Curves of Four Spiral Galaxies The Rotation Curves of Four Spiral Galaxies
How to find the intervals where a function is satisfied using inequalities How to find the intervals where a function is satisfied using inequalities
Species-area curves Species-area curves
Marginal Supply - Demand Curve Marginal Supply - Demand Curve
Find derivative by using definition of the derivative question 2 Find derivative by using definition of the derivative question 2
Group defenses: Cluster of sawfly caterpillars regurgitating fluid (yellow) that predators find unap Group defenses: Cluster of sawfly caterpillars regurgitating fluid (yellow) that predators find unap
Video: Brain Lobes Animation

For a complete list of videos, visit our video library