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A Monopoly firm faces the following demand curve: P=200-0.5Q Where Q is the output and P is the price in dollars. The firm's total cost function is given by TC=20,000 + 40Q

1. What is the level of production?

2. What is the price monopolist should charge?

3. What is the level of profit?

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Insha Fatima
Insha FatimaLv10
28 Sep 2019

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Related questions

A firm with market power faces the demand function q=4000-40p. The firm's total cost function is TC(q)=10q+.001q^2+1000.

a. If the firm behaves as a single price monopoly, identify the firm's optional price and output level.

b. Demonstrate that the single price monopolist's profit maximizing choice of price and output also maximizes producer surpulus.

c. Identify the output level that would maximize total surplus.

d. Identify the output level that a perfect price discriminating monopolist would produce.

A monopolist faces a market demand curve given by Demand: Q=70-P. The monopolist faces the following cost structure: C=0.25Q^2-5Q+200. What output level will the monopolist choose in order to maximize profits? What is the price at this output level? What is a deadweight loss in this case? 

A monopolistic firm faces the following demand curve.
Q = 8000 -10 P
This monopoly's cost function has been estimated as follows:

TC = 480,000 + 40 Q

a. What price should this monopoly charge to maximize its profit?
b. What would be its equilibrium profit?
c. What price should it charge if it were to maximize its revenue?
d. What would be its profit if it maximized its revenue?
e. If this monopoly were to behave like a competitive firm, what price should it charge and what quantity should it produce?
f. Would this monopolist still make an economic profit if it were to behave like a competitive firm?

g. What is the break-even quantity of this monopoly?

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