# 1) A monopolist and competitive firm face the following demand: Q = 106 - 0.12P This firm's...

## Question:

1) A monopolist and competitive firm face the following demand:

Q = 106 - 0.12P

This firm's cost function is:

{eq}C = 2Q^{2} + 80Q + 1,375 {/eq}

Find the quantity, Q, that maximizes profit. Round your answer to one decimal.

2) Your firm's cost function is:

{eq}C = 4.3Q^{3} - 11Q^{2} + 422Q + 2,375 {/eq}

Your firm faces the following demand:

P = 3,737 - 49Q

Your firm is a monopoly. Find the quantity, Q, that maximizes profit. Round your answer to one decimal.

3) A competitive firm's cost function is:

{eq}C = 0.28Q^{3} + -3.3Q^{2} + 52Q + 151 {/eq}. Find the shut-down price for this firm. Round your answer to one decimal.

## Monopoly, Perfectly Competitive Firm and Monopolistically Competitive Firm:

A monopoly is a firm that has the exclusive control of a product and its price. The firm is the sole producer of the product, meaning that it faces no competition from any other firm. A perfectly competitive firm is a firm that operates in a perfectly competitive market. In this market structure, there are many firms in the market which produce goods that are identical and sells at the same market price. A monopolistically competitive firm is a firm which combines the characteristics of a monopoly and those of a perfectly competitive firm.

## Answer and Explanation: 1

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View this answer**1)** A monopolist and competitive firm face the following demand: {eq}Q = 106 - 0.12P
{/eq}. This firm's cost function is: {eq}C = 2Q^{2} + 80Q +...

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Chapter 7 / Lesson 3What is monopolistic competition? Learn about Monopolistic Competition through its features and some examples. Also see the aspects of monopolistic structure.

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