# The inverse demand curve a monopoly faces is P = 100 - Q. The firm's cost curve is C(Q) = 10 +...

## Question:

The inverse demand curve a monopoly faces is P = 100 - Q. The firm's cost curve is C(Q) = 10 + 5Q.

A) What is the profit-maximizing solution?

B) What is the profit-maximizing quantity?

C) What is the profit-maximizing price?

D) What is the firm's economic profit?

## Monopoly:

In economics, a monopoly arises when there is only one firm selling a particular product or products with no substitutes. Monopolies can be created by the government through patent rights or can exist naturally where the fixed cost or startup costs are very high.

## Answer and Explanation: 1

Become a Study.com member to unlock this answer! Create your account

View this answer

**A) What is the profit-maximizing solution? **

The profit-maximizing solution will be at the point where MR=MC.

**B) What is the profit-maximizing...**

See full answer below.

#### Ask a question

Our experts can answer your tough homework and study questions.

Ask a question Ask a question#### Search Answers

#### Learn more about this topic:

from

Chapter 24 / Lesson 6Learn the profit maximization definition, its importance, and explore the profit maximization theory. See how to calculate profit maximization with examples.

#### Related to this Question

- The inverse demand curve a monopoly faces is p = 110 - Q. The firm's cost curve is C(Q) = 10 + 5Q. a. What is the profit-maximizing solution? The profit-maximizing quantity is. The profit-maximizin
- The inverse demand curve a monopoly faces is p = 130 - Q. The firm's cost curve is C(Q) = 20 + 5Q. a. What is the profit-maximizing solution? b. What is the firm's economic profit?
- The inverse demand curve a monopoly faces is p = 110 - 2Q. The firm's cost curve is C(Q) = 20 + 6Q. What is the profit-maximizing solution? The profit maximizing quantity is The profit-maximizing pric
- The inverse demand function a monopoly faces is p = 90 - Q. The firm's cost curve is C(Q) = 5 + 2Q. a) What are the profit-maximizing price and quantity? What is the firm's profit? b) How do the answers change if C(Q) = 1 + 4Q?
- The inverse demand curve a monopoly faces is p = 130 - 2Q. The firm's cost curve is C(Q) = 50 + 6Q. What is the profit-maximizing solution?
- The inverse demand curve a monopoly faces is p=10Q^{-0.5}. The firm's cost curve is C(Q)= 5Q. What is the profit-maximizing solution?
- A monopoly's inverse demand curve is given by P = 200 - 5Q. The marginal cost of producing the product is $50. What is the profit maximizing price and output for the product? a. P = $150, Q = 10 b. P = $125, Q = 15 c. P = $50, Q =10 d. P = $50, Q = 30
- If the inverse demand curve a monopoly faces is p = 55 - 4Q, and it has a constant marginal cost of 17, then what is the profit maximizing quantity?
- The inverse demand curve a monopoly faces is p= 10Q-.5 The firms cost curve is C(Q)=5Q what is the profit maximizing solution?
- A monopolist has a cost function C(Q) = 100 + 10Q + 2Q^2 and the inverse demand curve it faces is P = 90 - 2Q. This monopoly will maximize profit when it produces _____ units of output, by charging price _____ per unit. The maximum profit earned by this m
- The inverse demand curve that a monopoly faces is p = 78 - 4Q. The firm's cost curve is C(Q) = 228 + 2Q(squared) + 6Q, so that MC = 4Q + 6. a. Derive the marginal revenue for the monopolist. b. What i
- A monopoly firm faces an (inverse) demand curve of P = 196 - 28Q^0.5 + Q and has a constant marginal (and average) cost curve of 49. If the firm can perfectly price discriminate, what are its profits;
- The inverse demand curve a monopoly faces is p= 130-Q The firms cost curve is C(q)=40+5Q What is the profit Maximizing solution ? The profit-maximizing quantity is ?(Round your answer to two deci
- If the inverse demand curve a monopoly faces is p = 100 - 2Q, and MC is constant at 16, then profit maximization is achieved when the monopoly sets price equal to: a. $58 b. $21 c. $16 d. $25
- If a monopoly's inverse demand curve is P = 13 - Q and its total cost function is TC = 25 + Q + 0.5Q^2, A. what Q* maximizes the monopoly's profit (or minimizes its loss)? At Q^*, what are the price and the profit? Should the monopolist operate or shut do
- A natural monopoly has a constant marginal cost of $10, and faces the following inverse demand function: P = 27 - 1.5 Q Assume the firm is unregulated and profit maximizing. a. What is the profit maximizing price and quantity that it would choose? b. What
- A monopoly faces a market demand curve given by: Q = 60 - P, and a marginal revenue curve given by: MR = 60 - 2Q. If MC = AC = 10; A) Calculate profit-maximizing price and quantity for the monopoly. B
- You are the manager of a monopoly that faces an inverse demand curve described by P = 63 - 5Q. Your total costs are C = 10 + 3Q. and your marginal cost are MC = 3. The profit-maximizing output for your firm is: a. 3. b. 4. c. 5. d. 6.
- The inverse demand curve a monopoly faces is p = 120 - Q. The firm's cost curve is C(Q) = 50 + 5Q.
- A monopolist faces demand P = 10 - Q. It has costs C(Q) = 2Q. It can perfectly price discriminate. a. What is its marginal revenue curve? Graph the demand curve. b. Derive the profit maximizing outpu
- Suppose a firm faces the inverse demand curve P = 600Q^-0.5. The firm has the total cost curve TC = 1000+0.5Q^1.5. Find the firm's profit maximizing output, price and profit.
- You are the manager of a monopoly that faces an inverse demand curve described by P = 240 - 12Q. Your costs are C = 32 + 48Q. The profit-maximizing price is a. $48. b .$156. c. $96. d. $144.
- The inverse demand curve a monopoly faces is p = 15Q^{-1/2}. The firm's cost curve is C(Q) = 5Q. What is the profit-maximizing solution? (Round all numerals to two decimal places.)
- If the inverse demand curve a monopoly faces is p=100-2Q, and MC is constant at 16, then profit maximization: a. is achieved by setting price equal to 21 b. is achieved when 21 units (Q) are produced c. is achieved only by shutting down in the short run d
- The inverse demand function a monopoly faces is: p = 100 - Q, The firm's cost curve is: C (Q) = 10 + 5Q. What is the profit-maximizing solution?
- If a profit maximizing monopolist faces a linear demand curve and has zero marginal cost, it will produce at : A elasticity of demand equals 1. B the lowest point of marginal profit curve. C All of
- If the inverse demand curve a monopoly faces is p=100 -2Q, and MC is constant and always equal = 16, then at the profit maximizing output level, the monopoly price in this market would be equal to: The answer is 441 but I do not understand how to solve If
- A monopolist faces inverse market demand of P = 140 -Q/2, and has a total cost given by TC(Q)= 2Q^2 + 10Q + 200. a. Find this monopolist's profit maximizing output level, b. Find this monopolist's profit maximizing price, c. How much profit is this mon
- A monopoly has an inverse demand function given by p = 120 - Q and a constant marginal cost of $10. (a) Graph the demand, marginal revenue, and marginal cost curves. (b) What is the profit-maximizing quantity and price for this monopolist? (Assume uniform
- A monopolist faces a market demand curve given by Q = 53 - P. Its cost function is given by C = 5Q + 50, i.e. its MC = $5. a. Calculate the profit-maximizing price and quantity for this monopolist. Also, calculate its optimal profit. b. Suppose a second
- A monopolist faces a demand curve P = 50 - 5Q where P is the product price and Q is the output. The monopolists cost function is C(Q) = 10Q. What are the monopolist's profit maximizing price, output, and profit? What are the consumer surplus and dead-weig
- Does a profit-maximizing monopolist always set price equal to marginal cost? Does a monopolistically competitive firm face a downward-sloping demand curve? When a monopolistically competitive firm is
- A monopolist faces the following demand curve and the total cost curve are given as follows: __P = 100 - 0.5Q TC = 5Q__ a) What is the profit-maximizing level of output? b) What is the profit-maximizing price? c) How much profit does the monopolist earn?
- If a monopoly faces an inverse demand curve of P = 90 - Q, has a constant marginal cost and average cost of 30, and can perfectly price discriminate, A. what is its profit? What are the consumer surplus, welfare, and DWL? B. How would these results change
- Suppose that a monopoly faces the inverse demand function: P = 70 - 2Q and its marginal cost function is MC = 40 - Q a. What should be the monopoly's profit-maximizing output? b. What is the monopoly'
- A monopolist faces a demand curve given by P = 10 - Q and has constant marginal and average cost of 2. What is the economic profit made by this profit-maximizing monopolist? A) 0 B) 12 C) 14 D) 16
- A monopolist faces a demand curve given by P = 10 - Q and has a constant marginal (and average) cost of $2. What is the economic profit made by this profit-maximizing monopolist? a. $0 b. $12 c. $14 d. $16 e. none of the above
- The demand curve that a monopoly faces is Q_D = 787 - 8P. Rearranging this yields the inverse demand curve P = \frac {787}{8} - \frac{Q_D}{8}. The marginal revenue curve is MR = P = \frac{787}{8} - \frac{2Q_D}{8}. There are no fixed costs for the mono
- A monopolist faces a demand curve given by P=10-Q and has constant marginal (and average cost) of 2. What is the economic profit made by this profit-maximizing monopolist? a. 0 b. 12 c. 14 d. 16 e. None of the above
- A monopolist faces market demand given by Q_D = 65 - P and cost of production given by C = 0.5Q^2 + 5Q + 300. A. Calculate the monopolist's profit-maximizing output and price. B. Graph the monopolist's demand, marginal revenue, and marginal cost curves. S
- Determine the profit-maximizing prices when a firm faces two markets where the inverse demand curves are Market A: P_A = 120 - 2Q_A, and Market B: P_B = 60 - 1Q_B. Marginal cost is m = 40 in both markets.
- Suppose that a monopoly faces inverse market demand function as P = 70 - 2 Q and its marginal cost function is MC = 40 - Q. Answer the following two questions. a. What should be the monopoly's profit-maximizing output? b. What is the monopoly's profit?
- A monopoly has an inverse demand curve given by P = 16 - Q and a constant marginal cost of $2. Calculate deadweight loss if the monopoly charges the profit-maximizing price. (Give your response rounded to two decimal places.)
- Suppose that a monopolist faces the demand curve P) 2 Q, and has total cost curve TC(Q) = Q^2. (a) If the firm is unable to price discriminate, find the firm's profit maximizing price and quantity.
- The demand for a monopoly is P = 60 - 0.3QD, where P is price and QD is quantity demanded. a) Plot the demand and marginal revenue curves. b) What is the equation for the firm's marginal revenue? c) At what output level would the monopoly maximize total r
- A monopolist faces a demand curve given by P = 10 - Q and has constant marginal (and average cost) of 2. What is the output and the price that maximizes profit for this monopolist? (a) Q = 0, P = 10. (b) Q = 2, P = 8. (c) Q = 4, P = 6. (d) Q = 8, P = 2. (
- A monopolist faces a demand curve given by P = 10 - Q and has constant marginal (and average cost) of 2. What is the output and the price that maximizes profit for the monopolist? A) Q = 0, P = 10 B) Q = 2, P = 8 C) Q = 4, P = 6 D) Q = 8, P = 2 E) None of
- If the inverse demand curve a monopoly faces p = 900 - 5Q and profit maximization is achieved at Q*= 86, then its constant MC is?
- A monopolist faces the demand curve P = 100 - 2Q, where P is the price and Q is the quantity demanded. If the monopolist has a total cost of C = 50 + 20Q, determine its profit-maximizing price and output.
- A monopolist faces a demand curve given by P=10-Q and has constant marginal (and average cost) of 2. What is the output and the price that maximizes profit for this monopolist? a. Q = 0, P = 10 b. Q = 2, P = 8 c. Q = 4, P = 6 d. Q = 8, P = 2 e. None of th
- A monopoly faces a demand curve of Q = 500 - 2P and has costs of TC = 100 + 10Q + Q^2. (Thus, you can solve MC = 10 + 2Q). Graphically depict demand and MC. a) What is the profit-maximizing level of output? b) What is the profit-maximizing price? c) What
- If the inverse demand cure is P(Q)=10-Q and the marginal cost is constant at 4, what is the profit maximizing monopoly price and output? What is the price elasticity at the monopoly price and output?
- A monopolist faces a market demand curve given by P(y) = 100 - y. Its cost function is c(y) = y^2 + 20. a. Find its profit-maximizing output level y* and the market price p(y*). b. Calculate its total revenue, total cost, and profit at y*. c. Calculate th
- Suppose a monopolist faces the demand curve P = 100 - 3Q. The marginal cost of production is constant and equal to $10, and there are no fixed costs. a. What is the monopolist's profit-maximizing level of output? b. What price will the profit-maximizing m
- Suppose a monopolist faces the demand curve P = 250 - 2Q. The marginal cost of production is constant and equal to $10, and there are no fixed costs. A. What is the monopolist's profit-maximizing level of output? B. What price will the profit-maximizing m
- Firm B is a monopolist that faces market demand of Q = 200 - 2P. Firm B's total cost is given by TC(Q) = 2Q^2 + 20Q + 200. What. Firm B's profit maximizing output level (Q') (Hint: inverse demand is
- Suppose that a monopolist faces a demand curve given by P = 100 - 2Q and cost function given by C = 500 + 10Q + 0.5Q^2. 9) What is the monopoly's profit-maximizing output level? A) 15 B) 18 C) 20 D) 3
- For a monopoly, the industry demand curve is the firm's A. profit function. B. marginal revenue curve. C. supply curve. D. demand curve.
- You are the manager of a monopoly that faces an inverse demand described by P = 200 - 2Q. Your costs are TC = 25 + 20Q and marginal cost is MC = 20. The profit-maximizing output for your firm is: a) 35. b) 20. c) 5. d) 45. e) 90.
- You are the manager of a monopoly that faces an inverse demand described by P = 130 - 2Q. Your costs are TC = 25 + 20Q and marginal cost is MC = 30. The profit-maximizing output for your firm is?
- Suppose a firm's inverse demand curve is given by P=120-.5Q, and its cost equation is C=420+60Q+Q^2. a. Find the firm's optimal quantity, price, and profit (1) by using the profit and marginal profit
- A monopoly's demand curve, average cost, and marginal cost are shown in the graph above. Based on that graph fill in the four blanks below: a. The monopoly's profit maximizing quantity is ___. b. The monopoly's profit maximizing price is ___.
- A monopolist faces the inverse demand curve P = 60 - Q and its marginal costs are 2Q. What is the monopolist's Lerner index at its profit-maximizing quantity? a. 1 b. 3/7 c. 1/2 d. 1/3
- Consider a market with inverse demand P(Q)=a-bQ. Assume there is a monopoly firm with cost function C(q)=cq^2. a) Find the optimal monopoly output and price. b) Compute the optimal profit for the firm
- A monopolist faces a demand curve: P = 100 - Q for its product. The monopolist has fixed costs of 1000 and a constant marginal cost of 4 on all units. Find the profit maximizing price, quantity, and p
- If a monopoly is maximizing profits, then A. price will always equal marginal cost. B. price will always be greater than marginal cost. C. price will always equal marginal revenue. D. price will always be greater than the elasticity of demand.
- A monopoly has a demand curve for its product given by Q = 40 - 2p and MR = 20 - 1/2q. It has a fixed cost of $20 and a constant marginal cost of $2. Find the profit maximizing output.
- When marginal revenue intersects marginal cost on a graph: A. a monopolist must go up to the demand curve to find the price. B. profits are maximized for a monopoly but not for a competitive firm. C. a monopolist prices the good at the point. D. a monopol
- One difference between a monopoly and a competitive firm is that: a. a monopoly maximizes profit by setting marginal revenue equal to marginal cost. b. a monopoly is a price taker. c. a monopoly faces a downward-sloping demand curve. d. None of the above.
- A monopolist faces a demand curve given by P=10-Q and has constant marginal (and average cost) of 2. What is the economic profit made by this profit-maximizing monopolist if they engage in perfect price discrimination? a. 32 b. 64 c. 100 d. 121 e. None of
- A monopolist faces inverse demand P = 300 - 2Q. It has total cost TC = 60Q + 2Q2 and marginal cost MC = 60 + 4Q. What is the maximum profit the monopolist can earn in this market?
- Suppose a firm's demand curve is P = 50 - Q and its total cost curve is TC = 10 + 10Q so that its MC = 10. A. Find its optimal (profit-maximizing) quantity of output. B. Find its optimal (profit-maximizing) price. C. Find its maximized profits.
- A monopolist faces a demand curve given by P = 10 - Q and has constant marginal (and average) cost of 2. What is the economic profit made by this profit-maximizing monopolist if they engage in perfect price discrimination? a. 432 b. 64 c. 100 d. 121 e. No
- A monopolist faces a demand curve given by P = 10 - Q and has constant marginal and average cost of 2. What is the economic profit made by this profit-maximizing monopolist if they engage in perfect price discrimination? A) 32 B) 64 C) 100 D) 121 E) None
- You are the manager of a monopoly that faces a demand curve described by P = 230 -20Q. Your costs are C = 5 +30Q. The profit-maximizing output for your firm is? A. 4 B. 5 C. 6 D. 7
- A monopoly has an inverse demand curve given by p = 24 - Q and a constant marginal cost of $6. Calculate deadweight loss if the monopoly charges the profit-maximizing price.
- Market conditions change for a monopolist with an original marginal cost of MC = 5 + 10Q. The inverse demand curve rotates from P = 40 - 5Q to P = 47 - 2Q. What happens to the profit-maximizing pric
- 1. A monopolist faces an upward-sloping marginal cost curve. Its profit-maximizing quantity will be a. at the minimum point of the marginal cost curve. b. less than the (total) revenue-maximizing qua
- A monopoly that causes a demand curved is QD = 546-3P. Rearranging this yields the inverse demand curve to P = 546/3 - QD/3. The marginal revenue curve is MR = P = 546/3 - 2QD/3. No fixed costs for the monopoly and the MC is constant. AC = MC = 8. What is
- A monopolist has an (inverse) demand curve for its product of P = 30 - 6Q (where Q is in millions of units). Its total cost curve is: TC = 14 + 3Q + 30^2. Find the profit-maximizing level of output, the profit-maximizing price, and the monopolist's prof
- MICROECONOMICS A monopolist faces a demand curve P = -20Q + 10 and MR = -4Q + 10. Total Cost = 2d (no fixed cost) and MC = 2. a) What is the monopolist's profit-maximizing production quantity (Q*)?
- Suppose a monopolist has costs to produce output of TC=1/6 Q^2+10 and faces the demand curve Q=3000-3P. Find equilibrium quantity, equilibrium price, and monopoly profit.
- A monopoly faces the inverse demand p = 200 - Q. The marginal cost of production is $3. Calculate the monopoly's profit maximizing price & output. Now suppose the government imposes a tax of $2 per un
- Assume a competitive firm faces a market price of $125, a cost curve of C = 0.25q^2 + 25q +1600 and a marginal cost curve of MC = 0.05q + 25. The firm's profit maximizing output level is 200 units, the profit per unit is $42 and total profit is $8400. How
- A monopoly will set price: (a) at the highest price along its demand curve. (b) equal to the value at which marginal cost intersects the demand curve. (c) so that it can sell the quantity at which marginal revenue is equal to marginal cost. (d) so that it
- A monopoly faces demand given by Q = 200 -P. The marginal cost MC = $10 is constant. The marginal revenue MR = 200 -2Q. a.Graphically show the monopoly's equilibrium, b.What is the equilibrium price and quantity? c.What are the profits earned by the
- A monopolist faces the following demand curve P = 222 - 2Q. The monopolist's cost is given by C = 2Q. Calculate the profit-maximizing quantity and the corresponding price. What is the resulting profit/loss? Calculate the monopolist's markup.
- A monopolist faces an inverse demand P = 300 - 2Q and has total cost TC = 60Q + 2Q2 and marginal cost MC = 60 + 4Q. What is the maximum profit the monopolist can earn in this market? A) 60 B) 240
- If the demand curve a monopoly faces is Q = 60 - 4p, and MC is constant at 10, then profit maximization is achieved when the monopoly sets price equal to exist10 exist12.5. exist15. None of the above.
- A monopolist faces the demand curve P = 11 - Q. The firm's cost function is C = 6Q. a. Draw the demand and marginal revenue curves, and the average and marginal cost curves. What are the monopolist's
- A monopoly is maximizing its profit. The marginal cost is $15 and the selling price is $20. What is the price elasticity of demand?
- A monopoly is maximizing its profit. The marginal cost is $20 and the selling price is $30. What is the price elasticity of demand?
- A monopolist faces a market demand curve given by P(y) = 100 y. Its cost function is c(y) = y ^2 + 20. a) Find its profit-maximizing output level y and the market price p(y^* ), b) Calculate its total revenue, total cost, and profit at y^*, c) Calculate
- If a firm with pricing power in the market faces a demand curve of P = 1800 - 2Q and marginal costs of MC = 200, how much is the equilibrium (profit-maximizing) quantity?
- If a firm with pricing power in the market faces a demand curve of P = 1800 - 2Q and marginal costs of MC = 200, how much is the equilibrium (profit maximizing) price (P)?
- If a monopoly faces an inverse demand curve of p=450-Q, has a constant marginal and average cost of $30, and can perfectly price discriminate, what is its profit? What are the consumer surplus, we
- 2. A monopolist has inverse demand P = 12 ? Q and cost of production C(Q) = Q2. Find its profit maximizing output, resulting pric2. A monopolist has inverse demand P = 12 - Q and cost of production C(
- If a firm in a monopolistic market faces the above demand and cost curves, what will the monopolist's profit be at its profit-maximizing price and quantity?
- A monopoly has the following demand, marginal revenue, total cost, and marginal cost curves: Demand P=1000-10Q MR= 1000-20Q TC= 100Q+5Q^2 MC=100+10Q a. Find the price and quantity that maximizes the monopoly's profits, b. How many profits does the monopo
- 1. A Profit-maximizing monopolist faces a downward-sloping demand curve that has a constant elasticity of -3. The firm finds it optimal to charge a price of $12 for its output. What is its marginal co