You are a monopolist and your inverse demand curve and cost function are the following:...
Question:
You are a monopolist and your inverse demand curve and cost function are the following: P=90-{eq}\frac{3Q}{2} {/eq}. TC(Q)=400Q+{eq}\frac{Q^3}{2} {/eq}. What is the MC (Marginal Cost)?
Cost Analysis:
Cost analysis refers to the analysis of resources that are used in the production of goods and services. Cost analysis is essential in that they assist the firm in formulating a sound pricing strategy. Cost can be broken down into the following classifications:
- Fixed cost.
- Variable cost.
- Mixed cost
Answer and Explanation: 1
The marginal cost refers to the additional cost of producing an extra unit of output. Marginal cost is the derivative of the total cost function.
- {eq}\text{Marginal cost}=\dfrac{\delta \text{TC} }{\delta \text{Quantity}} {/eq}
Given the total cost is:
- TC(Q)=400Q+{eq}\frac{Q^3}{2} {/eq}.
Therefore marginal cost is:
- {eq}\text{Marginal cost}=400+\dfrac{3}{2}\text{Q}^{2} {/eq}
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
Calculating & Categorizing Actual Project Cost
from
Chapter 9 / Lesson 3
2.6K
Actual project cost is defined by the amount of money exchanged, not just estimated. Explore costs of projects through the types of cost—fixed, variable, direct, and sunk— and the categories of cost—actual, standard, and total—including cost variance.
Related to this Question
- You are a monopolist and your inverse demand curve and cost function are the following: P=90-3Q/2. TC(Q)=400Q+Q^3/2. What is the MR (Marginal Revenue)? Explain.
- Suppose the demand curve for a monopolist is Q_D = 47,000 - 50P and the marginal revenue function is MR = 940 - 0.04Q. The monopolist's marginal cost is MC = 40 + 0.02Q and its total cost is TC = 250,000 + 40Q + 0.01Q^2. A. Find the monopolist's profit-ma
- Suppose the demand curve for a monopolist is Q_D = 47,000 - 50P and the marginal revenue function is MR = 940 - 0.04Q. The monopolist's marginal cost is MC = 40 + 0.02Q and his total cost is TC = 250,000 + 40Q + 0.01Q^2. A.. Find the monopolist's profit-m
- A monopolist has costs C(Q)=5Q. It has one consumer whose inverse demand is P=35-Q. a. Derive the monopolist's marginal cost and average cost. Graph the demand and marginal cost curve. b. Derive the p
- A monopolist has demand and cost curves given by: Q = 1,000 - 0.25P TC = 500 + 50Q + Q^2 Show work for all parts: a. Find the equation for the inverse demand curve (P as a function of Q). b. Show the total revenue function. c. Show the marginal revenue
- Suppose that a monopolist's inverse demand curve can be expressed as: P=20000-Q(2) The monopolist's total cost curve is: TC=8000Q a). Determine the monopolist's marginal revenue curve. b). Determin
- Consider a monopolist with the cost function C(Q) = 10Q and a corresponding marginal cost of MC(Q) = 10. The market demand is Q = 40 - 2P, which gives a marginal revenue of MR(Q) = 20 - Q. a. Write out the firm's inverse demand curve. b. Draw the (inverse
- A monopolist has the following cost and inverse demand functions: C = 400 - 20Q + Q^2 P = 100 - 4Q Find the profit-maximizing price for the monopolist. Determine also output, profits and consumer surplus.
- Suppose the (inverse) demand function for a single-price monopoly is P = 520 - 2Q. This means that the marginal revenue function for the monopolist is MR = 520 - 4Q. Assume the marginal cost function is given by MC = 4Q. Find the price that the monopolist
- Assume that a monopolist has a demand curve given by P = 1500 - 4Q, and T C = 100 + 5Q^2 with MC = 10Q 1. Graph the Demand, Marginal Revenue, Marginal Cost, and Average Total Cost curves. 2. What ar
- Suppose the (inverse) demand function for a single-price monopoly is P=280-2Q. This means that the marginal revenue function for the monopolist is MR=280-4Q. Assume the marginal cost function is given by MC=3Q. Find the price that the monopolist will char
- A monopolist has demand and cost curves given by: Q = 200 - P, TC = 50 + 25Q + 0.1Q^2. Show work for all parts: a. Find the equation for the inverse demand curve (P as a function of Q). b. Show total revenue as a function of Q. c. Show marginal revenue as
- Suppose the demand curve for a monopolist is QD= 47,000 - 50 P, and the marginal revenue function is MR=940 - 0.04Q. The monopolist's Marginal Cost = 40+ 0.02Q and its Total Cost = 250,000+ 40Q+ 0.01Q^2. a. Find the monopolist's profit-maximizing output
- 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
- Suppose a monopolist has a cost function and an inverse demand function a. What is the MC function? MC(x) = b. What is the MR function? MR(x) = c. Sketch the inverse demand, MC, and MR functions in a graph.
- 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
- A monopolist has the following cost and inverse demand functions: C = 400 - 20Q + Q^2 P = 100 - 4Q Determine output, profit and consumer surplus in the case where the monopolist can perfectly price discriminate.
- 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 has the cost function C(q)=cq with constant marginal cost c. a) If the monopoly is facing a linear inverse demand P(q)=A-bq. How much would price change after imposition of a per unit pr
- Suppose a monopolist faces an inverse demand function P 100 1 2Q, and the monopolist has a fixed marginal cost of $20. How much more would the monopolist make from perfect price discrimination compar
- A monopolist has cost c(q) = q^2 and the inverse demand for its product is P = 15 - Q. What is its marginal revenue curve? Derive its marginal cost. Derive the firm's profit maximizing output, total
- A monopolist has the following cost and inverse demand functions: C = 400 - 20Q + Q^2 P = 100 - 4Q Compute the DWL from monopoly power and in the case where the monopolist can perfectly price discriminate.
- Suppose a single price monopolist with TC=20Q faces an inverse demand curve P=120-Q and marginal revenue curve MR=120-2Q, where Q is output per period. a) What is the marginal cost (MC) for the firm?
- Suppose (inverse) market demand for a monopolist's product is given by P=90-Q and the monopolist's marginal cost is given by MC=Q (i.e. the marginal cost of the first unit (Q=1) is 1; the marginal cos
- Suppose a monopolist faces inverse demand given by P = 140-3Q, and marginal cost given by MC= Q. Assume the monopolist charges each customer at the same price The monopolist maximizes his profits when: A) P = MC B) MR = MC, and MR > P C) MR = MC, and MR<
- In the monopolist equilibrium, what is the relationship between price (P) and marginal cost (MC)?
- A monopolist faces a demand curve D(p)=100-2p and has a cost function c(y)=2y. What is the monopolist's optimal level of output and price?
- Suppose a monopolist has zero marginal cost and faces the following demand curve D(p) = 10 - 2p (a) Graph the demand curve, the marginal revenue curve, and the firm's marginal cost curve. Calculate t
- A monopolist faces the demand curve P=11-Q and the cost function is C=6Q a) Draw the demand and marginal revenue curves, and average and marginal cost curves. What are the monoplist's profit maximizi
- A monopolist faces demand given by: P = 100 - 0.4QD, and has marginal costs given by: MC = 10 + 0.2Q. (A) Draw the demand, marginal revenue and marginal cost curves. Calculate and show how much this firm will sell and what they will charge. (B) Calculate
- A monopolist faces the following demand: Q = 592 - 0.4P The monopolist's cost function is: C = 0.69Q^3 - 6Q^2 + 105Q + 1,716 Find the price that maximizes the monopolist's profit. Round your answe
- Find the deadweight loss when the monopolist sets one price given the following inverse demand, marginal revenue, and marginal cost functions. P = 200 - \frac{1}{10}Q, MR = 200 - \frac{1}{5}Q, MC = 40
- A monopolist has an inverse demand curve given by p(y)=12-y and marginal cost is 2y. What will be its profit-maximizing level of output? Suppose the government decides to put a tax on this monopolist
- A monopolist faces demand given by: P = 100 - 0.4Qd, and has marginal costs given by: MC = 10 + 0.2Q a. Draw demand, marginal revenue and marginal cost curves. Calculate and show how much this firm
- A monopolist can product at marginal cost of MC = 2y. (Constant ATC = MC implies that there are no fixed costs.) The firm faces a market demand curve given by: y^D = 36 - P. (a) Find the monopolist's
- Suppose that the inverse demand function is given by p = 120 - 2q and the cost function is given by TC = q2 + 10. a. What is the optimum amount of output and the market price in a monopolistic market? (Hint: a monopolist can influence the price) b. What i
- Suppose a monopolist has a demand curve that can be expressed as P = 60 - Q. The monopolist's marginal revenue curve can be expressed as MR = 60 - 2Q. The monopolist has constant marginal costs of $20. The profit-maximizing monopolist will have a deadweig
- A monopolist faces the following inverse demand curve: p = 100 - Q This firm's cost function is given by C(Q) = 10 + 5Q Find this firm's profit maximizing choice of output.
- There is a monopolist of widgets that has a cost function of C = 100 - 5Q + Q2. This creates a marginal cost of MC = 2Q - 5. Demand is given by the function P = 55 - 2Q. The marginal revenue is given by MR = 55 - 4Q. a. What price should the monopolist se
- 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?
- 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
- A monopolist faces a demand curve MB = 300 - 10Q and has declining marginal costs equal to MC = 150 = 5Q. A. Compute the optimal quantity Q* and the optimal price P*. B. Write down the equation for the monopolists' marginal revenue curve MR. C. How much w
- 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 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
- Suppose the demand curve for a monopolist is P = 200 - QD. The monopolist has a constant marginal and average total cost of $50 per unit. a. Find the monopolist's profit-maximizing output and price.
- Suppose a single price monopolist with TC = 20Q faces an inverse demand curve P = 120 - Q and marginal revenue curve MR = 120 - 2Q, where Q is output per period. (a) What is the marginal cost (MC) f
- 1. Consider a monopolist in a market with linear inverse demand p(q) = 4-4/2. The monopolist's cost function is c(q) = 2q. Write down the monopolist's profit function. Compute the profit-maximizing qu
- A monopolist faces the (inverse) demand for its product p=a-bQ. The monopolist has a marginal cost given by c and a fixed cost given by F. (a). Assume that F is sufficiently small such that the monop
- Suppose a monopolist faces the following demand curve: P = 180 - 4Q. The marginal cost of production is constant and equal to $20, and there are no fixed costs. What price will the profit-maximizing monopolist charge? A. P = $100 B. P = $20 C. P = $60 D.
- For a pure monopolist, marginal revenue is less than price because a.the monopolist's demand curve is perfectly elastic. b.the monopolist's demand curve is perfectly inelastic. c.when a monopolist
- 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
- 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(
- What is the monopolist's profit under the following conditions? The profit-maximizing price charged for goods produced is $12. The intersection of the demand curve and the marginal cost curve occurs where output is 15 units and the marginal cost is $6. a.
- A monopolist has the following cost and inverse demand functions: C = 400 - 20Q + Q^2 P = 100 - 4Q What would have been the competitive price in this market? If this competitive price is imposed as a price cap on the non-discriminating monopolist, w
- Suppose a monopolist faces the following demand curve: P = 100 - 3Q. Marginal cost of production is constant and equal to $10, and there are no fixed costs. What price will the profit maximizing monopolist charge? a. $100 b. $55 c. $45 d. $15 e. $10 f. No
- Tinysoft is a monopolist that faces demand curve D(p) = 7p^-3, has constant marginal costs MC = 30 and no fixed cost. What price should the monopolist charge? (a) p = 45 (b) p = 22.5 (c) p = 0.77
- A monopolist's cost function is C(y) = y(y/50 - 2) + y. It faces a demand function y = 100 - 25p. Solve for monopolist's output, price, profit and consumer surplus when the price is unregulated.
- You have the following information about a monopolist p = 20 -2q (1) MR = 20-4q (2) MC = 8 (3) where equation (1) denotes the monopolist demand curve, equation (2) denotes its the marginal revenue function, and equation (3) is the marginal cost, assume
- Suppose a monopolist is characterized as follows: P = 1200-6Qdemand curve for the monopolist, C = 8600 +32Q + Q^2 total cost function for the monopolist, MC =32 + 2Q marginal cost function for the monopolist. a. To maximize its profit, the monopolist s
- Answer the following questions for the single-priced monopolist sketched above if the demand curve shown above is P=21-.5Q, and the marginal cost curve is MC=.5Q. Fixed costs are 20. What is the singl
- 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
- A monopolist faces the following demand: P = 1,418 - 15Q The monopolist's cost function is: C = 10Q2 + 667Q + 326 Find the equilibrium price, P, if this market was perfectly competitive. Round you
- A monopolist faces the following demand: P = 1,890 - 16Q The monopolist's cost function is: C = 15Q^2 + 581Q + 505 Find the equilibrium price, P, if this market was perfectly competitive. Round y
- A monopolist faces demand given by:P=100 - 0.4Qd, and has marginal costs given by: MC=10+0.2Q. a. Draw the demand, marginal revenue and marginal cost curves (include any positive intercepts). Calculat
- The question below is based on the following data for a monopolist: At the price maximizing output rate, what are the marginal costs? A) $12.50 B) $7.50 C) $5.00 D) $0.50 E) Impossible to calculate wi
- 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 monopolist has the total cost function c(q) = 800 + 8q. The inverse demand function is 80 - 6q, where prices and costs are measured in dollars. If the firm is required by law to meet demand at a price equal to its marginal costs, a. the firm will earn
- Assume that a monopolist sells a product with a total cost function TC = 1,200+ 0.5Q^2 and a corresponding marginal cost function MC = Q. The market demand curve is given by the equation P= 300 - Q. a) Find the profit-maximizing output and price for this
- Assume that a monopolist sells a product with a total cost function TC = 2,150+ 0.3Q^2 and a corresponding marginal cost function MC = Q. The market demand curve is given by the equation P= 240 - Q. a) Find the profit-maximizing output and price for this
- Consider a monopolist facing an inverse demand function of p(q) = 15 - 3q, where 'q' denotes units of output. Assume that the cost of this firm is TC(q) = 5 + 4q. A) Find the monopolist's marginal rev
- A monopolist faces demand given by P = 100 - 0.4QD and has marginal costs given by MC = 10 + 0.2Q. a. Draw the demand, marginal revenue, and marginal cost curves. Calculate and show how much this firm will sell and what they will charge. b. Calculate the
- A monopolist faces demand given by:P=100-.4Qd, and has marginal costs given by: MC=10+.2Q. a. Draw the demand, marginal revenue and marginal cost curves (include any positive intercepts). Calculate a
- Suppose a monopolist faces the following demand curve: P=200-6Q. Marginal cost of production is constant and equal to $20, and there are no fixed costs. A) What is the monopolist's profit-maximizing l
- Assume a monopolist firm has the cost function C = 10800 +1/4Q^2 And faces the demand function p = 5000-4/3Q a. Find the equation for marginal cost b. Find the equation for marginal revenue c. De
- 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
- Assume a monopolist faces a market demand curve p = 100 - 2Q and MC = 20. a. What is the profit-maximizing level of output and price? b. Graph the marginal revenue, marginal cost, and demand curves,
- Consider a monopolist that faces a linear inverse demand of: P(q) = 304 - 4q. The firm has the cost function of: C(q) = 100 + 4q + 2q^2. What are the monopolist market price (p^M), quantity (q^M), and
- The monopolist faces a demand curve given by D(p) = 100 - 2p. Its cost function is c(y) = 2y. a. What is its optimal level of output and price? b. If the demand curve facing the monopolist has a constant elasticity of 2, then what will be the monopolist's
- Suppose a single-price monopolist with TC = 20Q faces an inverse demand curve P = 120 - Q and marginal revenue curve MR = 120 - 2Q, where Q is output per period. a. What is the marginal cost (MC) for the firm? What is the average cost (AC) for the firm? I
- 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
- Suppose the demand curve for a monopolist is QD = 500 - P, and the marginal revenue function is MR = 500 - 2Q. The monopolist has a constant marginal and average total cost of $50 per unit. a. Find th
- Suppose the demand curve for a monopolist is QD = 500 - P, and the marginal revenue function is MR = 500 - 2Q. The monopolist has a constant marginal and average total cost of $50 per unit. a. Find t
- Suppose a monopolist has a demand curve that can be expressed as P = 90 - Q. The monopolist's marginal revenue curve can be expressed as MR = 90 - 2Q. The monopolist has constant marginal costs and average total costs of $10. The profit-maximizing monopol
- The marginal cost for a monopolist is 5 and the price elasticity of demand (in absolute terms) is 4. What is the profit -maximising price? a. P = 8 b. P = 10 c. P = 12 d. P = 4 e. P = 16
- Suppose a monopolist faces the following demand curve: P = 88 - 3Q. The long-run marginal cost of production is constant and equal to $4, and there are no fixed costs. A) What is the monopolist's prof
- A monopolist has demand and cost curves given by: Q_D = 1000 - 2P \\ TC = 5,000 + 50Q a. The monopolist's profit-maximizing quantity is [{Blank}] units and the price is $[{Blank}], b. The monopolist's profit is $ [{Blank}].
- 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
- Consider a situation where a monopolist faces the following inverse market demand curve \\ p = 100 - q \\ and the following cost function \\ TC = 4q + q^2 \\ A. Derive the marginal revenue and marginal cost functions. B. What are the equilibrium price a
- The supply curve for a monopolist is given by: a. The firm's marginal cost curve above the average variable cost curve, b. The one point on the demand curve that corresponds to the quantity for which price is equal to marginal cost, c. The one point on t
- Suppose a monopolist faces the following demand curve: P = 440 - 7Q. The long-run marginal cost of production is constant and equal to $20, and there are no fixed costs. a) What is the monopolist's profit-maximizing level of output? b) What price will
- The monopolist's profit-maximizing quantity of output is determined by the intersection of which of the following two curves: a. Marginal cost and demand, b. Marginal cost and marginal revenue, c. Average total cost and marginal revenue, d. Average variab
- Consider a monopolist with a linear marginal cost which is decreasing for quantity 0 < or equal to 20 and at Q = 0, the marginal cost becomes 0. Assume a linear market demand so the marginal revenue i
- Suppose a monopolist faces the following demand curve: P = 180 - 4Q. The marginal cost of production is constant and equal to $20, and there are no fixed costs. What is the monopolist's profit-maximizing level of output? A. Q = 45 B. Q = 40 C. Q = 30 D. Q
- Suppose the demand curve, for a monopolist, is QD=500-P, and the marginal revenue function is MR=500-2Q. The monopolist has a constant marginal, and average total cost of $50 per unit. a. Find the mon
- A monopolist faces the following demand curve: Price Quantity demanded $10 5 $9 10 $8 16 $7 23 $6 31 $5 49 $4 52 $3 60 The monopolist has total fixed costs of $40 and a constant marginal cost of $5. At the profit-maximizing level of output, the monopolist
- A monopolist has the total cost function c (q) = 750 + 5 q. The inverse demand function is 140 - 7 q, where prices and costs are measured in dollars. If the firm is required by law to meet demand at a price equal to its marginal costs, a. the firm will ma
- The demand curve that a monopolist faces is given by P = 75 - 0.5 Q, so their marginal revenue is MR = 75 - Q, and the marginal cost function is given by MC = 2 Q. Assume also that ATC at the profit-maximizing level of production is equal to $12.50. The d
- Suppose a monopolist faces the following demand curve: P = 100 - 3Q. Marginal cost of production is constant and equal to $10, and there are no fixed costs. What is the monopolist's profit maximizing level of output? a. 10 b. 15 c. 16 d. 30 e. 33 f. None
- 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*)?
- A monopolist faces the following demand curve: P = 140 - 0.3Q , its total cost is given by: TC = 300 + 0.2Q^2 and its marginal cost is given by: MC = 0.4Q. (a) If it is a single-price monopolist, what is its profit-maximizing price and quantity? Show
Explore our homework questions and answers library
Browse
by subject