Billboards are provided in a market run by a monopoly, ClarityStream. Thedemand for billboards is P =
Question:
Billboards are provided in a market run by a monopoly, ClarityStream. Thedemand for billboards is P = 1600 — 20QD.
a. Calculate the function for ClarityStream’s marginal revenue.
b. Calculate marginal revenue at Q = 10, 20, 30, and 40. 0.
Calculate profit-maximizing quantity if MC= l.000.
Satellite radio is provided by a monopoly. The marginal cost for providing satellite radios is MC = 10 + (Q/10). The demand function for satellite radios isP = 10,000 — 5.5QD. Calculate the profit-maximizing price and quantity that themonopoly will choose.
The demand function for musical tonal bells is P = 52 — QD. Musical tonal bellsare produced by a monopoly Philly Bells (nobody else has ever managed to makethem quite as good). The total cost of producing bells is TC= 48+ 4Q+ Q2, whichmeans that marginal cost is MC= 4 + 2Q. Calculate the optimal price, quantity, and profit.
Step by Step Answer:
Globalization For Development Meeting New Challenges Meeting New Challenges
ISBN: 9780191624032
1st Edition
Authors: Ian Goldin, Kenneth Reinert