Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi there, I need help with these questions. Please explain the answers in full detail and with working out the questions. Thanks Q1) The inverse

Hi there, I need help with these questions. Please explain the answers in full detail and with working out the questions.

Thanks

Q1) The inverse demand curve a monopoly faces is p = 100 - Q . The firm's cost curve is C(Q) = 10 + 5Q (so MC = 5). What is the profitmaximizing solution? How does your answer change if C(Q) = 100 + 5Q ?

Q2)The inverse demand curve a monopoly faces is p = 10Q-0.5 .

a. What is the firm's marginal revenue curve?

b. The firm's cost curve is C(Q) = 5Q . What is the profit-maximizing solution?

Q3) Consider the inverse demand curve p = 210 - 3Q and the cost function C = 100 + 2Q2 . If the market were competitive, calculate the incidence of a specific tax, t=7, that would fall on consumers. Calculate the incidence of the same tax if the market were instead a monopoly.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial economics applications strategy and tactics

Authors: James r. mcguigan, R. Charles Moyer, frederick h. deb harris

12th Edition

9781133008071, 1439079234, 1133008070, 978-1439079232

More Books

Students also viewed these Economics questions