Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Solve this for me A. The total cost function for a monopolist is given by TC = 4,000 + 36Q + 0.06Q2 and the demand

Solve this for me

image text in transcribed
A. The total cost function for a monopolist is given by TC = 4,000 + 36Q + 0.06Q2 and the demand equation is Q = 1,440 - 12P per unit of output. i. What is the profit maximising level of output? (5 marks) ii. Calculate the profit maximizing price. (2 marks) iii. Calculate total profit at the profit maximising level of output. (3 marks) B. If in question A it were a perfectly competitive firm instead of a monopolist, what would be the equilibrium price and quantity? (5 marks) C. The total cost function for a perfectly competitive firm is estimated to be TC = 720 + 250Q - 6Q2 + 0.04Q3. The price of each device is $35. i. Should the owner close the outlet? Explain! (5 marks) D. Ital Shack is a local cook shop which produces packaged vegetarian meals for the health conscious. It retails its meal packages for $20 each. It has also estimated that by hiring additional cooks, it can produce the meals at the following rate. Number of Vegetarian meal packages produced and sold per Servers (L) day(Q)

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_2

Step: 3

blur-text-image_3

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

The Great Convergence Information Technology And The New Globalization

Authors: Richard Baldwin

1st Edition

067466048X, 9780674660489

More Books

Students also viewed these Economics questions

Question

Find the domain of each rational expression. ? 25 5

Answered: 1 week ago

Question

Why is job analysis considered to be a basic HR tool?

Answered: 1 week ago

Question

5.1 Define recruitment and describe the recruitment process.

Answered: 1 week ago