characteristics of a perfectly competitive market
Not what you're looking for?
1. What are the main characteristics of a perfectly competitive market that cause buyers and sellers to be price takers?
2. A perfectly-competitive firm (a firm that operates in a perfectly competitive market) has the following cost function:
TC = 2000 + 10Q + 0.02Q^2
The market price is $25, so that TR = PQ = 25Q.
What is the optimal (profit-maximizing) output level?
What is MR at that level?
What is MC at that level?
What is the profit at that level?
3. Explain a monopolist's output and price decisions.
4. A monopoly firm has the following cost function:
TC = 10000 + 100Q + 0.02Q^2
and it faces a market demand function:
Q = 20000 - 100P
What is the firm's optimal (profit-max) output?
What is the profit-maximizing price that the firm charges?
What is the maximum profit?
Please refer to attached word document.
thanks
Purchase this Solution
Solution Summary
A monopolist's output and price decisions are explicated.
Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.