Explore BrainMass


This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

Online Economics Managerial class using Michael Baye's 5th edition book.

You are the manager of a monopoly, and your demand and cost functions are given by
P = 200 - 2Q and C(Q) = 2,000 + 3Q2, respectively.

a. What price-quantity combination maximizes your firm's profits?

b. Calculate the maximum profits.

c. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price-quantity combination?

d. What price-quantity combination maximizes revenue?

e. Calculate the maximum revenues.

f. Is demand elastic, inelastic, or unit elastic at the revenue-maximizing price-quantity combination?

Please see attached for full question.

© BrainMass Inc. brainmass.com October 24, 2018, 6:26 pm ad1c9bdddf

Solution Summary

Monopoly/Oligopoly problems are solved.

See Also This Related BrainMass Solution

Economics: monopoly, oligopoly, cartel

-Explain the difference between a monopoly and an oligopoly, and a cartel.
-Provide an example of a monopoly, an oligopoly, and a cartel.
-What are the welfare effects of monopolies and oligopolies.
-How does game theory explain the interactions of firms within oligopolies and cartels?
-What is the economic purpose of OPEC. What has happened to oil prices over the past five years?
-Synthesize the information gathered and tell the economic consulting firm which actions you think OPEC will take over the next year.

View Full Posting Details