Purchase Solution

Profit Maximizing Price in Market Structure

Not what you're looking for?

Ask Custom Question

Market Structure and Policy. See attached file for full problem description.

Attachments
Purchase this Solution
Solution Summary

Find the profit maximizing price and other factors.

Solution Preview

Please see the attached file.

(a) The MR curve starts from the top point of the demand curve and goes to half the width on the
horizontal axis. The MC curve is a straight horizontal line at P = 6. The point of intersection of these
two lines, when projected to the horizontal axis, gives the profit-maximizing ...

Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

View More Free Quizzes
Related BrainMass Solutions

  • Finding optimal output and price levels

    The profit maximizing output for your firm is C=40+5Q^2 Marginal cost=MC=dC/dQ=10Q Marginal Revenue=MR=50 (Marginal revenue is equal to price in case of perfect competition) Put MC=MR for profit maximization 10Q=50 Q=5 The profit maximizing

  • Maximizing Profit: The Oligopolist Kinked Demand Curve Model

    How does this change in the firm's cost structure change its profit-maximizing output and price? What practical implications for the firm's customers does your answer have?

  • Market Structure

    Is this firm a price-taker or a price-searcher? Explain exactly how you can tell the difference. b. Illustrate the firm's profit maximizing price and output in the diagram. State the profit maximizing output rule. c.

  • cost & oligopolies

    If something happens to cause that equation to change to MC=$22+$1Q, how does this change in the firm's cost structure change its profit-maximizing output and price? This will not change the price structure at all.

  • Cost-Demand Conditions: Profit Maximizing Quantity

    But, the output produced in the monopoly market will be less than the perfect competitive market, while the price is higher in the monopoly market. In the above diagram, Pm & Qm are the monopoly price & output.

  • Revenue (demand) and cost situation facing an individual firm

    If this firm operates at its profit maximizing position, what will its profit (or loss) be? Show your work. D. Describe the type of market structure in which this firm operates and whether the table indicates a short run or long run position.

  • Calculating profit-maximizing output and price level

    The follwing diagram shows the cost structure of a mononpoly firm as well as market demand. Identify on the graph and calculate the following: a. Profit-maximizing output level b. Profit-maximizing price c. Total Revenue d. Total Cost e.

  • Determine the amount of profit or loss

    Hence, 4 units is the profit maximizing level as margin cost is below the selling price. Johnston Production's fixed cost is $20 and the market price of each product sold is $25.

  • Managerial Economics - Farmer Case Study

    Both farmers are price takers, so their profit-maximizing P is $4. Farmer Smith's profit-maximizing quantity is 4000 and his maximum profit (i.e. his minimum loss) is -$1000.

View More Related Solutions