1. Suppose a monopolist faces the market demand function P = a - bQ. Its marginal cost is given by MC = c + eQ. Assume that a > c and 2b + e > O.
a) Derive an expression for the monopolist's optimal quantity and price in terms of a, b, c, and e.
b) Show that an increase in c (which corresponds to an upward parallel shift in marginal cost) or a decrease in a (which corresponds to a leftward parallel shift in demand) must decrease the equilibrium quantity of output.
c) Show that when e 2:: 0, an increase in a must increase the equilibrium price.

2. A monopolist serves a market in which the deĀ¬mand is P = 120 - 2Q. It has a fixed cost of 300. Its marginal cost is 10 for the first 15 units (MC = 10 when 0 ≤ Q ≤ 15). If it wants to produce more than 15 units, it must pay overtime wages to its workers, and its marĀ¬ginal cost is then 20. What is the maximum amount of profit the firm can earn?

3. Suppose that demand and supply curves in the market for corn are Qd = 20,000 - SOP and QS = 30P. Suppose that the government would like to see the price at $300 per unit and is prepared to artificially increase demand by initiating a government purchase program. How much would the government need to spend to achieve this? What is the total deadweight loss if the government is successful in its objective?

Given the estimated demandfunction is:
Qd = 36315-9937 *price-0.09 * income+0.02 * customers + 2918* price of natural gas
Estimate the (own) price elasticity (of demand). Assume the following: own price is $3, income is $60,000, the market has 2,000,000 potential customers and the price of natural gas is $4. (The following

Suppose that the demand for pizza increases. Carefully explain how the rationing function of price will restore market equilibrium. Explain the long-run effects of the guiding function of price in this scenario.

Inverse, Direct DemandFunction, & Point Price Elasticity
Copy and paste the following data into Excel:
a) Run OLS to determine the inverse demandfunction (P = f(Q)); how much confidence do you have in this estimated equation? Use algebra to then find the direct demandfunction (Q = f(P)).
b) What is the point price elasti

Please show all the steps to calculate the answers to the attached questions about using the chain rule on an American population function and a demandfunction for desk lamp prices.

The producer of a cosmetic product needs to decide the optimal price to charge and the optimal quantity to supply in the market. The demandfunction of the cosmetic product is given as QD = 40 - 2P, while the supply function of the cosmetic product is given as QS = 2P where P is price, QD is quantity demanded, and QS is quantity

1. Suppose the marketdemand curve for a Product is given by Q = 250 - 5P and the market supply curve is given by Q = -50 + 25P.
1. What are the equilibrium price and quantity in this market?
2. At the market equilibrium, what is the price elasticity of demand?
3. Suppose the price in this market is $8. What is the amou

The demandfunction for bicycles in Holland has been estimated to be:
Q = 2,000 + 15Y - 5.5P
Where Y is income in thousands of euros, Q is the quantity demanded in units, and P is the price per unit. When P = 150 euros and Y = 15 (000) euros, determine the following:
a. Price elasticity of demand
b.

The DemandFunction for a product can be as Q=400-2P. We would have a fixed cost for this product as 200 and our variable costs are 0.5 per unit. Please let me know the equation for the profit. When is profit maximized? What is the maximum profit?

The monthly wholesale demand for beef in the Honolulu market are shown below.
Quantity of Fresh Beef Price of Fresh Beef in
Sold in 1000 lbs Dols. per Pound
10 10
10 9
10