1. A profit-maximizing firm operating in a perfectly competitive market can sell products for $100 per unit. The firm has a cost function represented by:
C(Q) = 1000- 160Q + 10QSqr(10 q squared) . The market demand function for this product is Qd = 500 - 3P.

a.What is the profit maximizing output for this company?

b.What is the profit (loss) this firm will make at the profit maximizing level of output?

c.How many firms will compete in this market at the profit maximizing price and quantity? (Assume all firms are identical; i.e., have the same cost function and fact the same price.

d.In the long run, what will be the profit-maximizing price and quantity in this market?

e.What is the profit maximizing quantity in the long run and what will the level of economic profit be for each of these N identical firms?

Solution Summary

The profit maximizing level of output, the number of firms that will compete in the market at the profit maximizing price and quantity, the profit-maximizing price and quantity in the long run etc. are calculated.

Assume a monopolist with the following:
Qd =100-10p
TC = 1 + 2Q
Find the following:
a) Price at profitmaximizingoutput
b) Profitmaximizingoutput
c) Total Revenue at profitmaximizingoutput
d) Total Cost at profitmaximizingoutput
e)Profit

Assume that a perfectly competitive firm is currenly producing 5,000 units of output and is earning $10,000 in total revenue. The marginal cost of the 5,000th unit of output is $3. Is this firm producing the profitmaximizinglevel of output? How do you know?

Use Figure 8.2, which represents the situation faced by a monopolist, to answer questions a-c.
Figure 8.2 - Attached file
a. In Figure 8.2, indicate the profitmaximizing price and outputlevel and label them P1 and Q1.
b. Shade in the area that represents the firm's economic profit (or loss).
c. If this firm wished to

Please refer attached file for diagram.
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-maximizingoutputlevel
b. Profit-maximizing price
c. Total Revenue
d. Total Cost
e. Total profit or loss.
State the correct

A firm uses a single plant with costs C = 160 + 16Q + .1Q2 and faces the price equation P = 96 - .4Q.
a. Find the firm's profit-maximizing price and quantity. What is its profit?
b. The firm's production manager claims that the firm's average cost of production is minimized at an output of 40 units. Furthermore, she claim

A monopolist's demand function is given by
P = 80-3Q
(with MR = 80-6Q).
Its total cost function is
TC = 20Q + 200
(with MC = 20).
(i) Using algebra determine the profitmaximizingoutput, price and optimal profit for the firm.
(ii) Suppose that instead of maximizingprofit, the firm wants to maximize total revenue

1. Use the "graph attached" What is the firm's Total Revenue at the profitmaximizinglevel of output
32
0
16
8
14
Not enough information
2. Use the "graph attached" What is the firm"s Total Profits at the profitmaximizinglevel of output?
0
32
16

Use the attached graph to answer the following questions
a) what is the monopolist's profit-maximizingoutput?
b)At the profit-maximizingoutput rate, what are the monopolist's average total cost and average revenue?
c) At the profit-maximizingoutput rate, what are the monopolist's total cost and total revenue?
d) What i

Suppose that the market demand for Mountain Spring Water a monopolist, is given as follows:
P=1200-Q. Mountain spring water can be produced at no cost. What is the profitmaximizinglevel of output and price of this monopolist?