Purchase Solution

Solving for Profit Maximization

Not what you're looking for?

Ask Custom Question

Question: A monopolist faces a marginal revenue function of MR = 20 - Q. The monopolist's marginal cost is $15 at all levels of output. How many units of output should the firm produce in order to maximize profits?

Purchase this Solution
Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics

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

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.

Economics, Basic Concepts, Demand-Supply-Equilibrium

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

Basics of Economics

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

View More Free Quizzes
Related BrainMass Solutions

  • Case Study: Profit Maximization In Perfect Competition Market

    221202 Case Study: Profit Maximization In Perfect Competition Market Solving a Numerical or Profit Maximization in Perfect Competition Introduction: Firm PQR produces a product 'Alpha' under perfect competition market conditions.

  • price-output solution

    MR3=15+2Q For profit Maximization, we have MR=MC 15+2Q=150-Q Solving we get Q= 45 P= 127.5 MR4=5+0.5Q For profit Maximization, we have MR=MC 5+0.5Q=150-Q Solving we get Q= 96.66666667 Since this value

  • Profit maximization

    141602 Profit maximization for a perfectly competitive firm 8.

  • Profit Maximization

    Thus for profit maximization: x1+x2 = 10000 x1+2x2 = 12000 Solving for x1 and x2 we get: x1 = 8000 x2 = 2000 Thus the optimal point is when 8000 units of x1 and 2000 units of x2 are produced.

  • Perfectly Competitive Equilibrium

    For profit maximization MC=MR=P Hence we have 20+0.0002Q=30 Solving we get Q=500000 Profits = TC - TR TC=1,000,000+20*50000+0.0001*50000*50000=2250000 TR=30*50000=1,500,000 Profits = 1,500,000-2,250,000 = -750,000 C.

  • Revenue and Profit Maximization Under Oligopoly

    Revenue and Profit Maximization Under Oligopoly

  • Maximizing Profit with/without Price Discrimination

    d /dq1=80+0-8q1-0-0 =0 Solving we get q1=10 P1=90-4*10=50 For profit maximization in market 2, differentiate the profit equation with respect to q2 and equate to zero.

  • Economics Output Maximization and Profit Maximization

    99416 Economics Output Maximization and Profit Maximization What you are solving for in these problems is the optimal input combination based either on what I call Solution #1 and Solution #2; Solution #1 guarantees output maximization and Solution #2

  • Profit Maximizing Welfare

    (x) - d(x) = 12x-x^2-2x^2=12x-3x^2 For maximization, differentiate the welfare function w.r.t. x and equate it to zero d W(x)/dx = 12-3*2x=12-6x Equating it to zero, we get 12-6x=0 Solving for x, we get x=2 Thus, firm should produce 2 units of

  • Profit Maximization Output Levels

    What will be output of firm in long run and why Answer 1: In a perfectly competitive market, for profit maximization level: MC = Price Thus for maximizing profits: 100+2Q = 110 Solving for Q we get: 2Q = 110 - 100 => Q = 10/2 => Q = 5

View More Related Solutions