Managerial Economics & Business Strategy (Mcgraw-hill Series Economics)
9th Edition
ISBN: 9781259290619
Author: Michael Baye, Jeff Prince
Publisher: McGraw-Hill Education
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Question
Chapter 8, Problem 9CACQ
(A)
To determine
The monopolist's marginal revenue function is to be ascertained.
(B)
To determine
The profit maximizing output for each facility is to be calculated.
(C)
To determine
The profit maximizing
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A monopolist's inverse demand function is estimated as P= 400 - 2Q. The company
produces output at two facilities; the marginal cost of producing at facility 1 is MC₁(Q1) =
7Q₁, and the marginal cost of producing at facility 2 is MC2(Q2)=2Q2-
a. Provide the equation for the monopolist's marginal revenue function. (Hint: Recall that Q₁
+ Q₂ = Q.)
MR(Q) = 400
$
7Q₁-
b. Determine the profit-maximizing level of output for each facility.
Instructions: Round your response to two decimal places.
Output for facility 1:
14
Output for facility 2:
50
c. Determine the profit-maximizing price.
Instructions: Round your response to the nearest penny (two decimal places).
272 x
4 Q2
A monopolist's inverse demand function is estimated as P=100-2Q. The company produces output at two facilities; the marginal
cost of producing at facility 1 is MC₁(Q)=4Q₁, and the marginal cost of producing at facility 2 is MC₂(0₂)=202.
a. Provide the equation for the monopolist's marginal revenue function. (Hint: Recall that Q+Q₂ = Q.)
MR(Q)=-91-9₂
b. Determine the profit-maximizing level of output for each facility.
Instructions: Round your response to two decimal places.
Output for facility 1:[
Output
for facility 2:[
c. Determine the profit-maximizing price.
Instructions: Round your response to the nearest penny (two decimal places).
A monopolist’s inverse demand function is P = 150 − 3Q. The company produces output at two facilities; the marginal cost of producing at facility 1 is MC1(Q1) = 6Q1, and the marginal cost of producing at factory 2 is MC2 (Q2) = 2Q2.
a. Provide the equation for the monopolist’s marginal revenue function. (Hint: Recall that Q1 + Q2 = Q.)
b. Determine the profit-maximizing level of output for each facility.
c. Determine the profit-maximizing price.
Chapter 8 Solutions
Managerial Economics & Business Strategy (Mcgraw-hill Series Economics)
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- A monopolist’s inverse demand function is estimated as P = 450 − 3Q. The company produces output at two facilities; the marginal cost of producing at facility 1 is MC1(Q1) = 6Q1, and the marginal cost of producing at facility 2 is MC2(Q2) = 2Q2. a. Provide the equation for the monopolist’s marginal revenue function. (Hint: Recall that Q1 + Q2 = Q.) MR(Q) = − Q1 − Q2 b. Determine the profit-maximizing level of output for each facility. Instructions: Round your response to two decimal places. Output for facility 1: Output for facility 2: c. Determine the profit-maximizing price. Instructions: Round your response to the nearest penny (two decimal places). $arrow_forwardA monopolist's inverse demand function is P=150-3Q. the company produces output at two facilities; the marginal cost of producing at facility 1 is MC1(Q1)=6Q1, and the marginal cost of producing at facility 2 is MC2(Q2)=2Q2 A). Provide the equation for the monopolist's marginal revenue function. MR(Q)= ___ -___Q1-____Q2 B). Determine the profit-maximizing level of output for each facility. Output for facility 1: Output for facility 2: C). Determine the profit-maximizing price.arrow_forwardA monopolist has the following marginal revenue function MR = 1,600 - 20Q, and marginal cost function MC = 200 + 30Q and faces the following the demand curve p 1200-10Q. And the total cost function is TC= 200Q+15Q². Q refers to the number of units produced by the monopolist. Find the profit maximizing quantity (in number of units produced) for this monopolist. The result should be an integer number, no decimals (e.g. if the result is 3.65 write 4, if the result is 3.64, write 3). = Your Answer:arrow_forward
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