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Category > Economics Posted 10 Jun 2017 My Price 5.00

A monopolist faces the following demand curve: Q = 144/P2 where Q is the quantity demanded

 

A monopolist faces the following demand curve: Q = 144/P2 where Q is the quantity demanded and P is price. Its average variable cost is AVC = Q^1/2 and its &ed cost is 5. a. What are its profit-maximizing price and quantity? What is the resulting profit? b. Suppose the government regulates the price to be no greater than $4 per unit. How much will the monopolist produce, and what will its profit be? c. Suppose the government wants to. set a ceiling price that induces the monopolist to produce the largest possible output. What price will do this?
 
 

Answers

Alpha Geek
(8)
Status NEW Posted 10 Jun 2017 10:06 AM My Price 5.00

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file 1497089711-Answer.docx preview (224 words )
A-----------nsw-----------er -----------2 ----------- Jo-----------urn-----------al -----------ent-----------rie-----------s D-----------ate----------- Ac-----------cou-----------nt -----------Deb-----------it -----------Cre-----------dit----------- 01------------01------------20-----------16 -----------Cas-----------h 3-----------500----------- Sa-----------le -----------350-----------0 C-----------ost----------- of----------- go-----------ods----------- so-----------ld -----------200-----------0 I-----------nve-----------nto-----------ry -----------200-----------0 0-----------1-0-----------2-2-----------016----------- Eq-----------uip-----------men-----------t 5-----------500----------- Ac-----------cou-----------nt -----------pay-----------abl-----------e 5-----------500----------- 01------------04------------20-----------16 -----------Adv-----------ert-----------ise-----------men-----------t e-----------xp -----------150----------- Ac-----------cou-----------nt -----------pay-----------abl-----------e 1-----------50 -----------01------------08------------201-----------6 A-----------cco-----------unt----------- re-----------cei-----------vab-----------le -----------500-----------0 S-----------ale----------- 50-----------00 -----------Cos-----------t o-----------f g-----------ood-----------s s-----------old----------- 28-----------00 -----------Inv-----------ent-----------ory----------- 28-----------00 -----------01------------10------------201-----------6 I-----------nve-----------nto-----------ry -----------950-----------0 A-----------cco-----------unt----------- pa-----------yab-----------le -----------950-----------0 0-----------1-1-----------3-2-----------016----------- Eq-----------uip-----------men-----------t 8-----------00 -----------Cas-----------h 8-----------00 -----------01------------16------------201-----------6 A-----------cco-----------unt----------- pa-----------yab-----------le -----------550-----------0 C-----------ash----------- 55-----------00
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