Quantity |
Price |
TR |
MR |
TC |
MC |
TFC |
TVC |
AFC |
AVC |
ATC |
Profit |
1 |
1000 |
|
|
|
|
|
|
|
|
|
-100 |
2 |
|
|
|
|
500 |
|
|
|
|
|
|
3 |
|
2400 |
|
|
|
|
|
|
|
|
600 |
4 |
|
|
400 |
|
|
|
|
|
|
500 |
|
5 |
|
|
|
|
400 |
500 |
|
|
|
|
|
6 |
|
|
|
3000 |
|
|
|
|
|
|
|
7 |
|
|
|
|
|
|
|
|
500 |
|
|
8 |
|
|
|
|
|
|
4500 |
|
|
|
|
P = 15 – 2q
TC = 15 + 3q + q2
MC = 3 + 2q
a. Find the output level q* which
maximizes the monopolist’s profit (show work) _______
b. Calculate the monopolist’s profit
(or loss) at q* ________
c. Should the firm shut down or
continue producing? Explain.
d. Calculate the monopolist’s AVC at
q*? ________
e. What is the firm’s MC at the
output level q*? __________
f. If the firm was a purely competitive firm, how much would
it have produced and at what price?
Show work.
Price = $18
TC = 28 + 2Q +
0.5Q2
MC
= 2 + Q
a.
At
what level of output (q*) will the firm maximize its profits?
b.
At
that level of output, q*, how much Total Revenue does the firm earn?
c.
How
much profit (or loss) does the firm make by producing q*
d.
What
is the firm’s TFC?
e.
What
is the firm’s AVC at the output level q*?
f.
If
the market was made up of 100 identical firms, calculate the total market
output.
P = 300 - Q (demand curve)
MC = 150 + 3Q (marginal cost curve)
i.
Find the monopolist’s equilibrium price
and quantity consistent with profit maximization.
ii.
What is the monopolist’s total revenue at
the equilibrium quantity?
iii.
Now assume that the same monopoly firm
produces for two different and separable markets – one domestic, the other,
foreign, whose demand functions are given as follows:
P = 400 – 2Q (domestic market demand)
P = 200 – Q (foreign market demand)
If
the firm now acts as a discriminating monopolist, calculate the price the firm
would charge in each market.
5. Consider
a firm producing under conditions of pure competition, in a market
characterized by the following demand and supply conditions:
P = 200 – Qd (Demand); P = 100+ Qs (Supply)
i.
What is the market equilibrium price and
quantity?
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