QUESTION 1Assume the market demand curve faced by a monopolist isQ D =500 - 10 P,and itsshort-run total cost function is...

Get help with any kind of assignment - from a high school essay to a PhD dissertation

  1. Order Custom Essay, Course Work, Research and Term Papers

Assume the market demand curve faced by a monopolist

April 14, 2018

QUESTION 1
Assume the market demand curve faced by a monopolist is

Q D =500 - 10 P,

and its

short-run total cost function is SRTC (Q) =25 +2Q.
(a)
(b)
(c)
(d)
(e)

Derive the inverse demand curve for the monopolist.
Using the result obtained in part (a), derive the monopolist’s total revenue
curve as a function of Q. Compute the corresponding marginal revenue
function.
Compute the firm’s short run marginal cost curve.
Using the results obtained in part (b) and part (c), derive the monopolist’s
short-run profit-maximizing level of output.
Determine the price charged by the profit-maximizing monopolist and the
amount of profit earned.

QUESTION 2
Consider a broking firm that supplies consulting services. The corresponding demand
3Q 2 Q 3
relation and cost functions are 4 P +Q - 16 =0 and TC (Q) =4 +2Q + ,
10 20
respectively.
(a)
(b)
(c)

Derive the first-order condition for the firms profit maximization. Determine the
profit maximizing level of Q.
Verify that, at the point of maximum profit that the second-order sufficient
condition holds.
Check that marginal revenue is equal to marginal cost at the profit-maximizing
level of output determined in (b).

QUESTION 3
A firm’s production function is given by
Q =L2 e - 0.01L .
Find the value of L which maximizes the average product of labour. Ensure you have
found the value of L that maximizes the average product.
QUESTION 4
A firm produces three products—leather, cardboard and string—denoted y1 , y2 and
y3 , respectively. The corresponding total revenue function has the form
2
TR =5 +75 y1 - 2 y12 +8 y2 - ½ y1 y2 +4 y3 .

At what combination of outputs will the marginal revenues of all three products be
simultaneously equal zero?










OUR SERVICE CHARTER






  • 100% Confidentiality

    We mind about the interests of our clients holistically. It is for this reason that we maintain high-level confidentiality in regard to our clients’ personal information. Importantly, we use the information for purposes that relate with our services only. The only information that we require relates to our clients’ writing needs. It is also important to note that our clients’ payment information is secure with us. If there is any query in regard to the payment information, then our support team is always willing to provide any clarifications in a prompt manner. Confidentiality extends to the fact that a client made use of our services. It means that we hold our relationship with our clients in secrecy. Importantly, our confidentiality measures beat any advanced security measure that can identify any information regarding our relationship with our clients. It means that our clients transact with us freely without any fear of information leakage.

  • Free Revisions

    The papers that we deliver usually reflect a high quality level. However, there is always a room for any additional fine-tuning touch in line with a client’s preference without any additional charges. To begin with, a client has discretion to make a choice on their preferred top writer from our team. Such a writer could have handled past work for the client and received a positive review from the same. It means that the client has confidence of the quality of service that the writer delivers. Secondly, a client has an option of making use of our editing services. Our editors are always on standby to revise the paper and ensure that it matches with the expectations of a client that the instruction brief had detailed. The revision covers content adjustment that removes off-topic details, addition of sources, removal of language style errors, and assessment of the referencing style in order to enhance compliance.

  • 24/7 Customer Support

    Our team of writers prides in high-level competence. The writers have the required expertise that enables them to deliver quality papers that match with the requirements of the grading rubric. In the absence of the rubric, we ensure that the writers follow the clients’ instruction brief to the letter. We can confidently assure our clients to expect nothing short of a pass from the papers that we deliver. Importantly, we have qualified writers who handle different areas of study. This diversification enables us to allot clients’ orders to the writer who is well seasoned in the subject area of study. It also enables the team to become more professional due to specialization. Our clients should put their trust in our service delivery and expect to successfully attain high grades at all times. The fact that we offer free revision reflects our dedication in delivering high quality papers that match with our clients’ expectations.

  • Better Grades Guarantee

    Our team of writers prides in high-level competence. The writers have the required expertise that enables them to deliver quality papers that match with the requirements of the grading rubric. In the absence of the rubric, we ensure that the writers follow the clients’ instruction brief to the letter. We can confidently assure our clients to expect nothing short of a pass from the papers that we deliver. Importantly, we have qualified writers who handle different areas of study. This diversification enables us to allot clients’ orders to the writer who is well seasoned in the subject area of study. It also enables the team to become more professional due to specialization. Our clients should put their trust in our service delivery and expect to successfully attain high grades at all times. The fact that we offer free revision reflects our dedication in delivering high quality papers that match with our clients’ expectations.




Related Questions