Questions from Microeconomics

Q: A firm faces the following average revenue (demand) curve:

A firm faces the following average revenue (demand) curve: P = 120 – 0.02Q where Q is weekly production and P is price, measured in cents per unit. The firm’s cost function is given by C = 60Q + 25,0...

Q: The following table shows the demand curve facing a monopolist who produces

The following table shows the demand curve facing a monopolist who produces at a constant marginal cost of $10: Price…….……………………………………………………………Quantity 18………………………………………………………………………………...0 16..…………………...

Q: Suppose that an industry is characterized as follows: C =

Suppose that an industry is characterized as follows: C = 100 + 2q2………….each firm’s total cost function MC = 4q………………..firm’s marginal cost function P = 90 – 2Q…………… industry demand curve MR = 90...

Q: In Example 11.1, we saw how producers of processed

In Example 11.1, we saw how producers of processed foods and related consumer goods use coupons as a means of price discrimination. Although coupons are widely used in the United States, that is not t...

Q: Suppose a profit-maximizing monopolist is producing 800 units of output

Suppose a profit-maximizing monopolist is producing 800 units of output and is charging a price of $40 per unit. a. If the elasticity of demand for the product is –2, find the marginal cost of the l...

Q: A firm has two factories for which costs are given by:

A firm has two factories for which costs are given by: Factory #1: C1(Q1) = 10Q12 Factory #2: C2(Q2) = 20Q22 The firm faces the following demand curve: P = 700 – 5Q where Q is total output – i.e., Q...

Q: A drug company has a monopoly on a new patented medicine.

A drug company has a monopoly on a new patented medicine. The product can be made in either of two plants. The costs of production for the two plants are MC1 = 20 + 2Q1 and MC2 = 10 + 5Q2. The firm’s...

Q: One of the more important antitrust cases of the 20th century involved

One of the more important antitrust cases of the 20th century involved the Aluminum Company of America (Alcoa) in 1945. At that time, Alcoa controlled about 90 percent of primary aluminum production i...

Q: A monopolist faces the demand curve P = 11 – Q,

A monopolist faces the demand curve P = 11 – Q, where P is measured in dollars per unit and Q in thousands of units. The monopolist has a constant average cost of $6 per unit. a. Draw the average and...

Q: Michelle’s Monopoly Mutant Turtles (MMMT) has the exclusive right to

Michelle’s Monopoly Mutant Turtles (MMMT) has the exclusive right to sell Mutant Turtle t-shirts in the United States. The demand for these t-shirts is Q = 10,000/P2. The firm’s short-run cost is SRTC...