Answer to Question #256224 in Microeconomics for Kay

Question #256224

A monopoly that faces a demand curve given by q= 1-P and has a constant marginal cost is 0.1 In this situation the monopoly’s profit maximizing output level is

Expert's answer

P = 1 - Q

MR = 1 - 2Q

MC = 0.1

MR = MC

1 - 2Q = 0.1

1 - 0.1 = 2Q

0.9 = 2Q

Q = 0.45

Learn more about our help with Assignments: Microeconomics

Comments

No comments. Be the first!

Leave a comment

Related Questions

1. Work based assignment (WBA): try to collect 10 to 20 years sales details of a company forecast their
2. Try to collect 10 to 20 years sales details of a company and forecast their demand for the next year
3. Historically, when has the Federal government been most likely to run budget deficits? What has be
4. 4. The supply and demand for broccoli are described by the following equations: Supply: QS = 4P –
5. a) What is the percentage change in the real price (1990 dollars) from 1980 to 2000? Compare th
6. I have given my answers for the following questions. Can you checkout whether the answers are correc
7. 1. Using the marginal analysis for an individual perfectly competitive firm, demonstrate graphically

Who Can Help Me with My Assignment

There are three certainties in this world: Death, Taxes and Homework Assignments. No matter where you study, and no matter…
How to Finish Assignments When You Can’t

Crunch time is coming, deadlines need to be met, essays need to be submitted, and tests should be studied for.…
How to Effectively Study for a Math Test

Numbers and figures are an essential part of our world, necessary for almost everything we do every day. As important…