Exam 23: Monopoly-Part B

A profit-maximizing monopoly faces an inverse demand function described by the equation p(y)= 60 - y and its total costs are c(y)= 10y, where prices and costs are measured in dollars.In the past it was not taxed, but now it must pay a tax of 4 dollars per unit of output.After the tax, the monopoly will

if the demand for pigeon pies is given by p(y)= 140 - y/4, then the level of output that will maximize Peter's profit is

if demand for the book is Q = 1,600 - 100p, the marginal revenue function is given by

The demand for Professor Bongmore's new book is given by the function Q = 8,000 - 100p.If the cost of having the book edited and typeset is $17,000, if the marginal cost of printing an extra copy is $4, and if he has no other costs, then he would maximize his profits by

if demand for the book is Q = 900 - 300p, the marginal revenue function is given by

if demand for the book is Q = 1,400 - 100p, the marginal revenue function is given by

if there are no fixed costs and marginal cost is constant at $56, the price elasticity of demand at the profit-maximizing level of output is closest to

The demand for Professor Bongmore's new book is given by the function Q = 4,000 - 100p.If the cost of having the book edited and typeset is $17,000, if the marginal cost of printing an extra copy is $4, and if he has no other costs, then he would maximize his profits by

if there are no fixed costs and marginal cost is constant at $48, the price elasticity of demand at the profit-maximizing level of output is closest to

A profit-maximizing monopoly faces an inverse demand function described by the equation p(y)= 90 - y and its total costs are c(y)= 9y, where prices and costs are measured in dollars.In the past it was not taxed, but now it must pay a tax of 4 dollars per unit of output.After the tax, the monopoly will

if the demand schedule for Bong's book is Q = 2,000 - 100p, the cost of having the book typeset is $9,000, and the marginal cost of printing an extra book is $4, then he would maximize his profits by

if the demand for pigeon pies is given by p(y)= 140 - y/2, then the level of output that will maximize Peter's profit is

A firm has invented a new beverage called Slops.It doesn't taste very good, but it gives people a craving for Lawrence Welk's music and Professor Johnson's jokes.Some people are willing to pay money for this effect, so the demand for Slops is given by the equation q = 16 - p.Slops can be made at zero marginal cost from old-fashioned macroeconomics books dissolved in bathwater.But before any Slops can be produced, the firm must undertake a fixed cost of $69.Since the inventor has a patent on Slops, it can be a monopolist in this new industry.

A firm has invented a new beverage called Slops.It doesn't taste very good, but it gives people a craving for Lawrence Welk's music and Professor Johnson's jokes.Some people are willing to pay money for this effect, so the demand for Slops is given by the equation q = 18 - p.Slops can be made at zero marginal cost from old-fashioned macroeconomics books dissolved in bathwater.But before any Slops can be produced, the firm must undertake a fixed cost of $86.Since the inventor has a patent on Slops, it can be a monopolist in this new industry.

if demand for the book is Q =1,000 - 300p, the marginal revenue function is given by