Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. economics
  3. 1. a monopolist faces demand of q = 20 - p. its co

1. A monopolist faces demand of Q = 20 - P. Its costs are TC...

50.1K

Verified Solution

Question

Economics

1. A monopolist faces demand of Q = 20 - P. Its costs are TC =2Q + 10.

f) If we had a perfectly competitive market with demand of Q =20 – P and a supply of P = 2, what market price and quantity wouldhave been the equilibrium? Is Q lower and P higher with amonopoly?

g) Now, go back to the original monopolist. The firm hasunveiled a successful new ad campaign. Its costs are the same asabove, but it now faces a demand of Q = 30 - P. (Satisfy yourselfthat this is an increase in demand.) Find, using either a table ora graph, the new price, quantity, and profits of this firm.

Answer & Explanation Solved by verified expert
4.4 Ratings (708 Votes)
1 f Perfectly competitive market Demand Q 20 P or P 20 Q Supply P 2 Market equilibrium price and quantity is where the Demand Supply 20 Q 2 Q 20 2 Q 18 and P 2 In perfect competition Equilibrium price 2    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Physics
1.2K views

A 10.0kg uniform ladder that is 2.50m long is placed against a smooth (frictionless) vertical wall...

Physics
1.2K views

I have a slater determinant question.Please describe the concept of slater determinant. Describe in detail what...

Basic Math
1.2K views

The objective of generating selective demand occurs in the growth stage of the product life...

Calculus
1.2K views

Point A is shown on the complex plane 5 A 3 2 1 S Imaginary...

Calculus
1.2K views

3 y x 3x 5 Find an equation of all the horizontal tan

Accounting
1.2K views

information 235 10/20 Teglv Pancha Punch 130 and i ng your...

Accounting
1.2K views

Please help me fill out these journal entries ...

Accounting
1.2K views

Urban Life Ltd. sponsors a defined benefit pension plan for its employees. It is now...

Accounting
1.2K views

Suppose that at the beginning of 2021 Jamaal's basis in his S corporation stock is...

Accounting
1.2K views

In what circumstances might you have relevance, but not Representational Faithfulness, or both? Could one...

Accounting
1.2K views

B.20 Which of the following philosophical principles in ethics directs a decision maker to take...

Accounting
1.2K views

Una compaa compr equipo nuevo por $60,000. La empresa pag en efectivo por el equipo....