ECO 3352 Troy University Demand Equation of P Exercise

Question Description

I’m working on a economics question and need an explanation and answer to help me learn.

1 attachmentsSlide 1 of 1attachment_1attachment_1.slider-slide > img { width: 100%; display: block; }
.slider-slide > img:focus { margin: auto; }

Unformatted Attachment Preview

2.
Suppose a pure monopolist faces the demand equation of P = 200 – 0.75Q. MC = Q + 50.
Solve for Total Revenue.
Total Revenue= P*Q = 200Q – 0.75Q^2
Solve for Marginal Revenue.
MR= d(TR)/ dQ = 200- 1.5Q
Find the profit-maximizing price.
Profit-maximization: Set Q where MR=MC
200-1.5Q= Q+50
Q=60
P= 200-0.75*60= 155
Find the profit-maximizing quantity.
60
Suppose Average Total Cost is $145. How much is the profit/loss?
TC= ATC*Q= 145*60=8700
TR= 200*60- 0.75*60*60= 9300
TR-TC= 600
The profit is 600
Draw a graph showing the demand, the firm’s marginal revenue, its marginal cost, and its
average total cost. Shade in and indicate the profit/loss.

Purchase answer to see full
attachment

Tags:
total revenue

Marginal Revenue

demand equation

Student has agreed that all tutoring, explanations, and answers provided by the tutor will be used to help in the learning process and in accordance with FENTYESSAYS.COM ESSAY’s honor code & terms of service.