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RSB [31]
3 years ago
13

The inverse demand curve for a monopolist changes from P = 100 – 2Q to P = 120 – 2Q, while the marginal cost of production remai

ns unchanged at a constant $20. After the change in the demand curve, the profit-maximizing price rises from _____, and the profit-maximizing output rises from _____. $40 to $60; 20 units to 30 units $60 to $70; 20 units to 25 units $10 to $20; 100 units to 120 units $50 to $60; 10 units to 12 units.
Business
1 answer:
svetoff [14.1K]3 years ago
5 0

Answer:

$60 to $70; 20 units to 25 units

Explanation:

The production point for the monopolist is where the marginal revenue is equal to the marginal cost,

For first demand curve,

P = 100 - 2Q

MR = 100 - 4Q,  the MR curve is double sloped than the demand curve

MC = 20

 Now, Equating Marginal revenue with marginal cost,

100 - 4Q = 20

4Q = 80

Q = 20

P = 100 - (2 × 20)

  = 60

For second demand curve,

P = 120 - 2Q

MR = 120 - 4Q

MC = 20

Now, Equating Marginal revenue with marginal cost,

120 - 4Q = 20

4Q = 100

Q = 25

P = 120 - (2 × 25)

  = 70

So, the quantity increases from 20 units to 25 units and the price increases from $60 to $70.

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8 0
3 years ago
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Answer: Integrity and ethical values

Explanation:

 The integrity and the ethical values are the practices in an organization that helps in making various types of effective decisions on the basis of the given situation in an organization.

The integrity is one of the type of ethical and the moral principle that help in taking right decisions with honesty.

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 Therefore, The given answer is correct.

5 0
3 years ago
When positioning products relative to competitors' offerings, firms typically are most successful when they focus on opportuniti
madam [21]

Answer:

A) that build on their strengths relative to those of their competitors.

Explanation:

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So according to the given situation, the option A is most appropriate as it fits to the current situation

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Several years ago, Junior acquired a home that he vacationed in part of the time and rented out part of the time. During the cur
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1) 19 days

2) 109 days

Explanation:

1. Days of personal use = days in which he stayed in the house = 19

2. Days of rental use = actual days which was played for out days for elligible rent.

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