Barbara is a producer in a monopoly industry. Her demand curve, total revenue curve, marginal revenue curve, and total cost c

Question

3 years ago

12

Barbara is a producer in a monopoly industry. Her demand curve, total revenue curve, marginal revenue curve, and total cost c

urve are given as follows: Q = 160minus4P TR = 40Qminus0.25Q2 MR = 40minus0.5Q TC = 4Q MC = 4 Refer to Scenario 1. The price of her product will be
A. $32.
B. $4.
C. $42.
D. $22.
E. $72.

Business

1 answer:

maks197457 [2] · Answer 1 · 2022-03-08T12:38:54+03:00

maks197457 [2]3 years ago

5 0

Answer:

D

Explanation:

Profit is Maximize when MR = MC

since MR=40 - 0.5Q

and MC= 4

Therefore:

40-0.5Q = 4

-0.5Q = 4 - 40

-0.5Q= -36

divide through by -0.5

Q = 72

since Q = 72

from Q = 160 - 4p

72 = 160 - 4P

-4p = 72 - 160

-4P = -88

divide through by -4

P = 22

Barbara is a producer in a monopoly industry. Her demand​ curve, total revenue​ curve, marginal revenue​ curve, and total cost c

Barbara is a producer in a monopoly industry. Her demand curve, total revenue curve, marginal revenue curve, and total cost c