Ask Question
14 May, 23:48

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

+2
Answers (1)
  1. 15 May, 00:35
    0
    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
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Barbara is a producer in a monopoly industry. Her demand curve, total revenue curve, marginal revenue curve, and total cost curve are given ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers