Biology Forums - Study Force

A monopolist has total cost TC = .1Q2 - 2Q + 100 and marginal cost MC = .2Q - 2 . Market demand is Q = 86 - P, implying that the firm's marginal revenue is MR = 86 - 2Q. Its profit-maximizing output is
 a. 92
  b. 46
  c. 40
  d. 20

QUESTION 2

Consider the same monopoly situation as in the previous question. The deadweight loss associated with this monopoly is
 a. 966
  b. 1,058
  c. 2,484
  d. 3,680

QUESTION 3

Consider the same monopoly situation as in the previous question. The monopoly price is
 a. 8
  b. 46
  c. 54
  d. 92

QUESTION 4

A monopolist with constant average and marginal cost equal to 8 (AC = MC = 8) faces demand Q = 100 - P, implying that its marginal revenue is MR = 100 - 2Q. Its profit maximizing quantity is
 a. 8
  b. 46
  c. 50
  d. 92

QUESTION 5

Suppose a man and a woman are in love and care for the other's happiness as well as their own consumption. Suppose the woman is more selfish than the woman UM = CM1/2 UW1/2 UW = CW2/3 UM1/3 They will maximize the joint happiness (UM + UW) where
 a. CM = 100; CW = 0
  b. CW = 100; CM = 100
  c. 50 < CM < 100; 0 < CW < 50
  d. 50 < CW < 100; 0 < CM < 50

QUESTION 6

Suppose a man and a woman are in love and care for the other's happiness as well as their own consumption. Suppose the man is more selfish than the woman UM = CM2/3 UW1/3 UW = CW1/2 UM1/2 They will maximize the joint happiness (UM + UW) where
 a. CM = 100; CW = 0
  b. CW = 100; CM = 100
  c. 50 < CM < 100; 0 < CW < 50
  d. 50 < CW < 100; 0 < CM < 50

[Answer to ques. #1]  c

[Answer to ques. #2]  b

[Answer to ques. #3]  c

[Answer to ques. #4]  b

[Answer to ques. #5]  d

[Answer to ques. #6]  c

All are answered correctly

Happy to help