58 943
Assignments Done
Successfully Done
In March 2018
Your physics homework can be a real challenge, and the due date can be really close — feel free to use our assistance and get the desired result.
Be sure that math assignments completed by our experts will be error-free and done according to your instructions specified in the submitted order form.
Our experts will gladly share their knowledge and help you with programming homework. Keep up with the world’s newest programming trends.

Answer on Microeconomics Question for Manisha

Question #41650
Bringing Up Baby has a monopoly in the production of step-by-step manuals for child rearing. Its total cost of producing manuals is given by TC = 12.5Q, and the demand for manuals is given by the non-linear demand, Q = 25,000P –2.
Calculate the profit maximizing price and quantity of manuals
Expert's answer
TC = 12.5Q, Q = 25,000/P^2, P = (25,000/Q)^0.5
Profit maximizing quantity of manuals can be found in the point, where marginal revenue equals marginal cost (MR = MC) and the price can be found from the demand curve at this quantity.
MC = TC' = 12.5
MR = TR' = (P*Q)' = ((25,000/Q)^0.5*Q)' = (158.11Q^0.5)' = 79.06/Q^0.5
MR = MC, so:
79.06/Q^0.5 = 12.5
Q = (79.06/12.5)^2 = 40 units - profit-maximizing quantity
P = (25,000/40)^0.5 = $25 - profit-maximizing price.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!


No comments. Be first!

Leave a comment

Ask Your question