Microeconomics: Theory and Applications with Calculus, 4e

Exercises

All exercises are available on MyEconLab; ${*}^{}=\text{answer}$* = answer appears at the back of this book; $\mathbf{\text{M}}=\mathit{\text{mathematical}}$M = mathematical problem.

1. Monopoly Profit Maximization 

1. 1.1 If the inverse demand function is $p=300-3Q\text{,}$[&p|=|300|-|3Q,&] what is the marginal revenue function? Draw the demand and marginal revenue curves. At what quantities do the demand and marginal revenue lines hit the quantity axis? (Hint: See Solved Problem 11.1 .) M

2. 1.2 If the inverse demand curve a monopoly faces is $p=10Q^{-0.5}\text{,}$[&p|=|10Q^{|minus|0.5},&] what is the firm’s marginal revenue curve? (Hint: See Solved Problem 11.1 .) M

3. 1.3 Given that the inverse demand function is $p(Q)=a-bQ+(c/2)Q^2\text{,}$[&p(Q)|=|a|-|bQ|+|(c/2)Q^{2},&] derive the marginal revenue function. ...