Demand curve and cost function question! URGENT:)

• Mar 24th 2008, 03:41 PM
lemontea
Demand curve and cost function question! URGENT:)
A monopolist faces the following demand curve and cost function

P= 50-0.5Q TC=2Q+1000

Find the follwing equations
Marginal cost:
Marginal Revenue:
Average total cost:

Graph the following on the same graph
• Mar 24th 2008, 07:01 PM
mathceleb
Quote:

Originally Posted by lemontea
A monopolist faces the following demand curve and cost function

P= 50-0.5Q TC=2Q+1000

Find the follwing equations
Marginal cost:
Marginal Revenue:
Average total cost:

Graph the following on the same graph

Marginal cost - Wikipedia, the free encyclopedia

Therefore, MC = DTC/DQ = 2

Marginal Revenue works in a similar fashion, shown here:

Marginal revenue - Wikipedia, the free encyclopedia

Does that get you started?
• Mar 24th 2008, 09:48 PM
CaptainBlack
Quote:

Originally Posted by lemontea
A monopolist faces the following demand curve and cost function

P= 50-0.5Q TC=2Q+1000

Find the follwing equations
Marginal cost:

$Q$: demand, $P$: price, $TC$: total costs

Marginal cost $MC$ is defined as:

$MC=\frac{d}{dQ}TC$

Quote:

Marginal Revenue:
Revenue is demand times price:

$R=Q \times P$

$MR=\frac{d}{dQ}R$

Quote:

Average total cost:
Average cost is:

$AC=TC/Q$

Quote:

Graph the following on the same graph
RonL