Demand curve and cost function question! URGENT:)

**lemontea** · March 24th 2008, 02:41 PM

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

**mathceleb** · March 24th 2008, 06:01 PM

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?

**CaptainBlack** · March 24th 2008, 08:48 PM

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:

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

Marginal Revenue:

Revenue is demand times price:

$R=Q \times P$

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

Average total cost:

Average cost is:

$AC=TC/Q$

Graph the following on the same graph

RonL

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