Government encouragement of monopoly

In the market for apartment rentals, the demand and supply equations are given by QD = 5,000 – 3P and QS = 5P + 1,000, where P is the price per apartment and Q measures the quantity of apartments. What is the equilibrium quantity?

Suppose a firm’s total cost is given by TC = 210 + 10Q + 3Q2, and its marginal cost is given by MC = 10 + 6Q. It operates in a perfectly competitive market where the price per unit of output is $100. What value of Q maximizes the firm’s profits?

If a firm practices first-degree price discrimination, the firm must

In an indirect price discrimination mechanism, a firm _____.

Owners of a bowling alley have determined that the price elasticity of demand for bowling by seniors is -3.0, while the price elasticity of demand for others is -1.2. The profit-maximizing markups are _____. 

Fixed costs exist only in the ____ run, since firms ____ change the amount of capital employed.

Karam recently opened a bar and grill. Out of the following costs associated with his new business, which is (are) variable costs? (Select all that apply)

Suppose a firm’s total cost is given by TC = 400 + 20Q + 4Q2 and its marginal cost is given by MC = 20 + 8Q. What is the output level that minimizes the average total cost?

A perfectly competitive firm maximizes profit by producing 500 units of output, selling each unit for $5. The firm’s average variable cost is $2, and its average fixed cost is $1. What is the firm’s profit?