A monopoly seller faces a demand curve ?(?) = 120 − 4p. The cost is ?(?) = 2 +Q^2 (a) Write down the profit as a function of quantity and check that the second order condition is satisfied.
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(a) Write down the profit as a function of quantity and check that the second order condition is satisfied.
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- he Pear Computer Company just developed a totally revolutionary new personal computer. Pear estimates that it will take competitors at least two years to produce equivalent products. The demand function for the computer is estimated to be P=2,500−500Q�=2,500−500� where Q� is millions of computers. The marginal (and average variable) cost of producing the computer is $900. Assuming Pear acts as a monopolist in its market, the profit-maximizing price and output levels are per computer and million computers, respectively. The total contribution to profits and fixed costs at this output level is million. Pear Computer is considering an alternative pricing strategy of price skimming. It plans to set the following schedule of prices over the coming two years: Complete the following table by calculating the contribution to profit and overhead for each of the 10 time periods and prices. Time Period Price Quantity Sold Total Contribution ($) (Million)…. A monopolist sells two products Q1 and Q2 for which the demand functions are: Q1 = 100 – 3P1 + 2P2 , Q2 = 75+0.5P1 - P2 and the joint cost function is TC = Q1 2 + 2Q1Q2 + Q2 2 . a. Use Cramer’s rule method to find the prices. Solve for the profit maximizing level of output and the maximum profit. b. Use the Hessian to check the second-order condition.The Pear Computer Company just developed a totally revolutionary new personal computer. Pear estimates that it will take competitors at least two years to produce equivalent products. The demand function for the computer is estimated to be P=2,500-500Q where QQ is millions of computers. The marginal (and average variable) cost of producing the computer is $900. Assuming Pear acts as a monopolist in its market, the profit-maximizing price and output levels are $ per computer and million computers, respectively. The total contribution to profits and fixed costs at this output level is $ million. Time Period Price Units sold Total Contri. 1 2,400 2 2,200 3 2,000 4 1,800 5 1,700 6 1,600 7 1,500 8 1,400 9 1,300 10 1,200 Over the 10 periods, the total contribution to profits and fixed costs from price skimming is $…
- Given the industry demand function X(p) = 100 - 2p, consider the following scenarios: a) The market is a perfectly competitive market. Assume there are identical firms with marginal cost of 12 in this perfectly competitive market. b) The market is dominated by one monopolist with a marginal cost of 12. This monopolist is able to achieve first degree pricing. c) The market is dominated by one monopolist with a marginal cost of 12, but the monopolist is able to achieve only second degree pricing. Assume the menu offers only 2 choices:(Q1= 30; P1= 35), and (Q2= 60; P2= 20). d) The market is dominated by one monopolist with a marginal cost of 12, but the monopolist now uses third degree pricing. Assume the firm can distinguish between low-demand consumers on the weekday and high-demand consumers on the weekend such that Qh = 55 - (1/2)Ph andQl= 45 - (3/2)Pl. The monopolist charges a difference price, Pl and Ph, in each distinct market. e) The market is dominated by one monopolist that is…Based on the best available econometric estimates, the market elasticity of demand for your firm's product is -2. The marginal cost of producing the product is constant at $150, while average total cost at current production levels is $225. Determine your optimal per unit price if: a. you are a monopolist b. you compete against one other firm in a Cournot oligopoly c. you compete against 19 other firms in a Cournot oligopolyBased on the best available econometric estimates, the market elasticity of demand for your firm’s product is −2.5. The marginal cost of producing the product is constant at $225, while average total cost at current production levels is $300.Determine your optimal per unit price if:Instructions: Enter your responses rounded to two decimal places.a. you are a monopolist. $ b. you compete against one other firm in a Cournot oligopoly. $ c. you compete against 19 other firms in a Cournot oligopoly. $ Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- Based on the best available econometric estimates, the market elasticity of demand for your firm’s product is –2. The marginal cost of producing the product is constant at $150, while average total cost at current production levels is $225.Determine your optimal per unit price if:Instructions: Enter your responses rounded to two decimal places.a. You are a monopolist.$ b. You compete against one other firm in a Cournot oligopoly.$ c. You compete against 19 other firms in a Cournot oligopoly.$A monopoly is considering selling several units of a homogeneous product as a single package. A typical consumer’s demand for the product is Qd = 50 - 0.25P, and the marginal cost of production is $120. Determine the optimal number of units to put in a package. How much should the firm charge for this package?Based on the best available econometric estimates, the market elasticity of demand for your firm’s product is -1.5. The marginal cost of producing the product is constant at $150, while average total cost at current production levels is $215.Determine your optimal per unit price if:Instruction: Enter your responses rounded to two decimal places.a. You are a monopolist.$ b. You compete against one other firm in a Cournot oligopoly.$ c. You compete against 19 other firms in a Cournot oligopoly.
- A wholesaler (upstream firm) sells a product to a retailer (downstream firm). Both the wholesaler and the retailer are monopolists. The wholesaler faces a constant marginal cost of $2 and charges the retailer a wholesale price te: The retailer resells the product to final consumers at price P and the wholesale price to is its only cost. The demand for the good is P-12-Q. For your calculations below, assume that both the P and ware measured in dollars per unit. Hint. The retailer's profit function is (P-w)Q. a (8) Find the profit maximizing retail and wholesale prices and quantities b (2). Using your answers in (a), calculate the retailer's and wholesaler's profits Please do fast ASAP fastCurse Purge Plus is a monopolist in the curse removal market They face an inverse demand curve given by P=200-4Q, where Q is the number of curse removals they sell. Their cost function is C(Q)=10+8Q. Find the first-order condition for profit maximization.A local defense contractor is considering the production of fireworks as a way to reduce dependence on the Military. The variable cost per unit is $ 40D. The fixed cost that can be allocated to the production of fireworks is negligible. The price charge per unit will be determined by the equation p= 180-5(D), where D represent demand in unit 1) What is the optimal number of units the defense contractor should produce in order to maximize profit per week? 2) What is the profit if the optimal number of unit produced?