Based on the best available econometric estimates, the market elasticity of demand for your firm's product is -3.0. The marginal cost of producing the product is constant at $150, while average total cost at current production levels is $215. Determine your optimal per unit price if: Instructions: Enter your responses rounded to two decimal places. a. you are a monopolist. 2$ b. you compete against one other firm in a Cournot oligopoly. 24 C. you compete against 19 other firms in a Cournot oligopoly.
Q: Starbucks is one of the largest coffee company in the world, respectively that have substantial…
A: An increase in farmers’ income can be done through price support in the form of floor price where…
Q: The demand function for a monopolist is given by: P1 = 1,250 – 3.5Q and the cost function is given…
A: P1= 1250-3.5Q C(Q)= 1200+1.5Q+0.8Q2
Q: What is the market structure of AVAC? State its characteristics. b. To maximize profit, (i)…
A: Part (a) AVAC has monopoly in producing vaccine as it is the only pharmaceutical firm producing a…
Q: The market for city-centre hotels in Barcelona is characterised by a wide range of establishments.…
A: The firms in the perfectly competitive market structure produce identical goods and every firm in…
Q: A wholesaler (upstream firm) sells a product to a retailer (downstream firm). Both the wholesaler…
A: We have MC of wholesaler = 2 And MC of retailer = W
Q: If entry restrictions are coupled with rules prohibiting price competition, monopoly-level prices…
A: In practice, monopolies are rarely formed as a result of natural resource management. Economies are…
Q: Assume the demand for a new drug Alwayssmile is given for the first 2 years by Year 1: Q1-1600-2P1…
A: Profit explains the financial gain gained when the income earned by a commercial operation increases…
Q: A nightclub owner has both students and other adults as customers. The demand for drinks by typical…
A: First degree price discrimination refers to when the seller maximizes profits by charging every…
Q: Given the industry demand function X(p) = 100 - 2p, consider the following scenarios: a) The…
A: Dear learner you have posted a question with multiple sub parts. As per our policy we will solve…
Q: Which statement is correct? Multiple Choice Competitive firms tend to be more efficient than…
A: A great many people scrutinize imposing business models since they charge too high a cost, yet what…
Q: Dead weight loss occurs in Monopoly market because-[More than 1 correct option] Price charged by a…
A: Note: In the BNED Guidance, only the first question can be answered at a time. Resend the question…
Q: B, and $3 to make the bundle. After some marketing research is conducted, you have the…
A: Price discrimination could be a promoting approach during which a marketer charges varied costs for…
Q: Suppose you are a manager of a County government project that is meant to provide rent-regulated…
A: As we know monopolist earn maximum profit where MC= MR and charge high price and produce less output…
Q: If entry restrictions are coupled with rules prohibiting price competition, monopoly-level prices…
A: Entry restrictions are imposed on new producers in the form of patents, copyrights, licensing, and…
Q: You are a self-employed accountant who owns Budget Tax Prep, which specializes in tax preparation…
A: In a monopolistic competitive market, there are large number of buyers and sellers. Each seller is…
Q: Starbucks is one of the largest coffee company in the world, respectively that have substantial…
A: In the monopoly market structure, the single firm sells the goods in the market. The entire market…
Q: For a cost-effective approach to recycling in an industry, its necessary for firms with low…
A: Recycling costs and rates of cycling are interlinked to each other.
Q: AVAC is the only pharmaceutical firm producing a Vaccine. The Demand Curve for its product is Qd =…
A: If there is only 1 seller in market, it is a monopoly structure, with following characteristics:…
Q: If a competitive industry, serving the same market as the monopolist, has a marginal cost of MC(Q) =…
A: Monopoly: It refers to that market in which the producer can charge any price from any consumer due…
Q: The price elasticity of demand for melocotones is constant and equal to -2. The melocotone market is…
A: Given the elasticity = -2 Marginal cost = $975 Share in production = 70%
Q: The demand function for a monopolist is given by: P1 = 1,250 – 3.5Q and the cost function is given…
A: Given that; Demand function of the monopolist is P=1250-3.5Q .......... (1) Cost function:…
Q: What is the cost-effective solution for abatement of toxins by firms All firms should abate until…
A: Since, the cost effective solution for the abatement of toxins by firms means how the firms adjust…
Q: The Pear Computer Company just developed a totally revolutionary new personal computer. Pear…
A: Hi Student, thanks for posting the question. As per the guideline, we are providing answer for the…
Q: A wholesaler (upstream firm) sells a product to a retailer (downstream firm). Both the wholesaler…
A: In economics, profit maximization is the short run or long run process by which a firm may determine…
Q: If the government imposes an MC-pricing scheme on the natural monopolist, the government may need to…
A: In different types of market, cost and revenue functions are different based on market condition and…
Q: supply-chain relations with the world's major coffee-producing countries. Thus, Starbucks coffee…
A: TR(Total revenue) is the product of p(price) and q(quantity). MR(marginal revenue) is the slope of…
Q: A monopoly drug company sells its product in two countries, where it faces the following linear…
A: Introduction Data of a monopoly drug company has given. Company sells their product in two countries…
Q: You are an online seller of a product competing in a monopolistic competition type of market. Hence,…
A: A monopolistic competitive market is one where there are large number of buyers and sellers and each…
Q: Suppose that a monopolist sells its product in two countries; Japan and Canada. The monopolist’s…
A: Given, Marginal cost of monopolist firm (MC) = $60 Total fixed cost (TFC) = $100 Direct market…
Q: Consider a market with 190 consumers. Of these, 90 of them have individual (inverse) demands given…
A: (a) Aggregate demand refers to the sum total of demand of all individual. It is provided that an…
Q: Southern California Edison is a profit-maximizing monopolist that exercises monopoly power in its…
A: "A monopoly firm is a single seller of the commodity or service. This firm can influence the market…
Q: XYZ company uses a technology for producing its good. This enables the firm to meet the entire…
A: A monopoly is the sole producer of the good in the market, thus having the maximum market power.…
Q: A wholesaler (upstream firm) sells a product to a retailer (downstream firm). Both the wholesaler…
A: Profit maximization is a system enterprise corporations go through to make certain the fine output…
Q: There are 38 nearly identical ABC stores within a one-mile radius in Waikiki. The combined size of…
A: a. In the case of the ABC firm, the firm has 38 identical stores in a close radius and this allows…
Q: Duolingo is a widely used foreign language app, with 300 million users in 2018. While there is a…
A: Duolingo is just another app like many other apps in the digital world. There are now different apps…
Q: Based on the best available econometric estimates, the market elasticity of demand for your firm's…
A: According to the given information, the elasticity of demand (Ed) is -3, marginal cost (MC) is $225…
Q: Plaex Building Systems Inc., a startup firm based in Hampstead, New Brunswick, is a monopolist…
A: The formula is:TR=P*QTR(9)=9*50=450Also, TR=TR(n-1)+MR(n)TR(10)=450+30=480
Q: A monopolist sells 15 holiday greeting cards for $5.00 apiece. If the monopolist desires to sell a…
A: Answer; The marginal revenue from selling the additional card is $3.40
Q: Assume a single-price monopolist has an inverse market demand curve given by P(Q)=300-0.5Q, and has…
A: P(Q)=300-0.5Q Q = 600 - 2P C(Q)=125+20Q+0.5Q2. MC = dC/dQ MC = 20 + Q Quantity = 140 units Economic…
Q: A software firm can offer a high-feature version of its software or a stripped-down low-feature…
A: Production cost is the overall cost involved in the production activities of a firm.
Q: Suppose demand and supply curves for you company’s product are given by: QD = 10 -XP QS =5 +YP…
A: Given information Demand curve QD = 10 -XP Supply curve QS =5 +YP Value of X should be [0.1 to 3]…
Q: A firm is a profit-maximizing monopolist in the market of a patented computer software. As an…
A: At profit-maximizing quantity, marginal revenue is equal to marginal cost.
Q: Market demand for the nuclear substance pluranium is given below, along with the TR for the given…
A: Marginal revenue is the additional revenue earned with an additional unit sold. Marginal revenue =…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- 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 $125, while average total cost at current production levels is $190.Determine your optimal per unit price if:Instruction: Enter your responses rounded to two decimal places.a. You are a monopolist.$ b. You compete against one other firm in a Cournot oligopoly.$ c. You compete against 19 other firms in a Cournot oligopoly.$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.$Based 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 −3. The marginal cost of producing the product is constant at $100, while average total cost at current production levels is $175.Determine your optimal per unit price if:Instructions: Enter your responses rounded to two decimal places.a. you are a monopolist.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)…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 $…
- Suppose 4Sisters is a patented vaccine. Her producer is facing a linear demand function for 4Sisters. She manufactures at a constant marginal cost of $20. Reports indicate that she produces 12,000 units of vaccine. She charges a unit price of $400. She is making a positive economic profit of $1,500,000. Draw a well-labelled diagram to indicate the output decision, pricing decision, economic profit, and the resultant deadweight loss in the market for 4Sisters. Indicate key figures with reference to the above given information.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 fastA decorator, who is a monopolist, makes two types of specialty picture frames. From experience, the decorator has determined that if x frames of the first type and y frames of the second type are made and put on sale in a showroom, they can be sold for (100 - 2x) dollars and (120 - 3y) dollars each, respectively. The total cost of constructing these frames is (12x + 12y + 4xy) dollars. How many frames of each type should be produced to realize the maximum profit. and what is the maximum profit? Make sure to verify that this is indeed a maximum.
- Recently, the major firms in the United States cigarette industry joined with the government in a settlement of liability claims. Under the tentative agreement, the industry would curb advertising and pay the equivalent of about $15 billion per year (for smoking-related state Medicaid expenses) in exchange for protection against smoker lawsuits.a) Before the settlement, a leading cigarette manufacturer estimated its marginal cost at $1.00 per pack and its elasticity of demand at -2. What is its optimal price? The firm’s share of the industry payment (based on its historic market share) will raise its average total cost per pack by $.60. What effect will this have on its optimal price?b) A marketing manager suggests that the firm should offer price discounts to the company’s long-term, older, most-loyal (addicted?) customers. Do you agree? Explain carefully.c) In the past, anti-smoking information campaigns have had some limited success in reducing smoking. What price reaction (if any)…Baker Enterprises operates a midsized company that specializes in the production of a unique type of memory chip. It is currently the only firm in the market, and it earns $10 million per year by charging the monopoly price of $115 per chip. Baker is concerned that a new firm might soon attempt to clone its product. If successful, this would reduce Baker’s profit to $4 million per year. Estimates indicate that, if Baker increases its output to 280,000 units (which would lower its price to $100 per chip), the entrant will stay out of the market and Baker will earn profits of $8 million per year for the indefinite future. 1. What must Baker do to credibly deter entry by limit pricing? 2. Does it make sense for Baker to limit price if the interest rate is 10 percent?A cruise ship company offers two packages to its clients: an “economy” package and a “deluxe” package with more amenities to its higher-paying customers. The company estimates that its customers have the following demand functions: Economy package: Q(E) = 20,000 - 10PE Deluxe package: Q(D) = 5900 - 1.5PD The costs for the two services (as a function of the number of passengers) are: Economy passenger: C(QE) = 5000 + 100QE + 0.1Q^2E Deluxe passenger: C(QD) = 5000 + 200QD + 6Q^2D What prices should the company set for the economy and deluxe packages? What are the number of passengers that the ship will have in each package, and how much profit does the company make per cruise? Now assume the ship has a maximum capacity of 4,000 people. How many spaces should be arranged for deluxe passengers and how many for economy? What prices should the company set for the two packages? What is the profit for the company now?