Calculate the producer surplus associated with the outcomes generated in part b. d. Now calculate the equilibrium price and quantity if the firm charges one price across all consumers. What is the producer surplus associated with this outcome and how does it differ to that calculated in part c?
Q: given by TC = 0.5q? + 5q + 100 where q is the number of unites of X produced by the firm. 1. If P =…
A: Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: All of the following might explain a firm offering quantity discounts except: a. lower costs of…
A: At the marketplace, firm uses various strategies to attract consumers and grow their business.
Q: The daily demand of two firms Firm 1 and Firm 2 producing two products is given by : D1 = 5 - 22P1…
A: Answer a). profit of firm A: n1 = P₁*D₁ -0.5D₁ => 1 = (P₁ -0.5)*(50/9 - 200/9 P₁ + 100/9
Q: Suppose the following data represent the market demand for catfish: Price (per unit) $20 19 18 17…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Demand for a product Z at a price of $p per item is given by D (p) = 250 – 0.1p? – p thousand items…
A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…
Q: 2. Suppose John has the following demand for coffee per day: Cups of Marginal Coffee Value 1 $8 2 $6…
A: Answer; The maximum amount of membership should be 7 dollars
Q: Two different boutique wineries supply two towns: town A and town B. Winery 1 supplies town A and…
A: Given The marginal cost of each winery MC=20 Initially, winery 1 supplies town A having demand…
Q: c) Given the demand function P 35 - Qå and supply function P = 3+ Q3. i) Find the producer's surplus…
A: Demand function: P = 35-Q2 Supply function: P = 3+Q2 We need to first find the equilibrium quantity…
Q: Firm A sells good X. It faces demand q = 40 - 4P, where P is the price of X. What is Firm A's…
A: Revenue is the additional income that firms earn through the sale of their goods and services.
Q: You live in a town with 300 adults and 200 children, and you are thinking about putting on a play to…
A: Introduction Here demand schedule of two type of customer has given: adult and children. Table when…
Q: Price is set in a market by a dominant firm price leader (L = Leader). Total Market Demand is P =…
A: Profit maximization could be a method that companies undergo to ensure that they need the most…
Q: A firm operates in three markets: Nur-Sultan, Karaganda, and Almaty. Each market can be described by…
A: since you have asked a multipart question and according to our policy we can only solve the first 3…
Q: Price is set in a market by a dominant firm price leader (L = Leader). Total Market Demand is P =…
A: Introduction: A dominant firm is one that represents a huge portion of a given market and has a…
Q: sing the price to charge consumers. There are no capacity constraints. Consumers purchase the firm…
A: Under the Bertrand model, firms compete the prices. The price keeps on declining until it becomes…
Q: Lukanga Water has been providing water services in the Central Province for more than 20 years.…
A: Profit maximising level of output for a firm is at the point where marginal revenue (MR) equals…
Q: Price is set in a market by a dominant firm price leader (L = Leader). Total Market Demand is P =…
A: * SOLUTION :-
Q: Alex Potter owns the only well in a town that produces clean drinking water. He faces the following…
A: The firm would maximize the profits at the point, MR = MC where, MR is the Marginal Revenue MC is…
Q: Provide an example where changes in one or more of the non-price factors that influence demand have…
A: The market share of the producers depends on various factors other than price. BRANDING: It…
Q: The Children's Theatre Company in Minneapolis produces high quality theater for kids. Demand for…
A: A monopoly is a point at which one organization and its item rule a whole industry by which there is…
Q: (9) Suppose the market for tennis shoes has one dominant firm and five fringe firms. The market…
A: Marginal cost refers to the cost when an additional unit of a commodity is being produced. For…
Q: please TYPE and EXPLAIN your work. Disney World’s demand curve for rides is P=24-2.4Q, MR=24-4.8Q,…
A: The demand curve shows the relationship between the quantity demanded and the price of a good. The…
Q: Suppose in a perfectly competitive market with demand and supply as follows: 100 D(q) = %3D S(q) =…
A:
Q: a. Suppose 24 firms are in this industry. What is the equation for market supply? QS =
A: The number of units of a good that a producer is willing and able to sell in the market at different…
Q: Assume that a firm faces the following cost curve and demand curves for markets X and Y: TC = 20 +…
A: TC=20+4Q+Q2 Px=100-2Qx Py=76-Qy Firm X Total Revenue : TRx=PxQx TRx=100Qx-2Qx2 Marginal Revenue :…
Q: Complete the following table and identify the profit maximising and output. b. What is true about…
A: Total Revenue = Price X Quantity Marginal Revenue = Change in total revenue when an additional…
Q: Q.Which of the following statements is false? 1.A price maker must lower price to sell an…
A: Different types of market structures can be classified on the basis of the number of buyers and…
Q: Indicate whích of the labeled areas represent consumer surplus derived from the purchase of Sparkle…
A: the monopoly is the sole producer of a good thus having maximum market power hence will act as a…
Q: Price is set in a market by a dominant firm price leader (L = Leader). Total Market Demand is P =…
A: Given:P = 10,000 - 5QT 5QT = 2000 - P QT = 2000 - 0.2P The competitive fringe supply is SF = P =…
Q: The market demand curve is given by P = 40 - 0.2Q. What is the profit-maximizing output? A. Profit…
A: In Economics, Total Revenue is the product of the inverse demand function ,Price (P), and Quantity…
Q: 2) Ann McCutcheon is hired as a consultant to a firm producing ball bearings. This firm sells in two…
A: We have two different markets with the given cost function.
Q: Firms X and Y are competitors. Suppose we have demand curves given by Q, = A-bP,+cP, Qy = F-gPy+…
A: Qx = A-bPx +cPy Qy = F - gPy +hPx
Q: Suppose a competitive market with the inverse demand p=100–2q. The pre-innovation marginal cost is…
A: According to the question given that, market is competitive having demand curve P = 100 - 2q pre…
Q: (9) Suppose the market for tennis shoes has one dominant firm and five fringe firms. The market…
A:
Q: Flag 1. A company faces TC = y2 + 12 and market demand y = 24 – p. a) What is the firm’s profit?,…
A: The total cost function consists of the fixed cost as well as the variable cost. The marginal cost…
Q: Price is set in a market by a dominant firm price leader (L = Leader). Total Market Demand is P =…
A: Given that, Price is set in a market by a dominant firm price leader . We have to find dominant…
Q: Question #5 (b-c) Under pure competition, the supply curve for a certain product is given by: P= Q2…
A: Dear Student, it seems like you have posted multiple questions here and the question in the…
Q: The demand for a new computer game can be modeled by p(x) =43-4 In x, for 0sx S 800, where p(x) is…
A:
Q: Firm 1 is the leader and Firm 2 the follower in the model of price leadership. Thus, Firms 1 and 2…
A: Y = y1 + y2 Market Demand: P = 70 - y1 - y2 Firm 2 (follower firm ) will maximize profit: Firm 2: π2…
Q: (1) Allocative Efficiency associated with competitive equilibrium is a condition where Producer…
A: A perfectly competitive market refers to a market structure that has many small sellers selling…
Q: Compared to a market with competitive firms, monopoly markets... a. charge lower prices. b. sell…
A: A monopoly market is a market having one dominant seller or producer in the whole market with…
Q: If Facebook perfectly price discriminates, what will the consumer surplus be? QUESTION 16 If…
A: Perfect Price discrimination, is the highest level of price discrimination in which each unit of…
Q: (9) Suppose the market for tennis shoes has one dominant firm and five fringe firms. The market…
A: a.Fringe firms marginal cost is:P=MC=20+5qP=20+5q5q=P-20q=P-205Now,There are five Fringe…
Q: American Girl doll has an inverse demand curve of P- 150 0.25Q, where Q measures the quantity of…
A: The firm will maximise profit at a point where marginal revenue is equal to marginal cost. Toh…
Q: Given a qmes 100 and a minimum long-run average total cost of $2. (a) If the quantity demanded at p…
A: qmes = 100 This means at this quantity the cost is minimum and the firms will produce this quantity.…
Q: Calculate the producer surplus associated with the outcomes generated in part b. d. Now calculate…
A: Producer is in equilibrium where marginal cost is equal to marginal revenue . MC = MR . There are…
Q: Given demand equation P=50-2Qd and supply equation P=10+2Qs calculate. (a) consumer surplus (b)…
A: Given: P=50-2Qd P=10+2Qs
Q: Price is set in a market by a dominant firm price leader (L = Leader). Total Market Demand is P =…
A: Given:P = 10,000-5*QT QT= 2,000 - 0.20*PThe dominant firm’s total cost is TCL= 50*QL + 1.5*QL2The…
Solve only c and d
2. There are 2 groups with different
a. Give the inverse demand
b. If marginal cost is flat at $10, calculate the profit-maximizing quantities and prices associated with this market place. Are the prices for each group different? Comment on the outcomes.
c. Calculate the
d. Now calculate the
Step by step
Solved in 3 steps with 3 images
- Only typed answer Each firm in a competitive market has a cost function of C(q) = q − q 2 + q 3 . The market has an unlimited number of potential firms. The market demand function is Q = 24 − P. a. Determine the long-run equilibrium price, the quantity per firm, the market quantity, and the number of the firms. b. How do these values change if a tax of $1 per unit is collected from each firm? c. How would these values change if instead of a tax the government implements a price floor of 30?Two different boutique wineries supply two towns: town A and town B. Winery 1 supplies town A and Winery 2 supplies town B. Both wineries have a constant marginal cost c = 20. Assume that consumers are indifferent between the wines from different wineries and that they purchase wine only in the town they live. Demand for wine in town A is given by pA=40−12qA; the demand for wine in town B is given by pB=70−qB. a) Find the price p1, quantity sold q1, and profit π1 of Winery 1 in town A. b) Find the price p2, quantity sold q2, and profit π2 of Winery 2 in town B. c) Assume that the two wineries decide to merge (i.e. to unite) and become Winery Co. The Winery Co sells wine in both towns at the same price (i.e. the price of wine in town A is the same as the price of wine in town B). The marginal cost is still equal to 20. What is the total demand for wine from the residents of both towns? Find the price pM, quantity sold in each town (qA and qB) and the total profit πM of Winery Co. d)…Suppose anyone with a driver's license is capable of supplying one trip from the airport to the downtown business center on any given day. The long-run supply curve of such trips is horizontal at p = $50, which is the average cost of such trips. Suppose daily demand is Q = 1000 - 10p. Calculate the change in consumer surplus, producer surplus and social welfare if the city government restricts the number of trips to be 300 at maximum by issuing special licenses
- Which of the following is true? [S1] In a strong form efficient market, it is impossible to earn a profit consistently. [S2] In a strong form efficient market, price is equal to value. a. Statement 2 only. b. Neither of Statement 1 nor 2. c. Statement 1 only. d. Both statements 1 and 2.In a given market three firms compete by choosing quantity simultaneously. The demand schedule is this market is P(Q) = 300 – 2Q. All the firms have the same cost function: C(q) = 140q - 100. (i) What is the equilibrium price, the quantity produce by each firm, the profit earned by each firm and the consumer surplus? Carefully explain your derivation and provide reasoning.The market demand curve is given by P = 40 - 0.2Q. What is the profit-maximizing output? A. Profit is maximized at output level, Q*=40. B. Profit is maximized at output level, Q*=100. C. Total revenue is maximized at output, Q*=200. D. Profit is maximized at output level, Q* = 80.
- Solve only c and d 2. There are 2 groups with different demand in a market, as follows: ?!=40−?1 and ?"=100−2?2 a. Give the inverse demand curves and marginal revenue in each of these groups. b. If marginal cost is flat at $10, calculate the profit-maximizing quantities and prices associated with this market place. Are the prices for each group different? Comment on the outcomes. c. Calculate the producer surplus associated with the outcomes generated in part b. d. Now calculate the equilibrium price and quantity if the firm charges one price across all consumers. What is the producer surplus associated with this outcome and how does it differ to that calculated in part c?In a monopoly market, you have an inverse demand function P=a-bQ, where Q is total market production and a and b are positive constants. Assume marginal costs of production are a positive constant c. Obtain the marginal revenue of this firm. Explain why it is different from that of a perfectly competitive firm. Calculate the lump sum tax which would induce this monopoly firm to exit the market. Calculate the incentive this monopoly would have to invest in a process innovation. Assume this monopoly has found a way to divide their consumer base into two identifiable groups. Discuss the impact this would have on the prices consumers pay.Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments, because the quantity of apartments demanded is greater than the quantity supplied at the regulated price. When cities prevent landlords from charging market rents, which of the following are common long-run outcomes? Check all that apply. a. The quantity of available rental housing units falls. b. Nonprice methods of rationing emerge. c. The quality of rental housing units falls. d. Landlords earn lower profits from renting housing units, but the rent charged has no effect on either the quantity or quality of rental units.
- please refer to image provided On the left hand side, the market consists of many perfectly competitive firms. On the right hand side, this market is dominated by a single monopoly firm. How much is the consumer surplus under perfect competition?Take this hypothetical situation: Suppose that the supply side of the market for for electric energy is comprised of two sellers: Seller 1 and Seller 2. Let P be the price of one unit of electric energy, and Q be the quantity of electric energy. Seller 1 owns a hydropower factory with a constant marginal cost of $3 and can produce a maximum of 10 units of electric energy. In addition, the hydropower plant has a requirement of a minimum of 3 units of electric energy. Seller 2 owns a solar factory to produce electric energy. This factory has a constant marginal cost of $5 and can produce a maximum of 5 units of electric energy. With this given information, please sketch the market supply by aggregating the two individual supplies. Please label the graph clearly for slopes, kinks, intercepts, etc.Take this hypothetical situation: Suppose that the supply side of the market for for electric energy is comprised of two sellers: Seller 1 and Seller 2. Let P be the price of one unit of electric energy, and Q be the quantity of electric energy. Seller 1 owns a hydropower factory with a constant marginal cost of $3 and can produce a maximum of 10 units of electric energy. In addition, the hydropower plant has a requirement of a minimum of 3 units of electric energy. Seller 2 owns a solar factory to produce electric energy. This factory has a constant marginal cost of $5 and can produce a maximum of 5 units of electric energy. A) With this given information, please sketch the market supply by aggregating the two individual supplies. Please label the graph clearly for slopes, kinks, intercepts, etc. B) Suppose that the price of geothermal increases. On the graph drawn in part A, show precisely how the supply curve changes. C) Suppose that the price of geothermal increases. In a market…