5 Consider the market represented by the figure to the right. Supposethis market has one firm.100.00-If the firm can only charge a single price, what is this firm's profits(when maximizing profits)? The figure to the right asumes the firmhas no fixed costs.90.00-B0 0070.00-The firm earns profits of $ (Enter a numeric response usingrounded to two decimal places.)60.00-50.00-%2440.00-30.00-20.00-MGATC10.00-MR0.0010 20 3040 50 6070 8090 100Quantity$per unit

In a monopoly, there is a single seller producing unique product. Marginal revenue lies below the…

Consider the market represented by the figure to the right. Suppose his market has one firm. 100.00- the firm can only charge a single price, what is this firm's profits 90.00- when maximizing profits)? The figure to the right asumes the firm as no fixed costs. 80 00- 70.00- he firm earns profits of $(Enter a numeric response using punded to two decimal places.) 60.00- 50.00- %24 40.00- 30.00- 20.00- 10.00- MR 0.00- 10 20 30 40 50 60 70 80 Quantity S per unit

Consider the market represented by the figure to the right. Suppose his market has one firm. 100.00- the firm can only charge a single price, what is this firm's profits 90.00- when maximizing profits)? The figure to the right asumes the firm as no fixed costs. 80 00- 70.00- he firm earns profits of $(Enter a numeric response using punded to two decimal places.) 60.00- 50.00- %24 40.00- 30.00- 20.00- 10.00- MR 0.00- 10 20 30 40 50 60 70 80 Quantity S per unit

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter24: Price-searcher Markets With High Entry Barriers

Section: Chapter Questions

Problem 7CQ

See similar textbooks

Similar questions

When the number of competing firms is small in a market, is this market necessarily different from a perfectly competitive market in terms of market power and efficiency? Develop your in-depth analysis and argument on the basis of relevant economic theory or models. Also discuss and explain how market power can empirically and practically (from a competition policy point of view) be assessed.
We want to model the oil markets of the 19th century. And let the inverse demand for oil be P = 300 - 2Q, and the marginal cost of producing oil be MC = Q. Standard Oil, during the second half of the 19th century, can be modeled as a monopsony. If we assume the oil market is a monopsony, what is the quantity produced in equilibrium? Give the exact value up to two sig figs after the decimal point.
Suppose that there are two types of firms in a perfectly competitive market. Firms of type A have costs given by CA(q) = 30q2 + 10q. Firms of type B have costs given by CB(q) = 50q2 + 10. ( dCA dq = 60q + 10 and dCB dq = 100q). There are 60 firms of type A and 100 firms of type B. For A, Qs=P-10 For B, Qs=P What is the range of prices in which some firms produce but others do not? Are there prices at which no firms produce? Why
Figure 14-4 In the following figure, graph (a) depicts the linear marginal cost (MC) of a firm in a competitive market, and graph (b) depicts the linear market supply curve for a market with a fixed number of identical firms. Graph (a): Firm Graph (b): Market Refer to Figure 14 -4. If at a market price of $1.75,52,500 units of output are supplied to this market, how many identical firms are participating in this market? 250 75 100 300 Please give me correct answer with Calculation and full explanation; otherwise, i give multiple downvote
Asap Plz Suppose that a firm with market power can perfectly price-discriminate and faces the demand function q = 400- 4P. The firm's marginal costs are given by MC(q) = 2q +0.12q 2. If the firm cannot price-discriminate, the profit-maximizing level of output is 20.27, and the optimal price is $94.9325 Identify consumer surplus and producer surplus in the market when the firm cannot price discriminate, assuming that the firm maximizes profits. Calculate the deadweight loss from market power. Round your answers to two decimal places.consumer surplus: $______producer surplus: $________dead weight loss: $_____
The graph below shows the Market conditions of Honey’s Laundry service, which is the only laundry in Arizon Residential Area. Considering the shop as a Monopoly market, answer the following questions: (a)In order to maximize profit, how many clothes does the shop clean?[Answer in numerical value only without any unit] (b)If the opening of five new laundries turns it into a perfectly competitive market, what should be the price Sunny’s laundry be charging now?[Answer in numerical value only without any unit] (c)Compute the change in total revenue between part a and part b.[Answer in numerical value only without any unit] Note: Bartleby does not accept more than 3 sub-parts, and here are no more than 3. Please solve all parts to get a 'like'. Thanks
How do firms that have a monopoly and firms under perfect competition make similarproduction choices?
I alrready got the first half answered, I need the second half. JointJuice produces a prepackaged joint support supplement for relief of joint pain with 180 tablets per bottle and operates in a perfectly competitive market. Basically, all the firms in this competitive market have technologies (production and cost conditions) that are the same as JointJuice’s. Suppose JointJuice’s total cost function is given by the following where q is JointJuice’s quantity of packages per day: C(q) = 250 + 6q + 0.1q^2 The market demand function for the output in this market is given by: Q = 1848 - 2P If there are 20 identical firms in this industry, find the market equilibrium price for the prepackaged supplements. Calculate JointJuice’s optimal output level and profits given the market price for the product. If JointJuice is typical of the firms in this industry calculate the firm’s long-run equilibrium output, price, and profit level. Suppose the situation changes. JointJuice has its plant in…
Are tramp shipping and liner shipping competitive markets? Evaluate separately according to the four conditions of competitive market.
The table shows the demand curve for monster trucks. There are two monster truck producers. For simplicity, assume that the cost of producing a monster truck is zero. (AC=0AC=0, FC=0FC=0) Q demanded Price 11 $18$18 22 $16$16 33 $14$14 44 $12$12 55 $10$10 66 $9$9 77 $7$7 88 $6$6 99 $5$5 Assume the two producers initially collude to maximize profits, splitting production and profits evenly. What price will they charge? $ What is the total quantity produced? monster trucksmonster trucks What are the profits for each firm? $ If one of the producers produces an extra unit to get higher profits, what is the new market price? $ What are the profits for this firm when it breaks the agreement? $ What are the other firm's profits after the agreement is broken?
Suppose the market demand for a homogeneous product is given by Q = a - bP, where a and b are positive constants. The product is supplied by a dominant firm with a constant marginal cost c > 0 and n competitive fringe firms, each of which has a cost function ci(qi) = (qi^2)/(2ki) for i = 1, ... , n, where ki > 0 is a parameter. Suppose the dominant firm moves first by setting a price P, followed by competitive fringe rms setting their quantities, taking the price as given. a). Compute the equilibrium price and quantity level for each firm. b). How does the presence of competitive fringe firms affect the equilibrium price, as compared to the monopoly price by the dominant firm?
Suppose that the industry demand curve is given by the following quantity demanded = 100 – 0.5 output. In equilibrium, the market price is equal to 6 pesos per unit. q TR MR TFC TVC TC AC AVC AFC MC Profits 0 10 1 5 2 3 3 2 4 1 5 2 6 3 7 4 8 5 9 6 10 7 11 8 Draw the average cost, average variable cost, marginal cost and marginal revenue curves. Clearly indicate the profit maximizing level of output as well as the areas corresponding to total cost, total…