(k) If the total product of labour is given by TP. = 48L + 9L2 -L' and the price of the product produced is $ 10, the maximum wage I would be willing to pay for 4 labour would be $ 260. MPI. True or false, (1) With cartels the greater the difference between price and average cost the greater the incentive to cheat.
Q: A firm produces output, measured by Q, which is sold in a market in which the price P = 20,…
A: Monopsony is a form of market structure which is characterized by an infinite number of sellers and…
Q: Consider a monopoly firm that produces diamonds. This firm sells in two distinct markets, one is…
A: The firm maximizes profit by practicing third degree price discrimination in both markets
Q: a) Maintain the assumption that firms can not price discriminate in the input market and fill in the…
A: Marginal cost: It refers to the cost which the company will have to pay for every additional unit…
Q: Mark if the following statements are true (T) or false (F) (i) If costs are sub-additive and…
A: (i) If costs are sub-additive and concave, the natural monopoly is sustainable A Natural Monopoly is…
Q: QUESTION 4 Consider the following figure: monopsony.PDF. A monopsonist will charge P5 v and purchase…
A: Monopsony refers to a single buyer.
Q: A producer has the possibility of discriminating between the domestic and foreign markets for a…
A: Below is the given values: Q1=21-0.2P1Q2=50-0.4P2Total cost=1000 + 10Q
Q: The market demand for a monopoly is given by P = 90 – 2Q, where Q is the number of the product…
A: Given, P = 90 - 2Q TC = 90 +20Q +0.5Q2 TR= P*Q = (90-2Q)*Q = 90Q - 2Q2 MR = derivative of TR =…
Q: You are the manager of a business that operates as a Monopolist in the output market, and it is a…
A: Given Information 'Production function = Q = 4L P = 100 - 4Q Then Total Revenue = P x Q…
Q: Consider a cost sharing problem with three agents who demand 1, 2 and 3, respectively. In general,…
A: a) Cost of collective demand = cost(D) = (x₁+x2+x3)² Where D = collective demand = x1 + x2 + x3
Q: ppose two firms face market demand of P=150-Q, where Q = q1+ q2. Both ns have the same unit cost of…
A: In a stackelberg model, the leader firm makes first move and is followed by other follower firms.
Q: 6) Netflix is making two versions of its subscription plans (4K and FHD), which target consumers…
A: The profit is maximum where the marginal cost is equal to the marginal revenue for a product. The…
Q: A monopoly is faced with a linear demand, given by P = 120 -2Q. P is the price and Q is the…
A: Welfare in the market = Consumer surplus + Producer surplus
Q: Deprive monopoly demand for an input when several inputs are used in
A: According to the guideline, we cannot solve the research question, but we can provide the sense from…
Q: pure monopsony buyer of a resource, in this case, labor L, has a marginal value curve for labor…
A: Monopsony is a single buyer which maximizes profit by hiring workers where marginal expenditure…
Q: acts as a monopolist in two different markets. When free to do so, it chooses different prices in…
A: Monopoly firm follows the price discrimination strategy to increase profit. Prices are set according…
Q: Suppose there is only one firm (a monopolist) and that all workers have identical wage-safety…
A: Wage = $3.2 Firm's profit = $94 Safety level 4
Q: A firm produces output, measured by Q, which is sold in a market in which the price P = 20,…
A: Monopsony on the other hand, refers to the dominance over a market for goods and services by a…
Q: A monopoly is considering selling several units of a homogeneous product as a single package.…
A: Given . Consumer demand for the product Qd = 120 - 0.25P Marginal Cost of production = $160
Q: Explain how perfect price discrimination could address the free-rider problem? Why then is it not…
A:
Q: If a firm is a monopolist in the output market and a perfectly competitive firm in the labor market,…
A: The marginal revenue productivity theory states that a profit maximizing firm will hire workers up…
Q: A monopoly is considering selling several units of a homogeneous product as a single package. A…
A: Monopoly is a market structure with only one producer and many consumers. Under monopoly the…
Q: Clothing companies like Vineyard Vines offer various student, teacher, military, and essential…
A: the equilibrium condition for price discrimination firm is MR=MC. this condition gives the profit…
Q: Consider a monopoly firm that produces diamonds. This firm sells in two distinct markets, one is…
A: The act of charging different prices in different markets to increase the profits is referred to as…
Q: This is a continuation of the previous question with the same information as before. Price is set…
A: Solution : P = 10,000 - 20QT 20QT = 10,000 - P QT = 500 - 0.05P The competitive fringe supply is…
Q: A producer has the possibility of discriminating between the domestic and foreign market for a…
A:
Q: A company has a monopoly on themed vacations. It has two kinds of clients. After extensive market…
A: Given Marginal Cost (MC) = $16 For Americans Q = 50 - P (The demand function) P = 50 - Q In 2…
Q: Give two examples of price discrimination. In each case, explain why the monopolist chooses to…
A: The price discrimination refers to the pricing practice where the producers sell similar types of…
Q: True/False 1. In a principal-agent relationship between owner and manager with hidden e§ort, the…
A: SUMMARY- Economies of scale - lower average costs and therefore lower prices for shoppers. More…
Q: In many European nations, unionsa. are considered cartels in violation of antitrustlaws.b. conspire…
A: In many European nations, unions are considered cartels in violation of antitrust laws, and they do…
Q: Rod and Todd Flanders have been working jobs in HR that pay $40,000 and $20,000 per year,…
A: The two perspectives of bargaining is - strategic and nonstrategic. In a game dependent on the…
Q: Price ($ per unit output) ME P1 P2 P3 S-AE P4 P5 MV a1 a2 a3 Output Q4 Refer to above Figure. What…
A: The profit-maximizing condition in a monopsonist market is when marginal value is equal to marginal…
Q: 4. A firm produces output, measured by Q, which is sold in a market in which the price P = 20,…
A: We are going to solve for Profit maximization under Monopsonist and Perfectly competitive case to…
Q: d. Suppose economic conditions change in such a way that the demand curve for your company shifts…
A: When average total cost is equal to the price, firm makes zero economic profits. When price is equal…
Q: monopoly is considering selling several units of a homogeneous product as a single package. A…
A: A monopoly is the sole producer of a good thus having maximum market power, hence will acts as a…
Q: Mark if the following statements are true (T) or false (F) (i) If costs are sub-additive and…
A: Note:- Since we can only answer up to three subparts, we'll answer the first one. Please repost the…
Q: explain why the Marginal Rate of Substitution is equal to the price ratio for all goods, and its…
A: You have asked multiple questions. We will answer one question for you. If u want any specific…
Q: A monopoly is considering selling several units of a homogeneous product as a single package. A…
A: a. The firm will maximizes the profit at where price is equal to marginal cost (P=MC). The MC of…
Q: A producer has the possibility of discriminating between the domestic and foreign market for a…
A: Given Domestic demand function: Q1=20-0.2P1 ... (1.1) Foreign demand function:…
Q: Suppose a manufacturer and its retailer face the problem of double marginalization. If the…
A:
Q: 3- Faced with two distinct demand functions Q_{1} = 24 - 0.2P Q_{2} = 10 - 0.05P_{2} Where TC =…
A: Introduction We have given two demand function of a firm where one has price discrimination and…
Q: monopoly is considering selling several units of a homogeneous product as a single package. A…
A: Answer to the question is as follows:
Q: Describe each of the following terms. Q.3.4 Short-run period Q.3.5 Collusion
A: Short run period refers to the duration of time over which one of the factors remains fixed whereas…
Q: The demand for a monopoly's output is p=80-Q. The firm's production function is Q=2L Which of the…
A: The labor demand curve of a firm shows the negative relationship between wage rate and the quantity…
Q: A monopsonist’s products are sold in a perfect competitive market at a price of $6. If the firm’s…
A: In a perfectly competitive market, there is a large number of buyers and sellers. All the sellers…
Q: Q)Firm A and B are Cournot competitors, who produce good x. Both firms have zero cost and demand is…
A: Total cost= 0 Demand function; X=215– P P=215– X where; X= Quantity…
Q: If an industry is monopolized, then Labour Demand will be below the Labour Demand under competition,…
A: Introduction: A monopsony occurs when there is just one buyer, the monopsonist. A monopsony, like a…
Q: A monopoly is considering selling several units of a homogeneous product as a single package.…
A:
Q: rs bargain by telling each newspaper that they're going to reach agreement with the other newspaper,…
A: Total Gain Amount implies, for any fiscal year, the total dollar measure of the Company's…
Step by step
Solved in 2 steps
- Consider Figure 9.1. Assume SFK and Timken merge to become the MVD Company with new cost reductions, indicated by MC1=AC1, which result from changes in work by MVD Company employees that lead to higher worker productivity. Compare to the original competitive equilibrium, the effect of MVD Company's formation on welfare now isA.) a gain of $5.50B.) a gain of $2.50C.) a loss of $5.50D.) no change .6) Faced with 2 distinct functionsQ1 =24- 0.2P1 ; Q2 = 10 – 0.05P2 & TC =35 + 40Q where Q= Q1 + Q2What prices and quantities will the firm set a) with discrimination? b) Without discrimination? Find the profit earned in each case .Use MR=MC method to maximize profit and check second order conditions.If Marginal Revenue (MR) is: d/dq = 2.050 - 18q - 4q2 a. Determine Revenue function b. Determine demand function
- 4, Name three definitional conditions of the market model termed pure monopoly. Explain their major implications for the behavior of the firm. Briefly for managerial economics classA market analysis employed by the “Sad Student Company” reveals that the number oflots of the game named “Handsome Killer: Revenge of the Teacher” ordered by thewholesalers when the game is offered at a price of dollars per lot is given by the formula:p=1500-2.5qa) Find the company’s total, marginal and average revenues b) Find the price and quantity maximizing the total revenue by first expressing therevenue as a function of price rather than of quantityshow the complete solution for Marginal profit = d(Profit)/dQ which is = 1.8Q - 0.12Q2 - 6
- b) As an alternative to the discrimination of third degree prices, those in charge consider a double tranche rate according to which the members can play as many games as they wish at a price of € 20 per game. How much profit will the golf course generate if it charges all players the same annual fee for becoming a member of the club? What if you set a differentiated quota for each type of player? From the point of view of social welfare, which of the two options (same quota or differentiated quotas) would be preferable? Represent graphicallyC2) Company A is the only supplier of glass in Big Apple City used for tall buildings’ exteriors. Its marginal cost of production is cA=1, and it has no other production costs. The demand for such glass in Big Apple city is QD=2-P. Company B in Jersey City produces the same glass and is considering whether to expand to Big Apple city. If it enters, it needs to get a permit to allow it to be a supplier in the Big-Apple city at a cost of L=0.5, which does not vary with quantity of output, and its marginal cost of production is cB=0.5. If it expands to the Big-Apple city, companies A and B both supply to the market, and the market price P satisfies QA+QB=2-P, where QA is company A’s production level and QB is company B’s. a) If company B expands to the Big-Apple city, what is the resulting price in a Nash equilibrium? b) Company B hires a consulting company to advise whether it should expand to the Big-Apple city. If you’re running the consulting company, what is your advice? Explain…C2) Company A is the only supplier of glass in Big Apple City used for tall buildings’ exteriors. Its marginal cost of production is cA=1, and it has no other production costs. The demand for such glass in Big Apple city is QD=2-P. Company B in Jersey City produces the same glass and is considering whether to expand to Big Apple city. If it enters, it needs to get a permit to allow it to be a supplier in the Big-Apple city at a cost of L=0.5, which does not vary with quantity of output, and its marginal cost of production is cB=0.5. If it expands to the Big-Apple city, companies A and B both supply to the market, and the market price P satisfies QA+QB=2-P, where QA is company A’s production level and QB is company B’s. a) If company B expands to the Big-Apple city, what is the resulting price in a Nash equilibrium? b) Company B hires a consulting company to advise whether it should expand to the Big-Apple city. If you’re running the consulting company, what is your advice? Explain…
- A monopoly is considering selling several units of a homogeneous product as a single package. Analysts at your firm have determined that a typical consumer’s demand for the product is Qd = 130 − 0.25P, and the marginal cost of production is $160.a. Determine the optimal number of units to put in a package. units b. How much should the firm charge for this package? $Consider a monopoly that sells a product to consumers with a constant marginal cost of $13. There are two potential consumers. As a prior belief, each consumer thinks that the product is worth either $29 or $19 with equal probability, and he/she learns the true value of the product after trying it out. Each consumer may have a different perception of the value of the product, and these perceptions are independent events. The product is non-durable. Suppose there are two periods and each consumer demands at most one unit of the product in each period. After the first period, a company named InfoteX could conduct an online marketing survey to learn consumers perceptions of the product. By purchasing the survey from InfoteX, the monopolist knows whether a consumer is happy with the product (i.e., he/she thinks the product is worth $29 instead of $19 after trying it out) or not and can offer personalized prices to customers in the second period. Then the monopolist should charge $_______…Assume a monopolist produces rum and knows there are two groups of rum consumers, 1 and 2, with different price elasticities. Group 1 is highly price elastic with E1=-10; Group 2 exhibits a lower price elasticity of E2=-2.5. Assume the company can separate these two groups (e.g., by handing out special ID cards) and can charge two different prices. If P2=$14, how much can it charge to Group 1?