MONOPSONY 1. Consider that in year 1, there is a Q = 350 and P = 20 and the value of the purchase for buyers is VT = 5,000 and for year 2 we have that Q = 390, the P = 22 and VT = 4,800. Determine: a.Total spending for both periods. b. VMg and GMg c. Net Profit for both periods. d. Marginal Net Profit. e. There is a profit maximization. VMg = GMg VT (Total value of the purchase) VMg (Marginal Value) GMg (Marginal Spending)
MONOPSONY 1. Consider that in year 1, there is a Q = 350 and P = 20 and the value of the purchase for buyers is VT = 5,000 and for year 2 we have that Q = 390, the P = 22 and VT = 4,800. Determine: a.Total spending for both periods. b. VMg and GMg c. Net Profit for both periods. d. Marginal Net Profit. e. There is a profit maximization. VMg = GMg VT (Total value of the purchase) VMg (Marginal Value) GMg (Marginal Spending)
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
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
Chapter13: Earnings, Productivity, And The Job Market
Section: Chapter Questions
Problem 11CQ
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MONOPSONY
1. Consider that in year 1, there is a Q = 350 and P = 20 and the value of the purchase for buyers is VT = 5,000 and for year 2 we have that Q = 390, the P = 22 and VT = 4,800. Determine:
a.Total spending for both periods.
b. VMg and GMg
c. Net Profit for both periods.
d. Marginal Net Profit.
e. There is a profit maximization. VMg = GMg
VT (Total value of the purchase)
VMg (Marginal Value)
GMg (Marginal Spending)
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