Note : do not copy from other source please. Answer should be unique A monopoly manufacturer sells its good x to a monopoly retailer at the per-unit price k. Thegood from the manufacturer is the only input the retailer needs. Thus, the retailer's productionfunction is y=X, where y is the quantity the retailer sells to the consumers and x is the quantitythe retailer buys from the manufacturer. The demand from the consumers to the retailer isy=16-2p, where p is the per-unit price the retailer charges consumers. Assume themanufacture produces at a constant average variable cost 2. What is the ratio x/Xmergebetween the quantity x the consumers end up consuming when manufacturer and retailerremain separate with the quantity Xmerge the consumers would consume if the two firmsmerged?O a. None of the other answers.O b. 2O c. 1/3O d. 1O e. 1/2

A form of market in which a single seller sells a particular good or service in the market is…

Answered: None of the other answers.

Business

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None of the other answers.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Note : do not copy from other source please. Answer should be unique

A monopoly manufacturer sells its good x to a monopoly retailer at the per-unit price k. The
good from the manufacturer is the only input the retailer needs. Thus, the retailer's production
function is y=X, where y is the quantity the retailer sells to the consumers and x is the quantity
the retailer buys from the manufacturer. The demand from the consumers to the retailer is
y=16-2p, where p is the per-unit price the retailer charges consumers. Assume the
manufacture produces at a constant average variable cost 2. What is the ratio x/Xmerge
between the quantity x the consumers end up consuming when manufacturer and retailer
remain separate with the quantity Xmerge the consumers would consume if the two firms
merged?
O a. None of the other answers.
O b. 2
O c. 1/3
O d. 1
O e. 1/2

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