I need A Starbucks is one of the largest coffee company in the world, respectively that have substantialsupply-chain relations with the world's major coffee-producing countries. Thus, Starbuckscoffee houses can be considered as one of the dominant monopoly firm in the coffee industryworldwide. Assume Starbucks (as a monopolist firm) faces the demand curve P = 11 - Q fortheir normal coffee product, where P is measured in dollars per unit and Q in thousands ofunits produce. The company (monopolist) has a constant average cost of $6 per unit, whichalso represents the firm's marginal cust (MC).a. Calculate and draw the average revenue (AR) and marginal revenue (MR) curves and theaverage and marginal cost curves (AC and MC). Show your calculations. Draw only ONEdiagram for all the 4 curves that required to represent the firm economic condition forStarbucks coffee company.b. What are the Starbucks profit-maximizing price and quantity as monopolist's? Why?Discuss what is the resulting profit and show your calculation? Explain your answer.Diagram NOT required.c. Let say if the government ageney sets a price ceiling of $7 per unit for Starbucks coffeeproduct. What quantity will be produced, what will the firm's profit be? What happens tothe degree of monopoly power face by Starbucks coffee company? Explain and show yourcaleulation.d. Assume that the local government decided to increase farmers' incomes through policyintervention. Why do price support or acreage-limitation programs cost society more than simplygiving farmers a subsidy? Explain the economic conditions under this situation and draw ONE (1)appropriate diagram to support your answer.e. Discuss THREE (3) sources of monopoly power in telecommunication industry. In youropinion why do some firms have more monopoly power than others? Discuss thisstatements and provide TWO (2) examples. Diagram is NOT required.

TR(Total revenue) is the product of p(price) and q(quantity). MR(marginal revenue) is the slope of…

supply-chain relations with the world's major coffee-producing countries. Thus, Starbucks coffee houses can be considered as one of the dominant monopoly firm in the coffee industry worldwide. Assume Starbucks (as a monopolist firm) faces the demand curve P- 11- Q for their normal coffee product, where P is measured in dollars per unit and Q in thousands of units produce. The company (monopolist) has a constant average cost of $6 per unit, which ulso represents the firm's marginal cost (MC). a. Calculate and draw the average revenue (AR) and marginal revenue (MR) curves and the average and marginal cost curves (AC and MC). Show your calculations. Draw only ONE diagram for all the 4 curves that required to represent the firm economic condition for Starbucks coffee company.

supply-chain relations with the world's major coffee-producing countries. Thus, Starbucks coffee houses can be considered as one of the dominant monopoly firm in the coffee industry worldwide. Assume Starbucks (as a monopolist firm) faces the demand curve P- 11- Q for their normal coffee product, where P is measured in dollars per unit and Q in thousands of units produce. The company (monopolist) has a constant average cost of $6 per unit, which ulso represents the firm's marginal cost (MC). a. Calculate and draw the average revenue (AR) and marginal revenue (MR) curves and the average and marginal cost curves (AC and MC). Show your calculations. Draw only ONE diagram for all the 4 curves that required to represent the firm economic condition for Starbucks coffee company.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter12: Price And Output Determination: Oligopoly

Section: Chapter Questions

Problem 2E

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