Suppose the inverse demand curve on ore is given by P = 83 - 0.00 Q. Ore can be either mined or obtained through a recycling program. The marginal cost of mining is MC1 = 6 q1. The marginal cost of obtaining ore through recycling is MC2 = 15 + 4 q2. What percent of total demand is satisfied by recycled ore (express your answer in percentage, i.e., if the

Suppose the inverse demand curve on ore is given by P = 83 - 0.00 Q. Ore can be either mined or obtained through a recycling program. The marginal cost of mining is MC1 = 6 q1. The marginal cost of obtaining ore through recycling is MC2 = 15 + 4 q2. What percent of total demand is satisfied by recycled ore (express your answer in percentage, i.e., if the

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter28: Antitrust And Regulation

Section: Chapter Questions

Problem 7E

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Suppose the inverse demand curve on ore is given by P = 96 - 0.72 Q. Ore can be either mined or obtained through a recycling program. The marginal cost of mining is MC1 = 7 q1. The marginal cost of obtaining ore through recycling is MC2 = 18 + 4 q2. What percent of total demand is satisfied by recycled ore (express your answer in percentage, i.e., if the answer is 45.34% then enter 45.34)?
Suppose the inverse demand curve on ore is given by P = X - 0.88 Q. Ore can be either mined or obtained through a recycling program. The marginal cost of mining is MC1 = 8 q1. The marginal cost of obtaining ore through recycling is MC2 = 61 + 4 q2. What should be a maximum value of X so that recycling is NOT cost-effective?
Apparel manufacturer Nike produces high-end and low-end versions of their running shirts. They estimate that the demands for their products are given by: High-end shirts: P = 130 - 2QH , andLow-end shirts: P = 80 - QL, where Q is measured in 1000 shirts, "H" denotes High-end and "L" denotes Low-end Both types of shirts are produced on the same production line in the same facility, so the marginal cost of producing and selling both types of shirts is constant at $30. Supposing that (i) the two demands are independent and (ii) Nike can produce and market the shirts such that the high- and low-end markets are successfully segmented, what are the profit-maximizing prices Nike would charge for each version?Answer Options:a) by the midpoint rule, PH = $65 and Pl = $40b) PH = $80 and PL = $55c) Nike will set price equal to marginal cost for both versionsd) PH = $130 and PL = $80
The per-week (inverse) demand for use of the Øresund Bridge between Denmark and Sweden is P = 13 − 0.15Q during peak traffic periods and P = 10 − 0.1Q during off-peak hours, where Q is the number of cars crossing the bridge in thousands and P is the toll in euros. If the marginal cost of using the bridge is MC = 5 + 0.2Q, what is the optimal peak load toll and off-peak load toll for crossing the bridge?
Consider a nonrenewable resource that can be consumed either today (period 1) or tomorrow (period 2) and has a finite supply of 15 units. Assume the inverse demand for the resource in both periods is: P_1 = 100 - 5Q_1 P_2 = 100 - 5Q_2 Assume the marginal cost of extracting the resource is constant at $25 and the social discount rate is 10 percent (r = .10). If the social discount rate is decreased to 5% (r = .05), how much less of the resource would be consumed in the first period, assuming a dynamically efficient allocation? Please report your answer out to at least two digits (e.g., 3.24). Hint: Solve for the efficient allocation of the resource at r = .1 and then at r = .05. The difference in period one consumption is your answer.
A private golf club has two types of members. Serious golfers each have the demand curve Q = 250 - 10P, where Q represents the number of rounds played per year and P is the per- round price. Casual golfers have the demand curve Q = 100 - 10P. The club has 5 serious and 60 casual golfing members and faces a constant marginal cost and average cost of $ 5 per round played by either type of member. The club cannot distinguish high demanders from low demanders but is considering deploying a 2-part tariff pricing system? Specifically, the club is considering a per-unit price of $5 and a per-unit price of $6. What should they do and what are the profits they will earn? Be very clear in how you arrive at your answer.
Suppose both cooperatives are price-takers; with PG=12 and PF =10 being the market prices of gold and fish respectively. The cost of producing G units of gold is cg(G,x)=G2+(x−4)2; where x is the quantity of mercury effluent discharged into the dam. The cost of producing F units of fish is cF(F,x)= F2 + xF ; where cF(F,x) is an increasing function of x. a) Determine the profit maximizing level of gold output, profit and level of mercury effluent discharged into the dam. Comment and explain your results. b) What is the fishing cooperative’s profit maximizing level of fish output and profit? Explain your results. c) Suppose the two cooperatives were merged to operate as a single firm; determine the socially optimal level of gold and fish output, mercury effluent and profit. Explain, comment on and contrast your results with those obtained in a and b above. d) Suppose property rights to the dam water are created and assigned to the fishing cooperative. Does this induce efficiency and…
A travel agency identifies two customer segments for a cruise ship. The demand curve for customers that are less price-sensitive is D1=1000-2P1. The demand curve for customers that are more price-sensitive is D2=1000-3P2. The cost of maintaining each cabin is $50. If one single price is charged, what is the price to maximize the profit? What is the profit? If the differential prices are charged to each customer segment, what is the price for each customer segment respectively? What is the total profit? What is the profit increase by charging different prices to each customer segment compared with one single price?
The FIA Formula 1 World Championship to be held during the 2021 Mexico City Grand Prix has a total cost function equal to CT = Q33 + Q2 + 125Q and an inverse demand function of P = 200−2Q. Now suppose there is a new company managing this event, so the total cost function becomes CT = 4Q. This new company intends to sell at two different prices depending on the place that the spectators occupy at the Hermanos Rodríguez Autodrome. For the Red Zone Boxes. The estimated demand will be q1 = 32−12p1 and for the Green Zone Boxes It will be q2 = 42 − p2. The number of tickets sold for the Red Zone and Green Zone will be: 15; 84 23; 16 15; 19 33; 45
The demand function for a certain model of Blu-ray player is given by p = 600 0.5x + 2 where p is the unit price in dollars and x (in units of a thousand) is the quantity demanded per week. What is the consumers' surplus if the selling price is set at $200/unit? (Round your answer to the nearest dollar.)
Problem # 1 You are the marketing manager of a firm that produces Titanium and sells this metal to two distinct kinds of customers: aircraft producers and golf club manufacturers. Demand for Titanium by these two market segments is quite different, as described by the respective price equations: PA = 10 - QA./600 and PG = 12 - QG./100, where annual quantities are in thousands of pounds and prices are in dollars. Your firm estimates the marginal cost of titanium production at $4 per pound. a) What is the optimal price and quantity for the aircraft segment? b) What is the optimal price and quantity for the golf segment?
You are an executive for Super Computer, Inc. (SC), which rents out super computers. SC receives a fixed rental payment per time period in exchange for the right to unlimited computing at a rate of P cents per second. SC has two types of potential customers of equal number—10 businesses and 10 academic institutions. Each business customer has the demand function: Q=14−P, where Q is in millions of seconds per month; each academic institution has the demand: Q=10−P. The marginal cost to SC of additional computing is 2 cents per second, regardless of volume. a. Suppose that you could separate business and academic customers. What rental fee and usage fee would you charge each group? What would be your profits? (Round all answers to the nearest integer) For business users, the rental fee would be$720,000per month and the usage fee is 2 cents per second. For academic institutions, the rental fee would be $320,000 per month and the usage fee is 2 cents per second.…