The market inverse demand curve for thrust bearings is P = 15 - 1.5Q, where Q is measured in hundreds of bearings per day and P is the price per bearing. The marginal cost is $3. Suppose two firms, which are Bertrand competitors, produce identical thrust bearings for this market. If this market were monopolized, the market quantity would be 600 200 400 800
Q: Price and cost (dollars per pound of steak) 20.00 18.00 16.00 S=MC 14.00 12.00 10.00 8.00 6.00 4.00…
A: A) in perfect competitive market:- 1) in perfect competitive market, there are many number of…
Q: You deposit $100 today, $200 one year from now, and $300 three years from now. How much money will…
A: Cash flow refers to the quantity of cash or cash-equivalent that a corporation gets or expends as…
Q: 1. During the most recent financial crisis, the Fed conducted large open market operations. The…
A: The monetary policy is operated by the central bank to produce the desirable and positive impacts in…
Q: You own a 5-year bond that has a face value of $1000 and pays 10% interest each year. Two years…
A: Answers ace Value of bond=F=$1000 Annual Interest=1000*10%=$100 Time left to maturity=n=5-2=3…
Q: which of the following is not a characteristic of nonverbal communication, a) its ambiguous b) it…
A: Nonverbal communication is the process by which people communicate information about their feelings,…
Q: Consider the following game. There are two players: an incumbent (denoted by I) and a potential…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: The table shows an indifference schedule for several combinations of X and Y. Combination Quantity…
A: Bundle ( x,y ) At C is (12,3) At d is (10,4)
Q: Suppose the government has determined that the socially optimal quantity of chemical pollution is…
A: Given:- Social optimal quantity=120 million ton Price and Quantity demand shown in graph=$8 and 180…
Q: A cake valued at $40 is divided among five players (P1, P2, P3, P4, P5) using the last diminisher…
A: Given; Value of cake= $40 Player 2 Player 3 Player 4 Player5 Value of current C-piece $5.50…
Q: From 1974 - 1995, the average growth rate in GDP per hour worked in the United States was A. 2.6%.…
A: The average annualized return of an investment, portfolio, asset, or cash flow over time is known as…
Q: The distinctive way of life allegedly developed in urban areas is referred to as __________.
A: When a large proportion of world's population lives in urban areas then it is referred to as…
Q: Suppose you are talking with your friend about agricultural trade. She say n’t understand why Canada…
A: Absolute Advantage: The absolute advantage arises when a country produces more goods from the same…
Q: Consider the following sequential strategic situation, called the centipede game. The game has 100…
A: Backward Induction is defined as a technique which is used to determine the equilibrium outcome of…
Q: Suppose a firm wants to produce 50 units of output at minimum cost and it has three factories with…
A: Perfect Competition refers to the type of market where there is a large number of firms that produce…
Q: Under a marginal cost pricing rule, a natural monopoly makes zero economic profit incurs an economic…
A: For a natural monopoly we have downward sloping Average cost and when average cost is falling, AC is…
Q: Suppose we have a small open economy model with neatral money. (ch17) The monetary agency increases…
A: Money Neutrality refers to the phenomena that the change in money supply impacts price levels in the…
Q: 5. The market demand for super-sticky glue is Q = 240 – 6P and the market supply is Q=-60 + 4P.…
A:
Q: Calculate the four-firm concentration ratio and the HHI. What is the market structure of the…
A: CR4 is the sum of top 4 firms market share HHI is the sum of square of market share of all the firms…
Q: Find the consumer's and producer's surplus if for a product D(x) = 16 0.006x and S(r) only final…
A:
Q: National Public Radio (NPR) is a public good. The cost (supply) of each "unit" of NPR is P=2.…
A:
Q: F3
A: The type of market here in which batteries are produced is an Oligopoly market. The share of one…
Q: Assume the following functions are for the goods market of a hypothetical economy: (1) I = 150 -…
A: IS curve shows the goods market equilibrium. It shows the interest rate levels at which investment…
Q: Next question Price and cost (dollars per client) 100.00 90.00 MC 80.00 ATC 70.00 60.00 50.00 40.00…
A: In the short run, a monopolistic competitive market is the same as a monopoly market. Under the…
Q: The cross-price elasticity of demand between movie tickets and movie theater popcorn is estimated to…
A: Cross price elasticity measures how quantity demanded of one good changes when price of other good…
Q: Lithium Batteries Gas Engines 0 100 25 80 40 65 60 40 70 15 80 0 Please draw a PPF curve for the…
A: PPF of two goods Gas engines and batteries.
Q: C. Suppose that for Q units of a certain product, the demand function is P = 200e010 cedis and the…
A: Given information Demand function P=200e-0.01Q Supply function P=(200Q+49)0.5
Q: Suppose that domestic price level for a basket of goods is given by P = 311 in domestic currency,…
A: The PPP phrase accommodates for this by utilizing a basket of products, which consists of a variety…
Q: specify which issues below are “Distributive”, “Compatible”, or “Integrative”. 1. First-year…
A: A number of differences in interests and objectives leads to interdependence of several players.…
Q: Imagine a small town with three car repair shops competing for a limited number of customers.…
A: The ideal conclusion of a game occurs where there is no incentive to depart from the beginning…
Q: Explain whether each of the following events will increase, decrease, or have no effect on long run…
A: During long-run time intervals every factor can be changed and the factors in the long-run time…
Q: 4- What type of production possibility frontier is depicted in Figure 1? Explain your answer. - Use…
A: Equilibrium in the market occurs where quantity demanded equals quantity supplied.
Q: Firm 1 faces a demand function of q1 = 100– 2p1+p2, where q is Firm l's output, Pi is Firm %3D l's…
A: Under these presumptions, it very well may be shown that the Bertrand (Nash) equilibrium is that…
Q: Discuss very briefly the disruptions faced in Africa which was caused by the Covid-19…
A: here we discuss the disruptions faced in Africa which was caused by the Covid-19 pandemic as…
Q: 0.50.5 Adam's preferences are represented by the utility function u(x1, x2) = x?5x25. The prices of…
A: Answer: Given, Utility function: ux1,x2=x10.5x20.5Price of x1=p1Price of x2=p2Income=I (a). The…
Q: Consider a representative university student who decides how much time to spend on study. Let us…
A: Given information There are 2 representative university students - Bruno & Angela Bruno Use…
Q: Use the following information to answer the question Quantity (number ofFixedVariable Total Marginal…
A: Marginal cost is the cost which occurs due to the production of one more unit of output is called…
Q: Which of the following four - firm concentration ratios would be the best indication of a perfectly…
A: Four firm concentration is a concept ehich is used to means the extent of the competition in the…
Q: Price and cost (dollars) 50 40 .ATC 10 MC MR 10 Quantity (thousands of households) 20 30 40 50 The…
A: A sole provide of cable television and having downward sloping ATC meaning that it is natural…
Q: If the price of a good falls and expenditure on the good rises, the demand for the good is A.…
A: Elasticity measures the responsiveness of quantity demanded to changes in price level.
Q: According to the Descartes' rule, the number of positive i* value for the following cash flow is:…
A: The number of the positive real roots is at most equal to the number of sign changes, according to…
Q: Which of the following illustrates explicit and implicit costs? O A. Ned pays an hourly wage of $18…
A: Explicit cost is the amount paid to someone outside. Implicit cost is the cost of using own…
Q: 1. Mrs. Renata converted the payment of her P50,000 debt to five (5) equal payments at the end of…
A:
Q: Revenue and cost (dollars per unit) 50 MC ATC AVC 40 30 20 10 io 20 30 40 50 Output (units per day)…
A: Economic Profit:- The disparity between the money a corporate enterprise receives out of its…
Q: A farmer is located next to the rancher. They face the following problem.Cattle graze on the…
A: Each year damage = $30 Rancher business = $100 Farmer business = $80 Fence cost = $10
Q: 8. The cost of producing a small transistor radio set consists of P23.00 for labor and P37.00 for…
A:
Q: The Consumer Price Index is: O a number that measures the cost of a market basket of goods and…
A: Answer (1): Consumer price index: a consumer price index shows the average price of a market basket…
Q: Q (7) If the functions of the total revenues and total costs of a particular economic project are as…
A: Total revenue is the addition of total profit and the total cost. Total cost is the difference…
Q: outer belt highway is being planned for The initial cost is estimated to be $170,000,000. Benefits…
A: A cost is the amount of money that has been spent to produce something or provide a service and is…
Q: Recall that the economic goal of criminal law is to minimize the sum of three things: (1) the social…
A: Given information Social cost of each criminal=$10000 The cost of trying and punishing=$25000 Due to…
Q: The U.K. Office of Fair Trading has recently unveiled a plan that will offer immunity from…
A:
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Suppose that the market demand for mountain spring water is given as follows: P = 1200 - Q Mountain spring water can be produced at no cost. Determine the level of output produced and price charged by each firm in a Cournot duopoly. A monopolist faces a demand with constant elasticity of -2.0.It has a constant marginal cost of R20 per unit and sets a price to maximise its profit. If marginal cost should increase by 25 percent, would the price charged also rise by 25 percent? Provide a brief explanation.A manager of a nightclub realizes that demand for drinks is more elastic among students and is trying to determine the optimal pricing schedule. Specifically, he estimates the following average demand for his customer types: Under 25: qr=18-5p Over 25: q=10-2p The two age groups visit the nightclub in equal numbers on average. Assume that drinks cost the club $2 to make. If the manager cannot identify to which group his customers belong, what is the uniform monopoly price? If the manager can identify to which group his customers belong, what price will he charge each group. Assume the manager can only charge a single price to each group. If the manager can charge a separate entry fee and a price per drink for each group, what two-part price will the manager set for reach group. Now suppose that once again it is impossible to identify which group the customers belong. Suppose the manager lowers the price of drinks to equal to marginal cost and still wanted to attract both…A nightclub manager realizes that demand for drinks is more elastic among students, and is trying to determine the optimal pricing schedule. Specififically, he estimates the following average demands: • Under 25: qr= 18 − 5p • Over 25: q = 10 − 2p The two age groups visit the nightclub in equal numbers on average. Assume that drinks cost the nightclub $2 each. (a) If the market cannot be segmented, what is the uniform monopoly price? (b) If the nightclub can charge according to whether or not the customer is a student but is limited to linear pricing, what price (per drink) should be set for each group? (c) If the nightclub can set a separate cover charge and price per drink for each group, what two-part pricing schemes should it choose? (d) Now suppose that it is impossible to distinguish between types. If the nightclub lowered drink prices to $2 and still wanted to attract both types of consumers, what cover charge would it set? (e) Suppose that the nightclub again restricts itself…
- Suppose that the demand for a special kind of silica is given by Q = 55 – 0.5P, where Q is in tons of silica per day and P is the price per ton. This special kind of silica is produced by Thorpe Industries (a monopolist) that has a constant marginal and average total cost of $10 per ton. [up to 6 points] a. Derive the inverse demand and marginal revenue curves faced by Thorpe Industries. b. Equate marginal cost and marginal revenue to determine the profit-maximizing level of output. c. Find the profit maximizing price for Thorpe Industries. d. How would your answer change if marginal cost were instead given by MC = 10+Q?Suppose a discriminating monopolist is selling a product in four separate markets in which demand functions are: Q1 = 300 – P1; Q2 = 200 – 0.5 P2; Q3 = 150 – 0.4P3 and Q4 = 75 – 0.25P4. Assume further that the total cost of the firm is given as TC = 61,000 – 100Q. As an economic adviser you are required to determine: The prices to be charged in the fourmarkets and the amount of output to be sold in each market so that total profits can be maximized. Calculate the total profit to be made from the strategy of price discrimination. Explain what would have happened if this monopolist did not implement this strategy of price discrimination. Elasticities in each market and comment.Suppose that the monopolist from Question 4 is now forced to charge the same price in both markets. Using thedemand functions and cost function from Question 4, what is the total inverse demand in this case? What is theprofit-maximizing price? What is the monopolist’s profit? (Question 4 = A monopolist is operating in two separate markets. The inverse demand functions for the two markets are P1 = 35 – 2.5Q_1 and P2 = 30 – 2Q_2. The monopolist’s total cost function is TC(Q) = 8 + 5(Q_1 + Q_2). Q_1 means Q subscript 1
- Suppose a discriminating monopolist is selling a product in four separate markets in which demand functions are: Q1 = 450 – P1; Q2 = 200 – 0.5 P2; Q3 = 150 – 0.25P3 and Q4 = 80 – 0.4P4 Cost function is TC = 95,000 – 100Q. a. As an economic adviser, determine the Prices to be charged in the three markets and amount of output to be sold in each market so that total profits can be maximized. b.Calculate the total profit to be made from the strategy of price discrimination and clearly explain how this strategy has aided this monopolist.Suppose a discriminating monopolist is selling a product in four separate markets in which demand functions are: Q1 = 300 – P1; Q2 = 200 – 0.5 P2; Q3 = 150 – 0.4P3 and Q4 = 75 – 0.25P4. Assume further that the total cost of the firm is given as TC = 65,000 – 100Q. As an economic adviser you are required to determine: The prices to be charged in the four markets and the amount of output to be sold in each market so that total profits can be maximized. Calculate the total profit to be made from the strategy of price discrimination. Explain what would have happened if this monopolist did not implement this strategy of price discrimination. Elasticities in each market and comment.Consider any market that has an inverted demand curve given by P = 200-0.6Qd, where P is the market price and Qd is the quantity demanded. Whatever the market structure, it is known that the production of this good takes place through Cmg = CVme= $80.00. Consider that the production of this market can be done by a monopolist company or by two duopolists. If it is a duopoly, the companies will organize themselves as a Stackelberg duopoly and will each have a fixed cost of $1,500.00. If it is a monopoly, this company will have a lot of expenses with licenses with the government, as it is the only one to explore the resource. In this way, your fixed costs would reach $5,000.00. Given this information, evaluate the best balance for this market, from the point of view of consumers.
- A movie theater in Ellentown, College Cinema, specializes in movies for college students. College Cinema is considered a monopoly in the region, and it serves two groups of moviegoers, LeTall University students and Livayette College students. LeTall students' demand function for movie tickets is QL=20-pL, and Livayette students' demand function is Qv=30-pv. The movie theater incurs zero marginal cost for serving additional customer, but there is a fixed cost of showing a movie at 20. 1. You are the marketing manager of College Cinema. The finance manager, who is your enemy in the company, suggests that charging different prices to LeTall and Livayette students would certainly be a profitable move. There is only so much the finance manager knows about marketing. As the marketing manager, you know that it is costly to implement the group price discrimination, because the company needs to hire additional staff to monitor and identify the student groups by screening their IDs. You…A movie theater in Ellentown, College Cinema, specializes in movies for college students. College Cinema is considered a monopoly in the region, and it serves two groups of moviegoers, LeTall University students and Livayette College students. LeTall students' demand function for movie tickets is QL=20-pL, and Livayette students' demand function is Qv=30-pv. The movie theater incurs zero marginal cost for serving additional customer, but there is a fixed cost of showing a movie at 20. 1. Sum the demand functions of Letall and Livayette students to obtain the total demand function. Then, derive the inverse total demand function. 2. College Cinema is currently charging a uniform ticket price to both groups of students. If the movie theater has been maximizing profit, what are the uniform ticket price and its profit.If a single firm with constant marginal costs of £8 monopolizes a market with demand Q=100-2P, how large is the DWL of the monopoly? 771 551 882 441 1250