USING ECONOMIC REASONIGS WOULD THE IMPOSITION OF A PRICE CELING BE AN EFFECTIVE SOLUTION TO THE GOUGING PRICE OF MASKS FOR THE COVID-19 PANADDMIC
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USING ECONOMIC REASONIGS
WOULD THE IMPOSITION OF A
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- Can you help with parts c,d, and e please? The estimated daily demand for river corssings on a proposed new bridge is: Qd = 100,000 - 20,000P where Qd is the quantity demanded measured in number of daily crossings and P is the price(toll) per crossing in dollars. Engineers estimate that constructing the new bridge will result in a fixed cost of $1.2 billion or $120,000 per day over the life of the bridge. Once constructed, there are no marginal costs and variable costs associated with the bridge's use. Based upon the above information, answer the following questions: a. If a private company were to build the bridge, what would be the profit-maximizing number of daily crossings? b. What price per crossing(toll) would the profit-maximizing company establish? c. What would be the socially optimal number of daily crossings? d. What deadweight loss would exist given your answers to part (a) and (b)? e. Would a profit-maximizing company build the bridge?Windies Cricket manufactures Windies supporter jerseys. The quantity q, of thesejerseys demanded weekly is related to the wholesale price per jersey p, by thefollowing equation:? = −0.006? + 15The weekly total cost incurred by Windies Cricket for producing q jerseys is:?(?) = 38? − 0.02?2 + 30,000a. Determine an expression to represent the weekly Revenue functionb. Determine an expression to represent the weekly Profit function.c. Calculate the weekly Revenue when ten dozen jerseys are produced and sold.d. Will Windies Cricket record a loss or profit if they were to produce and sell 2450jerseys?e. If Windies Cricket wishes to maintain a total cost less than $42,000.00, whatrange(s) of Windies jerseys should be produced. f. Calculate the equilibrium price and quantity for Windies jerseys.Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh Q1 = 12 – P1 Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) (i) Company is effectively able to price discriminate in the two markets. What will be the total profits? (ii) Suppose the company does not engage in price discrimination. By charging the same price in the two markets what are the profit maximizing levels of price, output, and the total profits? (iii) Analyze, with graphs, the two alternative pricing strategies available to the company.
- A market analysis employed by the “Sad Student Company” reveals that the number oflots of the game named “Handsome Killer: Revenge of the Teacher” ordered by thewholesalers when the game is offered at a price of dollars per lot is given by the formula:p=1500-2.5qa) Find the company’s total, marginal and average revenues b) Find the price and quantity maximizing the total revenue by first expressing therevenue as a function of price rather than of quantityRoad Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh Q1 = 12 – P1 Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) b. consider two cases: (i) Company is effectively able to price discriminate in thetwo markets. What will be the total profits? (ii) Suppose the company does not engage in price discrimination. By charging thesameprice in the two markets what are the profit maximizing levels of price,output, and the total profits? c. Analyze, with graphs, the two alternative pricing strategies available to the company.Your current prices are $311 in the Southwestern region; $278 in the western-region and $240 in the New England region. Your marginal cost is now $212.21. Given the predicted changes in quantity demanded by region per problem 1 using the stay even analysis %ΔQd = %ΔP/[%ΔP +((P-MC)/P)], can you raise prices by 7% in any of the regional markets? State your conclusion and then show the all the steps supporting your conclusion. (Note you are not being asked to compute the new price. The predicted changes in quantity demanded by region per problem 1 are: 19.32 or 19% percent change in quantity demanded for the Southwestern region Western Region is 0.245 or 24.5 or 25% NE Region is 0.4032 or 40.32 or 40% I don't understand this question and need assistance.
- Answer b and c Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets,Bangladesh and Sri Lanka. Demand for Bicycles in thesetwo markets is given by the following Functions: Bangladesh Q1 = 12 – P1 Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) a. Determine the company’s total profit function. Also, (i) What are the profit maximizing levels of price and output for the two markets? (ii) Calculate the marginal revenues in each market. b. Now consider two cases: (i) Company is effectively able to price discriminate in thetwo markets. What will be the total profits? (ii) Suppose the company does not engage in price discrimination. By charging thesameprice in the two markets what are the profit maximizing levels of price,output, and the total profits? c. Analyze,…At Temple of the Emerald Buddha, Bangkok, on a daily basis, there are two groups of customers: Foreigners and Thais and their groups’ demand equations for tickets per day are identified by business economists who work for the Temple as the followings: qforeigners= 400-5Pforeigners qthais= 200 - 5Pthais Given that the daily fixed cost for the Temple is 900 Baht. Daily marginal cost is constant at 10 Baht for serving a foreigner while daily marginal cost is constant at 4 Baht for serving a Thai. 1. Suppose the Temple’s current strategy is charging customers same price of 25 Baht for a ticket, how many tickets do the Temple sell per day? and how much profits do the Temple make per day? Show the process on how you get the answers 2. Continuing from (1.) above, explain in words, would there be a better strategy for the Temple? Can the temple implement the strategy? why? 3. Suppose the Temple adopt the strategy discussed in (2.) causing the…An economist was trying to understand the relation between price, Marginal Revenueand Marginal cost in Monopoly and Perfect Competition. Determine equilibrium priceand output in the long run under Monopoly and Perfect Competition if the marketdemand curve is given as QD=500-2P and Marginal cost is Rs 50. Also comment onthe values obtained in the case of Monopoly and Perfect Competition
- An industry has the following cost function: C(X, Y ) = 1500+20X +20Y . Market demands for the 2 goods are given by PX =80−X, and PY =140−2Y Suppose the government wished to use two part tariffs in these markets, and suppose further that two part tariffs are feasible. Imagine that there are 10 consumer in each market. Solve for a set of two part tariffs (one for each martket) that pay the firm zero profits in total, yet achieves efficiency.Under what conditions is cost-plus pricing mostappropriate?Explain the roleof costs in pricingdecisions anddescribe how variouscombinations of price,fixed cost, and unitvariable cost affect afirm’s break-even point