When a firm is able to engage in perfect price discrimination, its marginal revenue curve lies below its demand curve lies above its demand curve
Q: According to the textbook, what entities are the main suppliers of funds to the loanable funds…
A: In the loanable market, people interact with each other to exchange loanable funds in terms of…
Q: Suppose you are estimating a wage regression, where salary is the dependent variable and age, years…
A: Regression refers to a type statistical method used in finance, economics, and other industries to…
Q: For a Saturday matinee, adult tickets cost $7.50 and kids under 12 pay only $5.00. If 110 tickets…
A: Expenditure on the good refers to price of the good multiplied by the quantity purchased.
Q: The Beta of a stock is very popular concept in CAPM. One decade ago, a lot of researchers have…
A: The answer is as follows:-
Q: 6.11 Chemco Enterprises is the manufacturer of Dry, a hydrophobic coating that will waterproof…
A: PLEASE FIND THE ANSWER BELOW. RATE OF RETURN: A rate of return (RoR) is the net gain or loss of an…
Q: onsider twd developed and developing countries, the population growth rate of eveloped countries is…
A: At a consistent state, capital per laborer is steady, that is investment is a breakeven investment.…
Q: The J-curve effect relies upon A. Lags in demand response to devaluation. B. Larger demand…
A: (Q) The J-curve effect relies upon A. Lags in demand response to devaluation. B. Larger demand…
Q: A perfectly competitive firm has a demand function Pd (Q) = 121 and costs given as TC (Q) = Q - 15Q²…
A: In perfect competition market profit maximizing condition determines by the price and marginal cost…
Q: How could fiscal policy alleviate the problem? What specific policy changes would be needed?
A: Everything involving public funding or taxes is referred to as fiscal. Fiscal policy refers to how…
Q: A firm must decide between two designs. Their effective income tax rate is 33%, and MACRS…
A: Given information Two design Design A: Initial investment =$940000 Net revenue=$260000 Salvage…
Q: Question #6: Consider a Cournot duopoly, the firms face an (inverse) demand function: Pb = 215 -…
A: Given; Demand function; Pb=215-7Qb Marginal Cost for firm1; MC1= 3Q Marginal Cost for firm2; MC2= 9Q…
Q: Question 45 TRUE or FALSE. *Each question requires explanations (Max 3 sentences)* A negative…
A: Any form of additional compensation is referred to as a liquidity premium. Compensation required to…
Q: A monopoly creates a deadweight loss because the monopoly produces more than the efficient quantity…
A: Monopoly is a form of market structure in which there is only a single seller of the good which has…
Q: A projet cost $500000 and yield annually a profit of $80000 after depreciation @ 12 % p.a but before…
A: Payback period is the the amount of time it takes to recover the cost of an investment , Here we…
Q: If the cost of lemons falls from $5 to $4 a bag, we could predict the supply curve lemonade would a)…
A: Supply curve has a positive slope. It shows a direct relationship between price and quantity…
Q: Use the following information to answer the next fifteen questions. The following graph depicts a…
A: Equilibrium in the market occurs where quantity demanded equals quantity supplied that is at the…
Q: 2. Profits from recycling paper, cardboard, aluminum, and glass at a liberal arts college have…
A: Basic calculation In this question:- The expected profit at the end of year 1=Php30000 This profit…
Q: The U.K. Office of Fair Trading has recently unveiled a plan that will offer immunity from…
A:
Q: Consider Alexei who makes $1,400 per week and just won a ‘set for life’ lottery ticket which…
A: Budget Constraint shows that the value of all the goods that a consumer consumes should be less than…
Q: regulate production · Each individual works for his own success Pure Communism • Government does not…
A: In capitalism, the main variables and choices are left to the market conditions to determined. It is…
Q: H6. Which of the following transactions should or should not be counted in GDP? Answer why or why…
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…
Q: 24. Determine the present worth of a maintenance contract that has a cost of $30000 in year 1 and…
A: In economics and finance, present worth, conjointly brought up as present discounted worth, is that…
Q: 8. The cost of producing a small transistor radio set consists of P23.00 for labor and P37.00 for…
A: Total Cost = Total Fixed Cost + Total Variable Cost Breakeven implies where the profit is 0 and the…
Q: equilibrium price before the tax was imposed, and Qe was the equilibrium quar After the tax, PC is…
A: Equilibrium is achieved at a point where demand curve intersects the supply curve.
Q: Assume there are two goods, prices are indicated, and there is a consumer with a specified income.…
A: Price effect is the effect of the price change on the quantity demanded of a product. The price…
Q: Quantity Marginal Benefit Marginal Cost 1 $50 $2 $45 $15 $39 $16 4 $5 $21 $-18 $38 Using the above…
A: Marginal cost is defined as the cost which is incurred by the producer in order to produce one more…
Q: Jsing the sinking fund formula or a financial calculator, complete the following: (Do not round…
A:
Q: An increase in tariffs and quotas on imports causes a country's currency to appreciate.
A: Quotas are limits set on the number of commodities which will be imported during a particular period…
Q: The average fixed cost curve a. always rises with increased levels of output b. declines as long as…
A: The average fixed cost is the per unit fixed cost incurred in the production process as it is…
Q: 1. Using the Standard Select Life Table at 5% per year interest, calculate the standard deviation of…
A: * SOLUTION :- (1)
Q: Required Q (2) if the demand function for a particular project is in the following form: Q = 75 - 5P…
A: As given Demand function is Q = 75 - 5P Price elasticity of demand = -dQdP×PQ
Q: ave atn) in the production of seafood. O a) comparative advantage O b) negative incentive Oc)…
A: The answer is - a) comparative advantage coastal regions are stronger commercial fishing economics…
Q: Consider the demand function D (p) = 93 – 4p. When the price changes from Pi 5 to p2 (numeric, round…
A: Demand curve shows an inverse relationship between price and quantity demanded. Consumer surplus…
Q: explaining how humans behave? O a) money O b) incentives Oc) justice O d) fairness
A: being presented with money prompted large changes in individuals' activities. The individuals who…
Q: The existence of positive externalities associated with a programme of vaccination against a…
A: Externalities is the spillover effects of an economic activities of an agent which has impact on…
Q: For a Saturday matinee, adult tickets cost $7.50 and kids under 12 pay only $5.00. If 110 tíckets…
A: Price of adult ticket is $7.5 and kids ticket is $5
Q: Calculate the lower confidence limit (LCL) and upper confidence limit (UCL) of the mean for each of…
A: We have a: x=70, n=69, σ=30 and α=0.05 “Since you have asked multiple questions, we will solve the…
Q: A corn refining company produces corn gluten cattle feed at a variable cost of $83 per ton. If…
A: The profit function is a mathematical equation that determines a company's total income after all…
Q: Elaborate on the several alternative approaches to address the various challenges facing global food…
A: Food security refers to the condition where all people without any discrimination gets the required…
Q: Which of these is a basic goal of the Federal Reserve System? a. export promotion b. zero…
A: The correct answer is given in the second step.
Q: When Ellen buys a new computer for her accounting business, it is included in gross domestic product…
A: GDP measures the value of goods and services produced in an economy within the borders of the…
Q: This diagram shows the age-earnings profiles of three different individuals who opt to choose three…
A: Given, Three age -earning profiles of three different individualsThree options : Not graduating…
Q: The term "officially unemployed" would apply when a worker a) quits his or her job to stay at home.…
A: Unemployment occurs when a person who wants to work at the prevailing wage rate is unable to find…
Q: Economic growth dynamics?
A: Economic growth dynamics is concerned with the economy's oscillations. The majority of economic…
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: Suppose the xenophobia situation in South Africa becomes worse, which will cause the average lavour…
A: The Solow model is an economic growth model that examines the change in the output level in an…
Q: b) households
A: In the loanable market the amount of loan and interest rate is decided by in the intersection of…
Q: Which of the following would not be included in 2015 U.S. GDP. OCalifornia constructing a new state…
A: When talking about GDP of a country, it is the measure of national income based on the final output…
Q: According to the monetary model of exchange rate, if real income increases, then the price level…
A: In an economy, monetary model of exchange rate explains the nature of international market based on…
Q: Suppose you are estimating a wage regression, where salary is the dependent variable and age, years…
A: Regression is a sort of statistical procedure used in finance, economics, and various fields to…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- suppose Rosaria is a simple monopolist who sells rose water measured in ounces. her marginal costs are constant and equal to $1, regardless of who she sells to, and she has no fixed costs to consider. the market for rose water has only two consumers, Ying and Kay. Ying's deman is Q^y = 10 - 2P, while Kay's deman is Q^k = 2 - P Rosalina is able to practice third degree price discrimination. Her total profits areA perfectly price discriminating monopolist produces more quantity of output than a single-pricemonopolist.A. TrueB. FalsePrice discrimination by monopolists's can also be embarked by competitive firms.
- If a natural monopolist practices perfect price discrimination, how does it affect the profit-maximizing level of output, consumer surplus, producer surplus, total surplus, and deadweight loss? Explain with a diagram.Profit maximization and loss minimization BYOB is a monopolist in beer production and distribution in the imaginary economy of Hopsville. Suppose that BYOB cannot price discriminate; that is, it sells its beer at the same price per can to all customers. The following graph shows the marginal cost (MCMC), marginal revenue (MRMR), average total cost (ATCATC), and demand (DD) for beer in this market. Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity for BYOB. If BYOB is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if BYOB is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing its loss. (Graph 1) Suppose that BYOB charges $2.00 per can. Your friend Felix says that since BYOB is a monopoly with market power, it should charge a higher price of $2.25 per can because this will increase BYOB's profit.…Consider a monopolist who sells its product in two distinct markets (and therefore can charge differentprices in these different markets). By the way, charging observably different group different prices is called3rd-degree price discrimination. The cost function is C(Q1 + Q2) = 0.25[Q1 + Q2]^2The inverse demand curves for these markets are p1(Q1) = 200 – Q1 for market 1 and p2(Q2) = 300 – Q2 formarket 2, where Q1 is the quantity sold in market 1 and Q2 is the quantity sold in market 2. At some pointbelow, you may wish to use the marginal cost function, which is MC(Q1 + Q2) = 0.5[Q1 + Q2]. a) State this 3rd-degree price discriminating monopolist’s maximization problem, using the particulars ofthis problem. Think carefully about what this monopolist is choosing and what it is trying to maximize. b) State two equations that an (interior) solution will satisfy. c) Solve for the optimal quantity to sell in each market. d) Solve for the price to charge in each market. e) Compute the…
- Consider a monopolist who sells its product in two distinct markets (and therefore can charge differentprices in these different markets). By the way, charging observably different group different prices is called3rd-degree price discrimination. The cost function is C(Q1 + Q2) = 0.25[Q1 + Q2]^2The inverse demand curves for these markets are p1(Q1) = 200 – Q1 for market 1 and p2(Q2) = 300 – Q2 formarket 2, where Q1 is the quantity sold in market 1 and Q2 is the quantity sold in market 2. At some pointbelow, you may wish to use the marginal cost function, which is MC(Q1 + Q2) = 0.5[Q1 + Q2]. a) State this 3rd-degree price discriminating monopolist’s maximization problem, using the particulars ofthis problem. Think carefully about what this monopolist is choosing and what it is trying to maximize. b) State two equations that an (interior) solution will satisfy. c) Solve for the optimal quantity to sell in each market. d) Solve for the price to charge in each market. e) Compute the…Consider a monopolist local movie theater which has two distinct client groups, adults and seniors. The inverse demands for the two group are given by:p(qA) = a − b · qAp(qB) = a/3-b/3.qB(a) Describe the demand function in the two markets graphically and then compute the demand elasticity in each market.(b) Compute the demand function qP under the assumption that the movie theather canonly offer a single price to both segments of the market. (Hint: at a given price addthe demand of the adults and senior market. You need to go from the inverse demand function to the demand function.) Illustrate the aggregate demand function in contrast to the demand functions in each segment. Now compute the optimal price of the movie theater when it can only offer a single and common price to the market segments. Who goes to the movies and who does not?(c) Next allow the movie theater to offer different prices in each segment and customerscannot mispresent their identity. What is the optimal price in…A basketball club is the only one in its region and is therefore able to behave like a monopolist. It sells tickets to Adults (A) and Juniors (J), whose demand curves are given by:Pa = 120 — QaPj = 60 — QiAdditionally, the club's total costs are given by TC = 10Q What conditions must be satisfied for a producer to be able to implement a policy of price discrimination?
- What is meant by the "welfare loss" of monopoly? Why does no welfare loss occur if a monoplist sucessfully practises perfect price discrimination ?Asked Dec 16, 2019 a monopolist finds the demand curve to be linear. with data points (q,p) on that line of being (100,125) and (20,165). How maqny items can he sell if the price is p=90? What price should she charge to maximize revenue?If a monopolist can practice perfect price discrimination: D O profits will increase. producer surplus decreases. consumer surplus increases.