Economics For Today
10th Edition
ISBN: 9781337613040
Author: Tucker
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 13, Problem 16SQ
To determine
The impact of price equal to LRMC.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
40. Regulations that permit a regulated firm to cover its costs and to make a normal level of profit are commonly referred to as
A. cost-plus regulation.
B. price cap regulations.
C. regulatory capture.
D. profit regulation.
Give typing answer with explanation and conclusion
Output
prices
average (total)cost
Total cost
marginal cost
Total profit/loss
10
10
-108
20
10
4
-48
30
10
5
3
40
10
6.20
40
50
10
8
60
60
10
10
60
2. i) Find the Average(total)cost, Total cost and marginal cost
ii)In which market structure does Johnson Electronics (Pty)Ltd operate?
iii)what level of output maximizes the firms profit
MonoMed, having a Patent on production of a medicine, has following Demand and Cost Schedule :
Price (Rs ) 12 11 10 9 8 7 6 5 4 3
Quantity 0 1 2 3 4 5 6 7 8 9
TVC ( Rs ) 0 13 16 20 25 31 38 46 56 68
Where Fixed Cost is Rs 5
How would you define the market structure of MonoMed? What are the characteristics? Does the firm have pricing power?
Chapter 13 Solutions
Economics For Today
Ch. 13.2 - Prob. 1YTECh. 13.6 - Prob. 1.1YTECh. 13.6 - Prob. 1.2YTECh. 13 - Prob. 1SQPCh. 13 - Prob. 2SQPCh. 13 - Prob. 3SQPCh. 13 - Prob. 4SQPCh. 13 - Prob. 5SQPCh. 13 - Prob. 6SQPCh. 13 - Prob. 7SQP
Ch. 13 - Prob. 8SQPCh. 13 - Prob. 9SQPCh. 13 - Prob. 10SQPCh. 13 - Prob. 11SQPCh. 13 - Prob. 12SQPCh. 13 - Prob. 1SQCh. 13 - Prob. 2SQCh. 13 - Prob. 3SQCh. 13 - Prob. 4SQCh. 13 - Prob. 5SQCh. 13 - Prob. 6SQCh. 13 - Prob. 7SQCh. 13 - Prob. 8SQCh. 13 - Prob. 9SQCh. 13 - Prob. 10SQCh. 13 - Prob. 11SQCh. 13 - Prob. 12SQCh. 13 - Prob. 13SQCh. 13 - Prob. 14SQCh. 13 - Prob. 15SQCh. 13 - Prob. 16SQCh. 13 - Prob. 17SQCh. 13 - Prob. 18SQCh. 13 - Prob. 19SQCh. 13 - Prob. 20SQ
Knowledge Booster
Similar questions
- What are some main reasons for government shutdown? List and explain at least 3 such reasons. Provide an example of an interest group (Tobacco business or other) and explain what tactics it has used to influence public policy. Has it been successful? Explain why?arrow_forwardMonoMed, having a Patent on production of a medicine, has following Demand and CostSchedule: Price (Rs ): 12 11 10 9 8 7 6 5 4 3 Quantity 0 1 2 3 4 5 6 7 8 9 TVC ( Rs ) 0 13 16 20 25 31 38 46 56 68 Where Fixed Cost is Rs 5 In a Table calculate TR, MR, TC, AVC, ATC and MC at each price. Plot the Demand, Marginal Revenue MR, Average Total Cost ATC, Average Variable Cost AVC and Marginal Cost MC Curves of the Firm in a clearly labelled graph. Calculate the profit earned, if any and show the area on the firm’s graph. How would you define the market structure of MonoMed? What are the characteristics? Does the firm have pricing power? E) What will be the impact of the firm on societal welfare? Would there be welfare loss as compared to a competitive firm? If so, briefly explain. Support your answer using MonoMed’s graph in (b) above.arrow_forwardMonoMed, having a Patent on production of a medicine, has following Demand and Cost Schedule : Price (Rs ) 12 11 10 9 8 7 6 5 4 3 Quantity 0 1 2 3 4 5 6 7 8 9 TVC ( Rs ) 0 13 16 20 25 31 38 46 56 68 Where Fixed Cost is Rs 5 In a Table calculate TR, MR, TC, AVC, ATC and MC at each pricearrow_forward
- . A. How the price of the frim is determined from industry price?B. Compare the Automobile industry and agriculture according to market structure. C Give two examples of each 1. Legal Monopoly 2. Economic Monopolyarrow_forwardYour business, which has some market power, has the following demand (D), marginal revenue (MR), marginal cost (MC), and average cost (AC) curves. Move point E to label the profit-maximizing price and quantity for your firm. If the goal of your business is to maximize profit, how much will it produce, and what price will it charge? -The business will exit the market because it is unable to cover its average costs. -The business will produce 40 units, and charge a price of $5. -The business will produce 30 units, and charge a price of $3. -The business will produce 30 units, and charge a price of $6.arrow_forwardMonoMed, having a Patent on production of a medicine, has following Demand and Cost Schedule : Price (Rs ) 12 11 10 9 8 7 6 5 4 3 Quantity 0 1 2 3 4 5 6 7 8 9 TVC ( Rs ) 0 13 16 20 25 31 38 46 56 68 Where Fixed Cost is Rs 5 d. Calculate the profit earned, if any and show the area on the firm’s graph.arrow_forward
- No Monopoly Select one (1) of the market structures and identify two (2) products (not companies) that can be found in those structures. and justify the answer with a minimum, in one (1) paragraph of 5 to 6 sentences. Abounds in product features.arrow_forward6. A firm manufactures and markets a product that sells for Birr 20 per unit. Fixed costs associated with activity total Birr 40,000 a month, while variable cost per unit is Birr 10. A maximum of 10,000 units can be produced and sold. Required: a) Drive the TR, TC and Total profit functions. b) Sketch the TR, TC and Total profit functions in the same coordinate system. c) What is the Break-even point (in terms of quantity and sales volume)? d) Drives the new TC, Total profit functions given that FC is increased by Birr 10,000 a month, and calculate the new break-even point. e) Drive the new TC and Total profit functions given that unit variable costs is decreased by 20% and calculate the new Break-even point. f) Drive the new TR and Total profits functions given that the unit selling price increases by 20% and calculate the new break-even point. g) What is the relationship that you may inter from BEP& FC, P& BEP and V& BEP? h) Assume selling prince increases by 10%…arrow_forwardWhen a company has market power, it is _____ in its market? 1.Not able to impact market equilibrium price 2.One of many small companies 3.Not a price taker 4.A producer of non-differentiated productsarrow_forward
- What element of perfectly free competition did M-Pesa mobile banking improve by putting the power and capacity of mobile phone banking in the hands of millions of new consumers who could now use their mobile phones to buy goods in the marketplace? A) Numerous buyers and sellers in the marketplace B) Goods so similar that buyers don't prefer one seller over another C) Full and perfect knowledge of what other buyers and sellers are doing D) No government interference in pricing in the marketplacearrow_forward[Let’s think about awarding a patent to any medication drug using the concepts that we learned in this course. Let’s say the drug is an allergy medicine called “Allergy Gone”- (made up name, not a real medicine). The marginal cost of producing daily dose of this medicine is $5. The annual demand and marginal revenue curve facing “Allergy Gone” are shown below: [ using the graph and information supplied above, answer the questions below. Note- MR, MC and D refer to Marginal revenue, marginal cost, and demand curve in the figure above] [ Let’s say “Allergy Gone” is the first effective allergy drug and has awarded a patent. Therefore, “Allergy Gone” has a monopoly in the allergy drug market. Using the graph above, find out the monopoly price and quantity in this market and explain in 1-2 sentences. 2. [Calculate the consumer surplus, producer surplus and deadweight loss as “Allergy Gone” becomes a monopoly in the allergy drug market. 3. [ Now, let’s assume “Allergy Gone” enters…arrow_forwardAnswer parts a-c plz total cost= 100+2q2 marginal cost = 4q market demand curve = 90-2q monopolist’s marginal revenue curve = 90-4q Part a) What is the quantity, profit, and price of the monopoly? Part b) Assuming a competetive industry, what is quanity, price, and profit? (P=MC can be used for perfect competition) Part c) What is the price elasticity of demand at the monopoly price and quantity? What does this mean in context?arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial Economics: Applications, Strategies an...EconomicsISBN:9781305506381Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. HarrisPublisher:Cengage Learning
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning