Micro Economics For Today
Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
Question
Chapter 13, Problem 16SQ
To determine

The impact of price equal to LRMC.

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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?
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  • 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?
    MonoMed, 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.
    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   In a Table calculate TR, MR, TC, AVC, ATC and MC at each price
  • 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 marketplace
    [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…
    Answer 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?
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