Assume a firm faces two customers in the market. Customer 1 has an inverse demand of: p=120-q1, and Customer 2 has an inverse demand of p = 200-q2 Marginal cost per unit is constant and equal to $40. Determine the profit-maximizing price and identical lump-sum fee charged to these two customers. profit maximzing price = ? Lump sum fee = ?
Q: a) A monopolist's marginal cost is MC = 5 and its demand curve is P = -5Q+ 25. Calculate the…
A: The objective of the question is to calculate the price and quantity for a monopolist, the regulated…
Q: A rectangle is a four-sided figure that has two sets of parallel sides, so that we have two sides of…
A: Step 1:Step 2: Step 3: Step 4: Thanks
Q: Which of these is an internal factor that influences pay rates? collective bargaining the worth of a…
A: The value of the job is one of the elements that directly affects pay rates among the others. This…
Q: The table shows real GDP, Y, the components of planned expenditure, and aggregate planned…
A: Computing MPC; Marginal propensity to consume (MPC) is the change in consumption in response to a…
Q: None
A: Public education was called "the great leveler" when it began in the early nineteenth century…
Q: Lesson 12 Question 7
A: To calculate the change in consumer surplus due to the imposition of a tariff, we need to follow…
Q: Mr. Smith has saved $1969 each year for 20 years. A year after the saving period ended, Mr. Smith…
A: Initial Savings Phase (20 Years)Mr. Smith saves $1969 each year for 20 years. The future value ( FV…
Q: Lesson 9 Question 1
A: In perfect competition, firms maximize profit by producing at a quantity where marginal cost (MC)…
Q: ?Question 2.10: Calculate Growth Rate of Real Per Capita GDP Now suppose there are more goods and…
A: Step 1: Real GDP Per Capita:The average economic production per person, adjusted for inflation, is…
Q: For example, an increase in the money supply, a __________ variable, will cause the price level, a…
A: FEEL FREE TO ASK FOR CLARIFICATIONS
Q: A company is considering the strategy to further expand its activity into a foreign market it…
A: Bid (£750m) / \ / \ Successful…
Q: None
A: A cash transfer has a distinct impact on work effort, illustrated through economic theory.…
Q: $5 P MC ATC P 70 10 d = MR $5 S 2 100 Q 4. The consumer's surplus in the above market is. D 1,000 Q…
A: answer 4 Consumer surplus is the area of triangle PZY. Thus, consumer surplus = (1/2) * base *…
Q: PROBLEM 3 – Slutsky Equation, Income Effect, Substitution Effect, and Total Effect There are two…
A: Slutsky equation states that the total change in the demand consists of the income and substitution…
Q: Suppose MPC is 0.6, beginning from equilibrium, investment demand rises by 30. a) how much does…
A: To solve this problem, we can use the Keynesian cross model, which shows the relationship between…
Q: Ron values a guitar lesson at $60, Jon places a value of $80 on it. Each wants to take a guitar…
A: To calculate the deadweight loss from the tax on guitar lessons, we need to find the consumer…
Q: The courts have ruled that it is a reasonable restraint of trade (and therefore permissible) for the…
A: It is important to take into account a number of variables when determining what constitutes a fair…
Q: 1,000 900 800 700 600 500 400 Consumption ($ billions per year) 300 200 100 45° 0 100 200 300 400…
A: Autonomous consumption is defined as the level of consumption of a consumer even when they have no…
Q: Suppose the amount of change IWU students carry is exponentially distributed with a mean of $0.88.…
A: The objective of the question is to understand the type of distribution the population and the…
Q: Find a 3 x 3 stochastic matrix A that has exactly one initial state vector that will generate a…
A: The objective of the question is to find an initial state vector that will generate a Markov chain…
Q: 3. The effect of negative externalities on the optimal quantity of consumption Consider the market…
A: Ans. ) Given the question, where the market for electricity is considered. Here a power plant dumps…
Q: The beautiful expert Hand written solution is not allowed.
A: When socially optimal output is produced by the monopolist, then price = MC Let's analyze the table…
Q: The wow expert Hand written solution is not allowed
A: In a dominant strategy equilibrium, each player chooses their strategy regardless of the other…
Q: Marcoeconomics Provide q auality solution for better ratings
A: a)The hourly rate for labor is determined by market supply and demand.From the table, the supply of…
Q: None
A: When the quantity supplied of a good or service equals the quantity demanded, this is referred to as…
Q: None
A: In economics, the concepts of supply and demand are fundamental to understanding how markets…
Q: In the 1960s, water was inexpensive. However, by 1965 Canada saw one of the country’s worst…
A: i. The 1965-1966 Canadian drought had a major effect on the wheat and water markets:Water Market:…
Q: Discuss the short-term approach to interest rate determination in the Caribbean and factors…
A: The short-term approach to determining interest rates in the Caribbean is impacted by a number of…
Q: Market demand is MWTP= 50 - 2Q. Market supply is MC = 19 + 4Q. Each unit transacted results in a $5…
A: To find the socially optimal quantity of production (Q*), we need to equate the marginal social cost…
Q: Econ question: a.Explain and show the impact on the money market when the Federal Reserve lowers the…
A: The objective of the question is to understand the impact on the money market when the Federal…
Q: None
A: To find out whether the profit margin will increase, stay the same, or fall when the firm increases…
Q: Keynesian Liquidity Preference Theory and Its Relevance to the Caribbean Region •Outline the main…
A: Keynesian Liquidity Preference Theory's Core Ideas John Maynard Keynes developed the Keynesian…
Q: 2. An accident costs $1000 if it occurs. If neither party takes precaution, the chance of an…
A: The accident costs $1000.The chance of an accident to occur is 10%.The effect of precaution taken by…
Q: You purchased a company for $5,500,000. The value of each piece of the company is as follows:…
A: Let's calculate the book value of the company in five years. The book value represents the net worth…
Q: Please solve all parts will upvote. Hand written solution is not allowed.
A: To determine the returns to scale of each production function, we need to examine the effect of…
Q: Lesson 12 Question 6
A: The correct answer is: d. all of the above Explanation:a. An import quota on coffee beans: An import…
Q: None
A: 2. True. When the tax rate on wages falls, the take-home wage or effective wage increases for…
Q: Typed please and asap please provide a quality solution for better ratings
A: To find the equilibrium price in both the U.S. and Japanese markets, we need to apply the profit…
Q: Lourdes has just retired and plans to consume $10498 from the retirement account every year for the…
A: Lourdes needs to find the present value of a series of future cash flows (the $10498 withdrawals).…
Q: You recently obtained a job with a sports analytics firm, and your first assignment is to write a…
A: The objective of the question is to understand how the process of hypothesis testing for the…
Q: Dataware is trying to determine whether to give a $10 rebate, cut the price $6, or have no price…
A: Business economics is concerned with navigating complex market scenarios that necessitate extensive…
Q: 8. Explain what happens to equilibrium price and quantity when the demand curve shifts left (you can…
A: The impact of a rightward shift in the supply curve on equilibrium price and quantity.Initial…
Q: 8. Explain what happens to equilibrium price and quantity when the demand curve shifts left (you can…
A: In economics, equilibrium is the state where the quantity demanded by consumers equals the quantity…
Q: When the Fed supplies "too much" monetary stimulus in the face of a negative aggregate demand shock:…
A: When the Federal Reserve responds to a negative aggregate demand shock by supplying "too much"…
Q: Lesson 11 Question 1
A: Since a tax is levied on the supplier, it reduces the amount of money the supplier receives per unit…
Q: According to Figure 9-1, column D would represent which type of product? BASIS OF COMPARISON Product…
A: As per my knowledge, the Correct option is Specialty A specialty products entails a brand-centered…
Q: Refer to the balance sheet for Bank X to answer questions 16. and 17 Bank X-Balance Sheet…
A: The calculation of excess reserves for Bank X is based on the information provided in the balance…
Q: Answer relevant with diagram
A: The marginal rate of substitution shows how a consumer is willing to sacrifice one good (Y) to get…
Q: How can both the union and the firm be better off by bargaining over the wage rate and employment…
A: Efficient Outcomes:In a more complex institutional setup, where both wage and employment are…
Q: How could a company minimize asymmetric information if they were interested in pricing their stock…
A: The objective of the question is to understand how a company can minimize asymmetric information to…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- A manufacturer of a new patented product has found that he can sell 70 units a week to the customer if the price is $48. In error, the price was recently advertised at $78 and as a result, only 40 units were sold in a week. The manufacturers fixed costs of production are $1,710 a week and variable costs are $9 per unit. You are required to: a. Show the equation of the demand function linking price (P) to quantity demanded (X) assuming it to be a straight line is P = 118-xAssume a firm faces two customers in the market. Customer 1 has an inverse demand of p= 120 - 91, and Customer 2 has an inverse demand of p= 180 – 92. Marginal cost per unit is constant and equal to $20. Determine the profit-maximizing price and identical lump-sum fee charged to these two customers. For the following questions, assume the firm will always sell to both customers. The profit-maximizing price is S (Enter a numeric response using a real number rounded to two decimal places.) The lump-sum fee is $ (Enter a numeric response rounded to the nearest penny.)A manufacturer of a new patented product has found that she can sell 70 units a week direct to the customer if the price is $78. In error, the price was advertised as $138, and, as a result only 40 units were sold in a week. The manufacturer's fixed costs of production are $50 a week and variable costs of $18 per unit. You are required to: a. Show the equation of the demand function linking price(P) to quantity demand(X), assuming it to be a straight line, is P+2X=218 b. Find where the manufacturer breaks even c. Find the quantity that maximizes profit d. Recommend a unit price which would maximize profit e. Determine the maximum profit f. Find the equation of new demand function, assuming a sudden change in trading conditions resulting a 20% reduction in demand at all price levels
- The Edgewater Hotel in Seattle has 210 guest rooms. When they charge a discounted rate of $250 per night, the occupancy rate is 80%. Experience has shown that each $10 increase in rate results in 5 fewer occupied rooms. Define the function that models the total revenue to the hotel as a function of x, the number of $10 price increases.Consider PNW Airlines, an airline focused on transporting cargo. Their fleet is composed of four cargo airplanes. Total cargo capacity of the fleet is 100,000 cubic feet. The monthly cost of maintaining and operating the fleet is $50,000. Market research indicated that the demand curve for cargo capacity is d=300,000-25,000p where d is the demand across all segments and p is the transport price per cubic foot. Question 1: What is the price that maximizes profit for PNW Airlines if all the demand comes from a single segment? What is the demand if PNW sets price to be the value found in Question 1? How much profit does PNW Airlines make?Round off your final answer to whole #. A company produces and sells a consumer product and is able to control the demand by varying the selling price. The approximate relationship between price and demand is p=45 + 2700/D - 5000/D2 for D > 1 The company is seeking to maximize its profit. The fixed cost is $1,000 and the variable cost is $38 per unit. What is the number of units that should be produced and sold each month to maximize profit?
- In 2020, the town of Rollaville had a more-or-less competitive market for hot pretzel stands. Any respectable seller could set up a hot pretzel stand as long as certain health requirements are met. Each stand has the constant marginal cost of $4 per pretzel and can make 40 hot pretzels per day. Let the demand function for hot pretzels be given by D(p) = 600 - 40p, where demand is measured in number of hot pretzels per day, and price is measured in dollars. Assume that the industry is perfectly competitive. 1. In equilibrium, the price will be [Select] and there will be [Select] hot pretzel stands in equilibrium. 2. In 2021, the City Council of Rollaville created a hot pretzel stand licensing board and issued a license to each of the existing stands. The board stated that they would issue no more new licenses in 2021. Costs had not changed, but the demand curve for hot pretzel had become D(p) = 680 - 40p. The the new equilibrium price of a hot pretzel in 2021 is [Select] 3. In 2022, the…Question 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) Now consider two cases (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? c. Analyze, with graphs, the two alternative pricing strategies…In small collegetowns, it is not uncommon that the rental market is dominated by one or a handful ofproperty management companies. Suppose demand for housing is given by MWTP(Qd)=2400-4QdSupply from the monopolistic landlord can be characterized by MC(Qs)=1500+Q°1. How many units will be rented in this collegetown? At what price?
- A friend of yours is considering two movie - streaming services. Provider A charges $120 per year regardless of the number of movies streamed. Provider B does not have a fixed service fee but instead charges $1 per movie. Your friend's annual demand for movies is given by the equation Qd = 150 - 50P, where P is the price per movie. (a) With each provider, what is the cost to your friend of an extra movie? (b) In light of your answer to (a), how many movies with each provider would your friend watch? (c) How much would she end up paying each provider every year? (d) How much consumer surplus would she obtain with each provider? (Hint: Graph the demand curve and recall the formula for the area of a triangle.) (e) Which provider would you recommend that your friend choose? Why?A firm faces two types of consumers. Consumer A has an inverse demand of P = 120-10 Q and consumer B has an inverse demand of P = 60-2Q. The firm has a constant marginal cost of $20. Assume the firm does not know which type a given consumer is. She offers to sell the good at a price of 70$ per unit. However, if the customer buys 10 or more units, she will offer a quantity discount and charge only 40$ per unit (including the first 10). Which consumer will use the price discount? Question 7 options: Neither costumer will purchase from this firm at all. Customer A will choose the quantity discount and customer B will not choose the quantity discount. Both consumers will chose the quantity discount. Neither of the two consumers will opt for the quantity discount. Instead, both will purchase at the higher price of 70 and buy less than 10 units each. Customer B will choose the quantity…A firm faces two types of consumers. Consumer A has an inverse demand of P = 120- 10 Q and consumer B has an inverse demand of P = 60-2Q. The firm has a constant marginal cost of $20. Assume the firm does not know which type a given consumer is. She offers to sell the good at a price of 70$ per unit. However, if the customer buys 10 or more units, she will offer a quantity discount and charge only 40$ per unit (including the first 10). Which consumer will use the price discount? Both consumers will chose the quantity discount. Neither of the two consumers will opt for the quantity discount. Instead, both will purchase at the higher price of 70 and buy less than 10 units each. Customer A will choose the quantity discount and customer B will not choose the quantity discount. Customer B will choose the quantity discount and customer A will not choose the quantity discount. Neither costumer will purchase from this firm at all.