The market inverse demand curve for thrust bearings is P = 15 - 1.5Q, where Q is measured in hundreds of bearings per day and P is the price per bearing. The marginal cost is $3. Suppose two firms, which are Bertrand competitors, produce identical thrust bearings for this market. If this market were monopolized, the market quantity would be 600 200 400 800
Q: Price and cost (dollars per pound of steak) 20.00 18.00 16.00 S=MC 14.00 12.00 10.00 8.00 6.00 4.00…
A: A) in perfect competitive market:- 1) in perfect competitive market, there are many number of…
Q: You deposit $100 today, $200 one year from now, and $300 three years from now. How much money will…
A: Cash flow refers to the quantity of cash or cash-equivalent that a corporation gets or expends as…
Q: 1. During the most recent financial crisis, the Fed conducted large open market operations. The…
A: The monetary policy is operated by the central bank to produce the desirable and positive impacts in…
Q: You own a 5-year bond that has a face value of $1000 and pays 10% interest each year. Two years…
A: Answers ace Value of bond=F=$1000 Annual Interest=1000*10%=$100 Time left to maturity=n=5-2=3…
Q: which of the following is not a characteristic of nonverbal communication, a) its ambiguous b) it…
A: Nonverbal communication is the process by which people communicate information about their feelings,…
Q: Consider the following game. There are two players: an incumbent (denoted by I) and a potential…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: The table shows an indifference schedule for several combinations of X and Y. Combination Quantity…
A: Bundle ( x,y ) At C is (12,3) At d is (10,4)
Q: Suppose the government has determined that the socially optimal quantity of chemical pollution is…
A: Given:- Social optimal quantity=120 million ton Price and Quantity demand shown in graph=$8 and 180…
Q: A cake valued at $40 is divided among five players (P1, P2, P3, P4, P5) using the last diminisher…
A: Given; Value of cake= $40 Player 2 Player 3 Player 4 Player5 Value of current C-piece $5.50…
Q: From 1974 - 1995, the average growth rate in GDP per hour worked in the United States was A. 2.6%.…
A: The average annualized return of an investment, portfolio, asset, or cash flow over time is known as…
Q: The distinctive way of life allegedly developed in urban areas is referred to as __________.
A: When a large proportion of world's population lives in urban areas then it is referred to as…
Q: Suppose you are talking with your friend about agricultural trade. She say n’t understand why Canada…
A: Absolute Advantage: The absolute advantage arises when a country produces more goods from the same…
Q: Consider the following sequential strategic situation, called the centipede game. The game has 100…
A: Backward Induction is defined as a technique which is used to determine the equilibrium outcome of…
Q: Suppose a firm wants to produce 50 units of output at minimum cost and it has three factories with…
A: Perfect Competition refers to the type of market where there is a large number of firms that produce…
Q: Under a marginal cost pricing rule, a natural monopoly makes zero economic profit incurs an economic…
A: For a natural monopoly we have downward sloping Average cost and when average cost is falling, AC is…
Q: Suppose we have a small open economy model with neatral money. (ch17) The monetary agency increases…
A: Money Neutrality refers to the phenomena that the change in money supply impacts price levels in the…
Q: 5. The market demand for super-sticky glue is Q = 240 – 6P and the market supply is Q=-60 + 4P.…
A:
Q: Calculate the four-firm concentration ratio and the HHI. What is the market structure of the…
A: CR4 is the sum of top 4 firms market share HHI is the sum of square of market share of all the firms…
Q: Find the consumer's and producer's surplus if for a product D(x) = 16 0.006x and S(r) only final…
A:
Q: National Public Radio (NPR) is a public good. The cost (supply) of each "unit" of NPR is P=2.…
A:
Q: F3
A: The type of market here in which batteries are produced is an Oligopoly market. The share of one…
Q: Assume the following functions are for the goods market of a hypothetical economy: (1) I = 150 -…
A: IS curve shows the goods market equilibrium. It shows the interest rate levels at which investment…
Q: Next question Price and cost (dollars per client) 100.00 90.00 MC 80.00 ATC 70.00 60.00 50.00 40.00…
A: In the short run, a monopolistic competitive market is the same as a monopoly market. Under the…
Q: The cross-price elasticity of demand between movie tickets and movie theater popcorn is estimated to…
A: Cross price elasticity measures how quantity demanded of one good changes when price of other good…
Q: Lithium Batteries Gas Engines 0 100 25 80 40 65 60 40 70 15 80 0 Please draw a PPF curve for the…
A: PPF of two goods Gas engines and batteries.
Q: C. Suppose that for Q units of a certain product, the demand function is P = 200e010 cedis and the…
A: Given information Demand function P=200e-0.01Q Supply function P=(200Q+49)0.5
Q: Suppose that domestic price level for a basket of goods is given by P = 311 in domestic currency,…
A: The PPP phrase accommodates for this by utilizing a basket of products, which consists of a variety…
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: Imagine a small town with three car repair shops competing for a limited number of customers.…
A: The ideal conclusion of a game occurs where there is no incentive to depart from the beginning…
Q: Explain whether each of the following events will increase, decrease, or have no effect on long run…
A: During long-run time intervals every factor can be changed and the factors in the long-run time…
Q: 4- What type of production possibility frontier is depicted in Figure 1? Explain your answer. - Use…
A: Equilibrium in the market occurs where quantity demanded equals quantity supplied.
Q: Firm 1 faces a demand function of q1 = 100– 2p1+p2, where q is Firm l's output, Pi is Firm %3D l's…
A: Under these presumptions, it very well may be shown that the Bertrand (Nash) equilibrium is that…
Q: Discuss very briefly the disruptions faced in Africa which was caused by the Covid-19…
A: here we discuss the disruptions faced in Africa which was caused by the Covid-19 pandemic as…
Q: 0.50.5 Adam's preferences are represented by the utility function u(x1, x2) = x?5x25. The prices of…
A: Answer: Given, Utility function: ux1,x2=x10.5x20.5Price of x1=p1Price of x2=p2Income=I (a). The…
Q: Consider a representative university student who decides how much time to spend on study. Let us…
A: Given information There are 2 representative university students - Bruno & Angela Bruno Use…
Q: Use the following information to answer the question Quantity (number ofFixedVariable Total Marginal…
A: Marginal cost is the cost which occurs due to the production of one more unit of output is called…
Q: Which of the following four - firm concentration ratios would be the best indication of a perfectly…
A: Four firm concentration is a concept ehich is used to means the extent of the competition in the…
Q: Price and cost (dollars) 50 40 .ATC 10 MC MR 10 Quantity (thousands of households) 20 30 40 50 The…
A: A sole provide of cable television and having downward sloping ATC meaning that it is natural…
Q: If the price of a good falls and expenditure on the good rises, the demand for the good is A.…
A: Elasticity measures the responsiveness of quantity demanded to changes in price level.
Q: According to the Descartes' rule, the number of positive i* value for the following cash flow is:…
A: The number of the positive real roots is at most equal to the number of sign changes, according to…
Q: Which of the following illustrates explicit and implicit costs? O A. Ned pays an hourly wage of $18…
A: Explicit cost is the amount paid to someone outside. Implicit cost is the cost of using own…
Q: 1. Mrs. Renata converted the payment of her P50,000 debt to five (5) equal payments at the end of…
A:
Q: Revenue and cost (dollars per unit) 50 MC ATC AVC 40 30 20 10 io 20 30 40 50 Output (units per day)…
A: Economic Profit:- The disparity between the money a corporate enterprise receives out of its…
Q: A farmer is located next to the rancher. They face the following problem.Cattle graze on the…
A: Each year damage = $30 Rancher business = $100 Farmer business = $80 Fence cost = $10
Q: 8. The cost of producing a small transistor radio set consists of P23.00 for labor and P37.00 for…
A:
Q: The Consumer Price Index is: O a number that measures the cost of a market basket of goods and…
A: Answer (1): Consumer price index: a consumer price index shows the average price of a market basket…
Q: Q (7) If the functions of the total revenues and total costs of a particular economic project are as…
A: Total revenue is the addition of total profit and the total cost. Total cost is the difference…
Q: outer belt highway is being planned for The initial cost is estimated to be $170,000,000. Benefits…
A: A cost is the amount of money that has been spent to produce something or provide a service and is…
Q: Recall that the economic goal of criminal law is to minimize the sum of three things: (1) the social…
A: Given information Social cost of each criminal=$10000 The cost of trying and punishing=$25000 Due to…
Q: The U.K. Office of Fair Trading has recently unveiled a plan that will offer immunity from…
A:
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- The cost function for producing ethanol from municipal waste (wastehol) is 1000+10q2where q is in millions/gallons per year. The demand for wastehol is currently perfectly inelastic at 5 million gallons per year. Assume that producers of wastehol are perfectly competitive. California is deciding whether to convert all wastehol producers into a regulated wastehol utility. If wastehol is a regulated monopoly utility with the cost function above, what price would regulators set as the price of wastehol? Now assume that the wasteahol market has boomed and demand has grown to 20 (again million gallons per year). Now what is the regulated price of wastehol? You are the wastehol producer and are trying to decide whther to lobby for deregulating the wastehol industry. If wastehol were deregulated, if demand remains 20, what would the perfectly competitive price be? If you are a wastehol customer, you would prefer a deregulated industry if demand were 20? True/False?Eyeglasslux is a single-price monopolist in the eye-glass frame market. It faces a Market demand given by Q=355-2P. Its only cost is a Marginal Cost of MC=Q What is the Marginal Revenue for the 268th unit?A firm is originally operating as a single-price monopolist that faces a market demand curve ?(?)=190−1/6?and total cost curve equal toTC(Q)=30,500+42Q, with constant MC equal to ??(?)=42for all units produced. Part (a): How much output does the firm produce and at what price is each unit sold for? Part (b): Calculate the firm’s profit. The firm now realizes there are actually two distinct groups of consumers that purchase their product, with the following demand functions: ?(?1)=168−1/4?1 ?(?2)=234−1/2?2 Their total and marginal cost curves have not changed. If the firm wanted to successfully practice third-degree price discrimination: Part (c): How many units of output would they sell to group 1 and how much will each consumer in group 1 pay? Part (d): How many units of output would they sell to group 2 and how much will each consumer in group 2 pay? Part (e): How much profit is earned by the firm when they practice third-degree price discrimination? Part (f): How much did profits…
- Assume a single-price monopolist has an inverse market demand curve given by P(Q)=300-0.5Q, and has a cost curve: C(Q)=125+20Q+0.5Q2. We already know that Monopolist will provide 140 units, Economic profit is 19475, and Economic Rent is 190. If the impact of a 35% ad valorem tax imposed on the consumers in the market. Then: Q1: What is the equilibrium quantity will be sold in the after-tax equilibrium? Q2: What are the economic rents of the monopolist?Consider a quantity-setting duopoly. The two firms are Alpha, Ltd. and Beta, Inc. The demand schedulein this market is:p Qd180 150155 175130 200Each firm has a constant marginal cost of 30 per unit. Suppose each firm can choose to produce either 75units or 100 units. Firms make their quantity choices simultaneously and the market price is whatever itneeds to be to sell the total output in the market.(a) Draw up the normal form game matrix, showing the players, strategies, and payoffs. Show your workdetermining the profits in each box in the matrix.(b) Determine the Nash equilibrium of this game.(c) Suppose the firms were able to come to an agreement to make more profit. What would this agreementbe?(d) Explain how the government might respond to such an agreement and whyConsider a quantity-setting duopoly. The two firms are Alpha, Ltd. and Beta, Inc. The demand schedulein this market is: p Qd180 150155 175130 200Each firm has a constant marginal cost of 30 per unit. Suppose each firm can choose to produce either 75units or 100 units. Firms make their quantity choices simultaneously and the market price is whatever itneeds to be to sell the total output in the market.(a) Draw up the normal form game matrix, showing the players, strategies, and payoffs. Show your workdetermining the profits in each box in the matrix.(b) Determine the Nash equilibrium of this game.(c) Suppose the firms were able to come to an agreement to make more profit. What would this agreementbe?(d) Explain how the government might respond to such an agreement and why.
- Mighty Cleaners, Inc, is a monopolist in the specialised cleaning industry. Its cost is C = 220 - 4Q + Q2 and demand is P = 180 - 3Q, where Q is the number of hours of cleaning they provide and P is the price per hour of cleaning they charge. Find the optimal price P and output Q. What would be its profit? Please round your final answers to two decimal places, if necessary. For example, type in 12.5 for quantity, 2.34 for price and 300.78 for profit. • the optimal output (the number of hours of cleaning) is 45 hours. • the optimal price is $ 45 • the profit is 0he Pear Computer Company just developed a totally revolutionary new personal computer. Pear estimates that it will take competitors at least two years to produce equivalent products. The demand function for the computer is estimated to be P=2,500−500Q�=2,500−500� where Q� is millions of computers. The marginal (and average variable) cost of producing the computer is $900. Assuming Pear acts as a monopolist in its market, the profit-maximizing price and output levels are per computer and million computers, respectively. The total contribution to profits and fixed costs at this output level is million. Pear Computer is considering an alternative pricing strategy of price skimming. It plans to set the following schedule of prices over the coming two years: Complete the following table by calculating the contribution to profit and overhead for each of the 10 time periods and prices. Time Period Price Quantity Sold Total Contribution ($) (Million)…Industrial Economics A prott-maximizing monopolist sells its products in two diferent markets n the first market, the demand is P, = 70 - 9 in the second market, the demand is P, = 50 - 2 Marginal costs are constant in each market and equal to MC=S10. The total profit that the monopolist will get if it is able to engage in third-degree price discrimination wil be O (a) 2880 $ O (b) 3200 S O (c) 2900 S O (d) 3000 S Buccessivo
- You are the manager of a monopoly, and your analysts have estimated your demand and cost functionsas P = 300 − 3Q and C(Q) = 2, 000 + 2Q2, respectively.(a) What price-quantity combination maximizes your firm’s profits?(b) Calculate the maximum profits.(c) Is demand elastic, inelastic, or unit elastic at the profit maximizing price-quantity combination?(d) What price-quantity combination maximizes revenue?(e) Calculate the maximum revenues.(f) Is demand elastic, inelastic, or unit elastic at the revenue maximizing price-quantity combination?Dr. Krieger is the only bionic arm specialist on the remote pacific island of Pangu. Because he is the only specialist, and because of the island's remoteness, Dr Krieger operates as a profit maximising monopolist. His marginal cost of production for each bionic arm is $5000 per arm. Below is a table of potential prices he could charge for each bionic arm that he fits, and the corresponding quantities sold in a given year. Price ($/bionic arm) 15000 13000 11000 9000 7000 5000 Quantity (bionic arms) 10 15 20 25 30 35 What is Dr. Krieger's profit-maximising quantity? Answer to the nearest whole number of bionic arms (with no decimal places).A monopolist faces a demand curve Q(p) = 13p-4. The marginal cost (MC) is constant at 4 and there is no fixed cost. What is the monopolist's margin m = p-MC? Р (a) m (b) m || - m = 62 334 4 (d) m = 1/1/5 (e) None of the above.