1. A return appearance from Homework 9: In 1986 a patent was granted for a greenhouse helmet ( https://www.wipo.int/patents/en/2018 patent picks.html #5 in this article). The patent gives the inventor the sole right to produce these greenhouse helmets. The inverse demand for the greenhouse helmets is P = 200 - Q. The company's costs are TC-2000+Q and MC-2Q. 200-20 = 20 Q - 50; P-SI50 300 – 4Q = 20 Q = 50; P=$200 !! 300 MC MC 275 250 250 225 225 ATC ATC 200 p00 175 175 Sso 150 125 125 100 100 75 75 50 50 D1 D2 25 MR1 25 MR O 25 50 75 100 125 150 175 200 225 a Greenhouse Helmets 25 50 75 100 125 150 175 200 225 Greenhouse Helmets Calculate the markup in this case. Calculate the markup in this case.
1. A return appearance from Homework 9: In 1986 a patent was granted for a greenhouse helmet ( https://www.wipo.int/patents/en/2018 patent picks.html #5 in this article). The patent gives the inventor the sole right to produce these greenhouse helmets. The inverse demand for the greenhouse helmets is P = 200 - Q. The company's costs are TC-2000+Q and MC-2Q. 200-20 = 20 Q - 50; P-SI50 300 – 4Q = 20 Q = 50; P=$200 !! 300 MC MC 275 250 250 225 225 ATC ATC 200 p00 175 175 Sso 150 125 125 100 100 75 75 50 50 D1 D2 25 MR1 25 MR O 25 50 75 100 125 150 175 200 225 a Greenhouse Helmets 25 50 75 100 125 150 175 200 225 Greenhouse Helmets Calculate the markup in this case. Calculate the markup in this case.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
A4
Transcribed Image Text:1. A return appearance from Homework 9: In 1986 a patent was granted for a greenhouse helmet (
https://www.wipo.int/patents/en/2018 patent picks.html #5 in this article). The patent gives the inventor the sole
right to produce these greenhouse helmets. The inverse demand for the greenhouse helmets is P = 200 - Q. The
company's costs are TC-2000+Q?² and MC-2Q.
200-20 = 20
Q - 50; P-SI50
300 – 4Q = 20
Q = 50; P-$200
!!
300
MC
MC
275
250
250
225
225
ATC
ATC
200
p00
175
175
Sso
150
125
125
100
100
75
75
50
50
D1
D2
25
MR1
25
MR
O 25 50 75 100 125 150 175 200 225
25 50 75 100 125 150 175 200 225
a Greenhouse Helmets
Greenhouse Helmets
Calculate the markup in this case.
Calculate the markup in this case.
Calculate the price elasticity of demand at the profit
maximizing price.
Calculate the price elasticity of demand at the profit
maximizing price.
Which demand is more inelastic?
Which markup is larger?
Describe the relationship between elasticity of demand and markup.
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