10. If the firm is regulated such that it earns zero economic profit, the firm will sell pairs of shoes at a price of per pair. a) Q₁; P₁ b) Q2; P1 c) Q4; P3 d) Q3; P2 Price P MC ATC Demand MR Q₁ Q2 Q3 Q4 Quantity

10. If the firm is regulated such that it earns zero economic profit, the firm will sell pairs of shoes at a price of per pair. a) Q₁; P₁ b) Q2; P1 c) Q4; P3 d) Q3; P2 Price P MC ATC Demand MR Q₁ Q2 Q3 Q4 Quantity

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

4. A firm produces two products, the demands for which are independent. Both products have zero marginal cost. The firm faces four consumers with the following reservation prices: Consumer 1 2 3 4 Good 1 25 40 80 100 e. Good 2 100 80 40 25 a. Show the optimal price and quantity of Good 1 (unbundled) on a graph with the firm's demand and marginal revenue. b. Show the optimal price and quantity of the bundle (Goods 1 and 2) on a graph with the firm's demand and marginal revenue (for the bundle). c. Should the firm bundle these goods? Compare the firm's profits under both scenarios. d. Which approach do consumers prefer? Compare consumer surplus under both scenarios. Now suppose that MC = 30. Reassess the optimal prices, quantities, and profit with and without bundling.
Deadweight Loss and Demand Elasticity. Using the linked figure as a starting point, consider a similar product that has the same monopoly price and quantity ($18 and 200 doses), but a more elastic demand. The long-run marginal cost is the same ($8). a. A more elastic demand generates a market demand curve. C Price ($) $18 b C $8 Long-run marginal cost and market supply Market Demand :200 400 Doses of drug per hour
please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly
What would happen to the following if there is anincrease in marginal cost? (a) The price that the monopolist can charge. (b) The quantity that the monopolist will produce. (c) The quantity that the perfectly competitive industry will produce. (d) The maximum profit of the perfectly competitive industry. .
1. Company A is the only one that can sell a certain number of products in New York City. Firm A faces competition elsewhere in the United States. If Company A is able to price discrimination, a. Will prices in New York City be different from elsewhere? if yes or no, explain your reasons clearly. b. In this case, do you think there will be a high correlation of price movements between New York City and elsewhere? c. What do you think about the existing market structure in New York? please help with your explanation by drawing the required relevance curve.
China is a monopoly supplier of pandas to the world’s zoos and rents out a pair of pandas for $1 million a year. If China can supply 5 pairs of pandas to 5 zoos worldwide each year, its total revenue is _____ Group of answer choices $5 million. $50 million. $1 million. $25 million. $2 million.
1
3. Call Your Aunt is a monopoly seller of deli sandwiches. In DC, the demand curve is p = 16 In Maryland, it is p y Marginal cost is 4. = 12 100 100 (i) Find the profit-maximizing prices under third-degree price discrimination. (ii) Find the profit-maximizing uniform price. (iii) Now 14 – By, where B is a positive constant. Without calculating the new profit-maximizing uniform price, explain whether it is higher or lower than in (ii). suppose that Call Your Aunt starts to sell in Virginia. The demand curve is p
TC 50 TR 40 30 20 10 10 15 20 25 30 Quantity (units per day) 34) The figure above shows a monopoly's total revenue and total cost curves. The monopoly's economic profit is positive if it produces between A) 0 and 20 units. B) 5 and 20 units. C) 0 and 15 units. D) 0 and 5 units. Total revenue and total cost (dollars per day)
If a firm charges a lower price they will have a lower profit margin but a higher profit; if a firm charges a higher price they will have a higher profit margin but a lower profit. Which of the following statements is accurate? A. The firm should charge a lower price for the higher profit. B. The firm should a higher price for the lower profit. C. The firm should charge a higher price for the higher profit margin. D. Whether the firm should charge a higher price or lower price indeterminate.
help
2. Monopoly, Practice Question Firm P is a monopolist for a new drug that makes people feel thinner. the total cost function is C(Q) = 200 + 10Q + Q² The inverse demand function is p(Q) = 82 - Q (a) By how much do revenues increase if this firm sells one more (small) unit of output? By how much does its cost go up if it produces one more (small) unit of output? (b) What is the optimal price and quantity the monopolist should charge and sell? (c) What is the profit the monopolist makes? Should the firm shut down in the short or long run? (d) If the company increases its price by a small fraction (let us say 1%), by what proportion does demand go down? [Round to two decimal places.] (e) What percentage of the price is due to costs and what is due to markup? [Round to two decimal places.] (f) What is the deadweight loss of the monopoly pricing compared to competitive prices?