3. Dumping.The firm Zapatero Ltd. has a monopoly on shoes in the Spanish market. Zapatero Ltd. canalso sell in the international market which is perfectly competitive. However, the foreignfirms are not allowed to sell in the Spanish market. The cost function of Zapatero Ltd. isTC = 2Q² – 12Q + 10, and the demand curve in Spain is P = 8 – 2Q. The price of shoesin the international market is 4. Determine graphically and anlytically the price of shoesin Spain and the international market. How is dumping defined in this case?

Dumping is defined in the ambit of international trade as price in domestic economy< price…

Answered: 3. Dumping. The firm Zapatero Ltd. has…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Do this problem using excel solver. Africa controls 80% of the world's lithium refining, a material needed for the production of lithium batteries in electric vehicles. The demand for lithium batteries is P = $20,000 - 2.5 Q, where Q is in tons and P is in $/ton. The long run marginal and average cost of production is constant at $2,000/ton. a) Assuming the monopoly model applies, determine price, quantity, and profit for Africa using excel solver b) Now assume new firms enter the lithium market, resulting in (perfect) competition. Determine the price, quantity, and profits, when the industry is in (long run) equilibrium using excel solver c) Finally, compare social welfare for the two cases, and determine deadweight loss using excel solver.
#4 please
1750 1500 1250 1000 750 500 250 0 1200 3600 6000 8400 The figure above shows demand and marginal revenue for a single price monopoly. At any price above $ demand is elastic. Assume production costs are constant and equal to $750.00 (i.e., AC = MC = $750). 1) Output is units per day at a price of $ per unit. 2) Profit is $ 3) Consumer surplus is $ 4) If this market was perfectly competitive, output would exceed the single-price monopoly output by Time units.
#2 please
Suppose a cable company provides cable service to a small town. The total revenue, marginal revenue, total cost, and marginal cost of providing various quantities of cable subscriptions (units in thousands per month) are presented in the table below. Quantity 0 1 2 3 4 5 6 Price 202 200 198 196 194 192 190 Total Revenue $0 200 396 588 776 960 1140 Assume the local cable company is a monopoly. To maximize profits, the monopoly should produce At that level of output, the cable company will earn economic profits of $ (thousand per month). Marginal Revenue 200 196 192 188 184 180 Total Cost 0 180 270 330 420 660 960 Marginal Cost 180 90 60 90 240 300 (thousand) units. (Enter a numeric response using an integer.)
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.
Gas Light, Inc. is currently the only natural gas supplier in a region. The company maximizes its profit when it sells 10 billion m³ of gas at $0.60 per m³. Gas Light's marginal cost is constant at $0.30 per m³. If the market was perfectly competitive, it would supply 20 billion m³ of gas at $0.30 per m³. What is the deadweight loss resulting from the monopoly? $ A billion.
Suppose the market for asparagus has the following (inverse) market demand schedule: p=88-0.2Q The industry has the following cost structure: MC = ATC = $4 The Amalgamated Asparagus Company is looking to spend factor resources in socially-wasteful legal battles and advertising campaigns to maintain a full monopoly in this market. Answer the following. a. For its monopoly, Amalgamated Asparagus is willing to pay resources worth up to $14070 Suppose that competitive rent-seeking pressures cause Amalgamated Asparagus to pay its maximum willingness-to-pay for monopoly rights. b. Social cost of this monopoly = $ 4410 Hint: Your answer to (a) should be whole number. Think about why.
Alice is the monopoly producer for cosmetics in Wonderland. Marketdemand for cosmetics is given by p = 500 − 4Q and Alice’s costsof production are C(q) = 16q. Please calculate the monopoly price,quantity and profits. What would be the fair market price in perfectcompetition? Also calculate the welfare loss which occurs due to themonopoly
Assume that one of the hot dog vendors successfully lobbies the city council to obtain the exclusive right to sell hot dogs within the city limits. This firm buys up all the rest of the hot dog vendors in the city and operates as a monopoly. Assume that this change doesn't affect demand and that the new monopoly's marginal cost curve corresponds exactly to the supply curve on the previous graph. Under this assumption, the following graph shows the demand (D), marginal revenue (MR), and marginal cost (MC) curves for the monopoly firm. Place the black point (plus symbol) on the following graph to indicate the profit-maximizing price and quantity of a monopolist. PRICE (Dollars per hot dog) 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0 0 45 Monopoly MC MR 90 135 180 225 270 315 QUANTITY (Hot dogs) D 360 405 450 Monopoly Outcome Deadweight Loss ?
You are the owner of a monopoly firm. The demand curve that you face is: 100 0. 5Q - Your Total Cost and Marginal Cost are: 1035 +10Q +0. 5Q2 10 +Q TC |3| MC The government decides to regulate your firm and imposes the Efficient Price. What is the price you must set? Regulated Efficient price $77.5 Regulated Efficient price = $55 Regulated Efficient price = $60 Regulated Efficient Price = $70
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