**BN 6.3 (a) (b)****Case:**Firm A is the owner of all the Good A stores in City A. The market demand curve for a set of Good A is:\[ P = 300 - Q \]The marginal revenue curve associated with this demand curve is:\[ MR = 300 - 2Q \]The firm faces costs of:\[ TC = 150Q + 0.5Q^2 \]\[ MC = 150 + Q \]The City A Council needs help to determine if they should regulate Firm A.**Questions:**a. Calculate the unregulated price of Good A in City A.b. The owner of Firm A argues that he charges “about the same” as the competitive price. Is this true?

In an unregulated market, the price and quantity are determined by the intersection of the market DD…

BN 6.3 (a) (b) Case: Firm A is the Owner of all the Good A Stores in City A. The Market Demand Curve for a Set of Good A is: P=300-Q The Marginal Revenue Curve associated with this Demand Curve is: MR-300-2Q The Firm faces Costs of: TC = 150Q+0.5Q² MC=150+ Q The City A Council needs help to determine if they should regulate Firm A? Questions: a. Calculate the Unregulated Price of Good A in City A? b. The owner of Firm A argues that he charges "about the same” : as Competitive Price. Is this True?

BN 6.3 (a) (b) Case: Firm A is the Owner of all the Good A Stores in City A. The Market Demand Curve for a Set of Good A is: P=300-Q The Marginal Revenue Curve associated with this Demand Curve is: MR-300-2Q The Firm faces Costs of: TC = 150Q+0.5Q² MC=150+ Q The City A Council needs help to determine if they should regulate Firm A? Questions: a. Calculate the Unregulated Price of Good A in City A? b. The owner of Firm A argues that he charges "about the same” : as Competitive Price. Is this True?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. The cost function for any potential firm in a manufacturing industry is C(y) = 2 + 8y + 2y? (if a firm exits the industry, then its cost is zero). The inverse market demand function is given by P(y) = 100 – 2y. (a) If there is only one firm in the industry (the firm is a monopolist), what is the optimal output and the markup of the firm in equilibrium?
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Assume inverse demand function for game console in an imaginary country is P=1200-4Q and the total cost function is TC=400+4Q². Government put $120 of specific tax on production. a. If the market is competitive what is the incidence of tax on consumer? b. If the market is monopolist what is the incidence of tax on consumer?
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******ONLY ANSWER PART 3 IN PICTURE PLEASE**** Demand for Thunder games in Oklahoma City is given by: P(0)=430-20 Seattle does not currently have an NBA team, but they would like to attract the the Thunder. ok ok ok Demand for Thunder games in Seattle is given by: P (Q) = 490 -20 The marginal cost of production in both cities is constant at MC = 70. Suppose that the Thunder faces an extra fixed cost of 10000 in Seattle because they need to build a new stadium if they move. If the Thunder decides to stay in Oklahoma City, they don't need to pay the fixed cost. Cities can still offer bids to attract the team. a) Will the Thunder move to Seattle? b) How much is the winning bid? c) What is the profit plus bid for the Thunder? d) What is the value minus bid for the winning city?
A market has a demand function given by theequation Qd = 180 - 2P, and a supply function isgiven by the equation Qs = -15 + P. The marketis government-regulated, with price support per unit and production quotas. (NOTE: A production quota restricts the quantity of the good that can be produced. Firms are not allowed to produce more than the quota)(a) If the price is $72 per unit, what production quota is needed to ensure no shortages or surpluses? (HINT: Sketch the supply and demand equations.)(b) Considering the price support and the quota, calculate(i) the consumer surplus,(in) the producer surplus,(In) deadweight loss,Due to good weather, there is an increase in the demand for the good. The new demand equationis Qd = 190 - 2P. The government is trying todecide between two options:• Maintain the number of quotas and let the market adjust, or• Maintain price support and increase the number of quotas.Crinnamathemarinenidanidan maintain Suppose the government decides to maintain the…
Please refer to the figure above. When MC is constant, the ATC is also constant. How much profit the monopolist will make?
Rubidoux Adventures supplies professional guides for climbs up Mt. Rubidoux. The company has two guides, Rocky and Cliff. Because Mt. Rubidoux is a pretty easy climb, the company has only two customers, Ken and Lucy. The table below shows the guides' marginal costs for each climb as well as the customers' MWTP for guided climbs. Use this table to answer the questions that follow. Assume that only whole climbs are available. MCRocky (S/climb) Climbs MCClff MWTPKen MWTPLucy (S/climb) (S/climb) (S/climb) 1 4 1 24 22 2 6. 23 21 3 7 4. 21 18 4 11 7 19 16 13 9 17 11 16 12 14 8 7 19 14 11 6 21 16 9 3 What is Ken's reservation price? O a. 22 Ob. 23 OC 24 O d. 21