Consider a duopoly market with volume competition. The demand is given by P = 120-Q. P isthe price and Q is the quantity.The total costs of company 1 are TK1 = 45Q1 and the total cost of Company 2 is alsoTK2 = 45Q2Do you calculate the amount provided by company 1 for this type of market?Answer:

In order to find the quantity produced by company 1, we just need to find the level of Q1 that…

Answered: Consider a duopoly market with volume…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A firm with market power can divide its sales into two submarkets, the demands and marginal revenues of which are shown in the following diagram. $ Price, marginal revenue, and marginal cost (dollars) 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0 5 10 MRA 15 MRB 20 Quantity 25 DA 30 35 MC = ATC DB 40 (a) How many quantities of output should the firm produce? 1 45 Q (b) How many quantities should be sold to market A? How many quantities should be sold to market B? What price should be charged in each market? (c) Calculate the price elasticities at the prices charged in each submarket. Do these price elasticities have the expected relative magnitudes? Explain. (d) What is the amount of profit generated by the firm?
asap please
The demand curve facing a monopoly firm is given by P=200-5Q a) What is the maximum revenue the firm can earn? b) What is the marginal cost when the profit maximizing quantity is 15? c) What is the profit maximizing quantity when the marginal cost is increased to K100? d) At a quantity of 10, what is the percentage change in demand when the price is increased from K150 to K151.5?
please explain in steps
Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 10 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output since this is the industry supply curve.) Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 15 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 20 firms. PRICE (Dollars per pound) 100 90 80 70 80 50 40 30 20 10 0 0 125 250 375 500 825 750 875 1000 1125 1250 QUANTITY (Thousands of pounds) Demand Because you know that competitive firms earn Supply (10 firms) True Supply (15 firms) If there were 10 firms in this market, the short-run equilibrium price of rhodium would be $ would . Therefore, in the long run, firms would False Supply (20 firms) per pound. From the graph, you can see that this means there will be ? per pound. At that price,…
Consider a competitive industry with a market demand curve of P = 121 – Q, where P is market price and Q is the quantity demanded in the market. In the short run there are 4 firms in the industry, and each firm has a total cost function of TC = 25 + 6q + q2, where q is output of the individual firm. In the long-run market equilibrium what is the number of firms in the industry? Group of answer choices 26 15 5 110 21
Sid is the CEO of a local power plant operating in monopoly market structure. Explain why the demand curve (P) here is larger than the MR, and why Sid won’t produce on the inelastic portion of demand curve. Draw a graph comparing Sid’s market structure with a market in perfect competition (on the same graph). Be sure to label the components of deadweight loss. On a separate graph, show the case where the monopoly is making a positive profit and label the profit area.
In a small town there is only one movie theater. If the theater is open, the owners have to pay a fixed amount of $6,000 for the films, ushers, etc., regardless of how many people come to the movie. For simplicity, assume that if the theater is closed, its costs are zero. The demand function for movies in the town is characterized by A = 45-T 60 a. Graph the market demand curve, the marginal revenue curve, and the marginal cost curve. Label the axes, curves, and intercepts. b. Find the profit-maximizing price and quantity of movie tickets, and indicate them on the graph. How much would the theater make in profits? c. Calculate deadweight loss caused by the monopoly and indicate the area on the graph. |
Suppose a perfectly competitive industry can produce a product with total cost TC = Q? and the market demand for the product is given by Q = 120 - Suppose that the same market can be served by a monopolist operates with the same cost and demand functions. How does the consumer surplus change due to monopoly relative to perfect competition? It falls by 2000 It does not change It falls by 1600 It falls by 1200
Natural monopolies often occur because of huge economies of scale. is this true or false
Could you answer the red highlighted part please
Analyze graphically the difference between monopoly and perfectly competitive market

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