(d) How many kilos of coffee should Dalia roast if she wants to maximize her profits? Give your answer to within one decimal place (e.g. 4.1). Make : round correctly. To within one decimal place (e.g. 2.3), she will produce A kgs of coffee to maximize profits. (e) To within one decimal places (e.g. 7.1), How much profit does she make? Make sure you round correctly. She makes £ of profit. 截图(Alt + A) (1) How many kilos would she produce and what price would she charge if the corree market was perfectly competitive? Give your answer to within one decimal place (e.g. 11.4). She would make kg of coffee and charge £ per kg.
(d) How many kilos of coffee should Dalia roast if she wants to maximize her profits? Give your answer to within one decimal place (e.g. 4.1). Make : round correctly. To within one decimal place (e.g. 2.3), she will produce A kgs of coffee to maximize profits. (e) To within one decimal places (e.g. 7.1), How much profit does she make? Make sure you round correctly. She makes £ of profit. 截图(Alt + A) (1) How many kilos would she produce and what price would she charge if the corree market was perfectly competitive? Give your answer to within one decimal place (e.g. 11.4). She would make kg of coffee and charge £ per kg.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
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Chapter11: Price And Output Determination: Monopoly And Dominant Firms
Section: Chapter Questions
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Question
![Dalia owns a small coffee roasting firm in Manchester. She is in a monopolistically competitive market and so has some market power. The inverse demand
function that she faces is given by
P=21 - 0.7 Q
where P is the price per kilo and Q is the kilos of coffee demanded and her total costs are given by
TC = 18 + 12 Q + 0.3 Q?
(a) What is the marainal revenue funotion of this](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcb287f3b-e750-43d0-8884-53a8ea5b78a9%2Fadb32914-837f-4618-8852-50cf4c466c5f%2Fkdkk6uc_processed.png&w=3840&q=75)
Transcribed Image Text:Dalia owns a small coffee roasting firm in Manchester. She is in a monopolistically competitive market and so has some market power. The inverse demand
function that she faces is given by
P=21 - 0.7 Q
where P is the price per kilo and Q is the kilos of coffee demanded and her total costs are given by
TC = 18 + 12 Q + 0.3 Q?
(a) What is the marainal revenue funotion of this
![(d) How many kilos of coffee should Dalia roast if she wants to maximize her profits? Give your answer to within one decimal place (e.g. 4.1). Make sure you
round correctly.
To within one decimal place (e.g. 2.3), she will produce
EE kgs of coffee to maximize profits.
(e) To within one decimal places (e.g. 7.1), How much profit does she make? Make sure you round correctly.
She makes £
of profit.
截图(Alt + A)
(f) How many kilos would she produce and what price would she charge if the coffee market was perfectly competitive? Give your answer to within one
decimal place (e.g. 11.4).
She would make
S kg of coffee and charge £
per kg.
(g) Calculate the social cost (deadweight loss) of Dalia's market power (hint: its the area of a triangle). Give your answer to within one decimal place (e.g.
1.3).
The deadweight loss is £
固國面。](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcb287f3b-e750-43d0-8884-53a8ea5b78a9%2Fadb32914-837f-4618-8852-50cf4c466c5f%2Fedjnvhi_processed.png&w=3840&q=75)
Transcribed Image Text:(d) How many kilos of coffee should Dalia roast if she wants to maximize her profits? Give your answer to within one decimal place (e.g. 4.1). Make sure you
round correctly.
To within one decimal place (e.g. 2.3), she will produce
EE kgs of coffee to maximize profits.
(e) To within one decimal places (e.g. 7.1), How much profit does she make? Make sure you round correctly.
She makes £
of profit.
截图(Alt + A)
(f) How many kilos would she produce and what price would she charge if the coffee market was perfectly competitive? Give your answer to within one
decimal place (e.g. 11.4).
She would make
S kg of coffee and charge £
per kg.
(g) Calculate the social cost (deadweight loss) of Dalia's market power (hint: its the area of a triangle). Give your answer to within one decimal place (e.g.
1.3).
The deadweight loss is £
固國面。
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