Monsanto holds significant regional monopoly power-in some regions they are a true monopoly being the only seller of agriculture seeds. If the elasticities of demand, JEDI, for soybean seeds is 3.5, and 3 for corn, then the profit-maximizing price (relative to marginal cost) for soybeans is times marginal cost, and the price is times marginal cost for corn. Round to one decimal if needed. A Moving to another question will save this response. « < Question 5 of 6 > >

Monsanto holds significant regional monopoly power-in some regions they are a true monopoly being the only seller of agriculture seeds. If the elasticities of demand, JEDI, for soybean seeds is 3.5, and 3 for corn, then the profit-maximizing price (relative to marginal cost) for soybeans is times marginal cost, and the price is times marginal cost for corn. Round to one decimal if needed. A Moving to another question will save this response. « < Question 5 of 6 > >

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

For problems 1 – 4: The Dolan Corporation, a maker of small engines, determines that in 2019 the demand curve for its product is P = 2,000 - 50Q where P is the price (in dollars) of an engine and Q is the number of engines sold per month. To sell 30 engines per month, what price would Dolan have to charge? A.4500 b.1000 c.500 d.450
Suppose the Chinese rare earth's monopoly is broken up and the rare earth's to increase industry becomes perfectly competitive. We would expect the from the breakup and to decrease from the breakup. O A. producer surplus; consumer surplus and total surplus B. consumer surplus; producer surplus and total surplus OC. consumer surplus and total surplus; producer surplus OD. producer surplus and total surplus; consumer surplus
do fast
At Temple of the Emerald Buddha, Bangkok, on a daily basis, there are two groups of customers: Foreigners and Thais and their groups’ demand equations for tickets per day are identified by business economists who work for the Temple as the followings: qforeigners= 400-5Pforeigners qthais= 200 - 5Pthais Given that the daily fixed cost for the Temple is 900 Baht. Daily marginal cost is constant at 10 Baht for serving a foreigner while daily marginal cost is constant at 4 Baht for serving a Thai. 1. Suppose the Temple’s current strategy is charging customers same price of 25 Baht for a ticket, how many tickets do the Temple sell per day? and how much profits do the Temple make per day? Show the process on how you get the answers 2. Continuing from (1.) above, explain in words, would there be a better strategy for the Temple? Can the temple implement the strategy? why? 3. Suppose the Temple adopt the strategy discussed in (2.) causing the…
The Placebo Drug Company holds a patent on one of its discoveries. Assuming that the production of the drug involves rising marginal cost, draw a diagram to illustrate Placebo’s profit-maximizing price and quantity. Also show Placebo’s profits. (10 points) Now suppose that the government imposes a tax on each bottle of the drug produced. On a new diagram, illustrate Placebo’s new price and quantity. How does each compare to your answer in part (a)? (10 points) Although it might not be easy to see in your diagrams, the tax reduces Placebo’s profit. Explain why this must be true. (5 points) Instead of the tax per bottle, suppose that the government imposes a tax on Placebo of £110,000 regardless of how many bottles are produced. How does this tax affect Placebo’s price, quantity and profits? Explain. (Hint: Additional unit produced won’t affect the tax amount). (10 points)
4
When would a monopoly shut down? Select one: O a. never, because it can raise its prices as high as necessary to keep operating and maximize profits O b. if the average variable cost is above its short run price O c. if the average cost is less than price O d. If the short run price is below its average fixed costs
Question 14 of 30 What is a natural monopoly? A monopoly that faces a high fixed cost and low marginal costs so that the average total cost curve slopes downward. A market in which there is only one firm. A monopoly resulting from one firm's exclusive ownership of a natural resource required to produce a good. O A monopoly that results from government issuing patents. Which of the firms is most likely to be a natural monopoly? O A firm that owns nearly all of the diamond mines in the world. A restaurant that is unable to practice price discrimination and must charge all consumers the same price. O Municipal Power Light, the local supplier of electricity. A pharmaceutical company that has the exclusive right to sell a patented drug. 46°F a
The Private Express Statutes, passed in 1792 and (in amended form) still in effect today, contain federal civil and criminal laws relating to the delivery of mail. The statutes grant monopoly powers to the U.S. Postal Service. Given the technology available today, the average effect of this monopoly on the price and quality of mail service in the populated parts of the United States is that the __ because of the monopoly privilege of the USPS. O price is higher and the quality of service is lower O price is lower and the quality of service is higher O price and quality of service are lower O price and quality of service are higher
help
Serena is profit-maximizing monopolist selling of her own patented perfume, whose demand and marginal cost curves are as shown. 1. Serena is profit-maximizing monopolist selling of her own patented perfume, whose demand and marginal cost curves are as shown. Relative to the consumer surplus that would result at the perfectly competitive quantity and price, how much consumer surplus is lost from her selling at the monopolist's profit-maximizing quantity and price? $ per ounce 60 50 45 40 30 20 15 10 0 468 12 16 Ounces/day MC D 24 2. In the first problem, how much total surplus would Serena have made if she acted as a perfectly price-discriminating monopolist? Show your work. 3. Explain the difference between the demand curve faced by a perfectly competitive firm and the demand curve faced by a monopoly. Draw both curves and explain why they are different. How do these demand curves cause marginal revenue to differ across the two types of firm? 4. Explain the incentives created by…
Only typed answer