Microeconomics1. The following shows the demands and marginal revenue in two markets (D1 and MR1, andD2 and MR2) for a price discriminating firm along with total demand, DT, marginal revenue,MRT, and marginal cost MC.450D24254003753503253002752502252001751501251007550250MR20D1250MR1500750 1000MRTMC1250 1500 1750MR22000 2250 2500MCMRT- D1 ---MR1 --D2As with the PPT slides, you can view the data generating these lines; for reference,D1 = 300 -0.1QD2 = 450 0.1QMRT = 375 -0.1QDT=375 -0.05QMC = 0.00017Q^2-0.35Q+291.875a. Compare the demand conditions in each market; i.e. how do the two markets differ in theirdemand for the firm's product?b. How much total output should the firm produce (for both markets combined)? How shouldthat output be allocated between markets 1 and 2?c. What price should the firm charge in each market?DT27503000MC

In microeconomics, demand refers to the quantity of a good or service that consumers are willing and…

Microeconomics 1. The following shows the demands and marginal revenue in two markets (D1 and MR1, and D2 and MR2) for a price discriminating firm along with total demand, DT, marginal revenue, MRT, and marginal cost MC. 450 425 400 375 350 325 300 275 250 MR2 D2 D1 MRT MC

Microeconomics 1. The following shows the demands and marginal revenue in two markets (D1 and MR1, and D2 and MR2) for a price discriminating firm along with total demand, DT, marginal revenue, MRT, and marginal cost MC. 450 425 400 375 350 325 300 275 250 MR2 D2 D1 MRT MC

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In order for a firm to engage in price discrimi- nation, it must be Group of answer choices a. experiencing constant marginal cost b. a price taker c. producing in the inelastic portion of its demand curve to raise its price and increase total revenue d. experiencing economies of scale in the relevant range of production e. able to separate consumers into different groups based on demand elasticities
Price and cost (dollars) 50 40 30 20 ATC 10 MC MR 10 20 30 40 50 Quantity (thousands of households) The above figure represents the market for cable television in Oakland, Florida. Time Warner Communications (TWC) is the sole provider of cable television to the residents of this Central Florida community. If TWC operated under an average cost pricing rule, how many households in Oakland are served? 20,000 30,000 10,000 40,000
2. Calculating marginal revenue from a linear demand curve The blue curve on the following graph represents the demand curve facing a firm that can set its own prices. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph. Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. PRICE (Dollars per unit) 160 TOTAL REVENUE (Dol 140 120 2250 2000 1750 1500 1250 On the graph input tool, change the number found in the Quantity Demanded field to determine the prices that correspond to the production of 0, 10, 20, 25, 30, 40, and 50 units of output. Calculate the total revenue for each of these production levels. Then, on the following graph, use the green points (triangle symbol) to plot the results. 1000 750 500 250 0 5 10 15 20 25 30 35 40 45 50 QUANTITY (Units) 200 Demand 10 120 -40 15 30 35 QUANTITY (Number of units) 45 Graph Input Tool…
Price Panel B D KEL Quantity Price Price Panel A D Quantity Panel D D Quantity Price Panel C All the answers are correct. D Quantity Use the figure above. Which of the following statements is correct? O Panel B represents the typical demand curve for a perfectly competitive firm. O Panel A represents the typical demand curve for a perfectly competitive market. O Panel A represents the typical demand curve for a monopoly.
Costs and revenue per case 50% a $14 $12 $22 $16 $13 Question 6 Costs and revenue 22 24 30 30 @ 300 The perfectly competitive price would be: MR 22 24 30 3 ATC Demand Quantly (cases) ATC Demand Quantity In the above graph, the firm would earn: $0 in economic profit and break even $44 economic profit $88 economic profit $22 economic loss $44 economic loss
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2. The demand curve facing a competitive firm The following graph illustrates the market for small moving trucks in Waco, TX, during Baylor's fall move-in week. PRICE (Dollars per small truck) 100 90 80 70 60 50 8 40 30 20 10 0 0 0 Demand 1 1 2 3 2 3 5 6 7 QUANTITY (Hundreds of small trucks) Suppose that You Yeet is one of over a dozen competitive firms in the Waco area that offers moving truck rentals. Based on the preceding graph showing the weekly market demand and supply curves, the price YouYeet must take as given is $ Fill in the price and the total, marginal, and average revenue YouYeet earns when it rents 0, 1, 2, or 3 trucks during move-in week. Quantity Price Total Revenue Marginal Revenue Average Revenue (Dollars) (Dollars) (Dollars per truck) (Trucks) (Dollars per truck) Supply curve Supply 9 Average revenue curve Marginal cost curve 10 0 Marginal revenue curve The demand curve faced by YouYeet is identical to which of its other curves? Check all that apply.
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1) What is total fixed cost at the profit-maximizing quantity? 2) Below what price will the firm shut-down? 3) What are operating losses / profit (If the firm does not shut-down)?
A Quantity Demanded Figure 1 Quantity Demanded Figure 2 For a perfectly competitive firm, which line or lines represent the firm's demand and marginal revenue curves lines B and C respectively in figure 2 lines A and C respectively in figure 2 lines A and B respectively in figue 1 line B only in figure 1 Price, Marginal o Revenue, Total Revenue B. Price, Marginal o Revenue, Total Revenue
The figures below show (on the left) two possible demand curves and (on the right) two possible supply curves in the perfectly competitive hamburger market. Price per hamburger 0 A B D₂ D₁ Hamburgers per month Price per hamburger 0 Select one: a. Movement along D₁ from Point A to Point B. b. Demand shifts from D₁ to D₂. F c. Movement along S₁ from Point F to Point G. d. Demand shifts from D₂ to D₁. G Hamburgers per month Assume that people consume either hamburgers or hot dogs. What will be the result of a decrease in the price of hot dogs? Hint: Are hamburgers and hotdogs complements or substitutes? S₂ S₁