MONOPSONY 1. Consider that in year 1, there is a Q = 350 and P = 20 and the value of the purchase for buyers is VT = 5,000 and for year 2 we have that Q = 390, the P = 22 and VT = 4,800. Determine: a.Total spending for both periods. b. VMg and GMg c. Net Profit for both periods. d. Marginal Net Profit. e. There is a profit maximization. VMg = GMg VT (Total value of the purchase) VMg (Marginal Value) GMg (Marginal Spending)

MONOPSONY 1. Consider that in year 1, there is a Q = 350 and P = 20 and the value of the purchase for buyers is VT = 5,000 and for year 2 we have that Q = 390, the P = 22 and VT = 4,800. Determine: a.Total spending for both periods. b. VMg and GMg c. Net Profit for both periods. d. Marginal Net Profit. e. There is a profit maximization. VMg = GMg VT (Total value of the purchase) VMg (Marginal Value) GMg (Marginal Spending)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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