A monopolistic competitor has the following information about cost and demand.Price ($)Total Cost ($)Marginal Cost($)QuantityTotal RevenueMarginalRevenue ($)AverageCost($)($)2525302244823352.517.5423922145511.256.2213219607.51082116817778.59.6310202001510011.5101219228131261310.514182521116519.511.7916172729.21022.513.13181628872602514.441530053203016If this industry was perfectly competitive, what price would the good sell for?$15$19$21$2320

In a perfectly competitive market there are large number of firms producing similar and identical…

Answered: Price ($) Quantity Marginal Revenue ($)…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Happyland is one of five amusement parks on Sunshine Island. The following graph shows Happyland's kinked demand curve (D₁ - D₂) and the resulting marginal revenue curve (MR₁ - MR₂). The graph also shows two possible marginal cost curves (MC₁ and MC₂). PRICE (Dollars per ticket) 24 22 20 18 16 14 12 10 8 6 4 2 0 0 MR₁ + + 1 2 D₁ + 3 5 7 8 9 QUANTITY (Millions of tickets per year) MR₂ 4 6 10 MC₁ MC₂ D₂ 1 11 12 (?) Assume Happyland's marginal cost is represented by MC2. Happyland will set a price of per ticket. its price, other firms will not follow suit, but if one firm its price, According to the kinked demand curve model, if one firm other firms will do likewise to retain their market share. Therefore, if one of Happyland's competitors decreases its price to below the price you just found for Happyland, Happyland will The basic principle behind the kinked demand curve model explains why the D₁ portion of the kinked demand curve is relatively D₂ portion. If Happyland's marginal cost…
Questión 10 óf 18 Holiday Beach is a world-renowned beach operated by Holiday Town. The beach is remotely located and the only parking area for the beach is controlled by the town government. The graphs depict the marginal revenue (MR) and demand (D) for daily parking passes for tourists and residents. Tourists Residents Price per day Price per day $20 $207 18 18 16 14 14 12 12 D 10 - 10 8 8 6 6 MR 4 4 MR 2 1 2 3 4 6. 7 8 9. 10 1 2 3 4 7 8 9 10 Quantity of passes Quantity of passes Suppose Holiday Town issues registration plates to its residents to make it easy to determine which cars belong to residents and which cars belong to tourists. Assume the marginal cost of providing a daily parking pass is a constant $4 and Holiday Town wishes to price discriminate. What price will town residents be charged for a daily pass? $ %24
4 ✓ 7 ✓ 10 ✓ 13 ✓ 19 ✓ 5 ✓ 22 8 ✓ 11 14 > 12 16 17 18 ✓ ✓ ✓ 15 A> 20 21 Y ✓ 23 24 5 6 7 8 Reference: Ref 13-12 (Table: Prices and Demand) Look at the table Prices and Demand. The New Orleans Saints have a monopoly on Saints hats, and we know that the Saints must charge the same price for every hat sold. The marginal revenue of the fourth unit is: A) $24. B) $16. C) $22. 20 18 16 14 D) -$2. Question 26 (Mandatory) (1 point)
Which of the following is a way to deter entry? OA. increase costs through legislation that affects only new entrants OB. obtain a patent so that others must license your invention OC. raise switching costs for customers that use your products OD. All of the above.
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?
(Figure: Pharmaceutical Pills Sales I) A pharmaceutical company sells its pills in foreign and domestic markets. Domestic Market Foreign Market Price ($) 20 Price ($) 20 18 18 16 16 14 14 12 12 10 10 8 8 6 6 MC MC 4 4 2 MR 2 D MR D 0 0 2 4 6 8 10 12 2 4 6 8 10 12 Quantity Quantity Suppose the company must charge the same price in each market. The profit-maximizing price is $ ○ 12 ○ 8.67 7.67 ○ 7.00
Please answer with explanations or procedures of the steps following questions i) ii) iii)
W ECON 2100 Compatibility Mode Home Insert Draw Design Layout References Mailings Review View Share O Comments 2. Line D represents the market demand curve for polo shirts; if the polo shirt market is perfectly competitive and MC represents the market supply curve. But if the shirts are produced by a single monopoly firm, MR represents the marginal revenue curve for a monopolist producer of polo shirts and MC represents the marginal cost curve for that monopolist. 48 44 40 36 32 MC 28 20 16 12 8 4 MR 4 12 16 20 24 28 32 36 40 44 48 Quantity of Polo shirts a. If the polo shirts are supplied by a perfectly competitive industry, what will be the output and price? (Please explain your answer.) b. If the polo shirts are supplied by a monopoly, what will be the output and price that the monopoly would choose? (Please explain your answer.) c. Please show on the graph the dead weight loss associated with monopoly price/quantity outcome? Page 2 of 4 639 words English (United States) Focus +…
16
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$4.00 $2.00 Price 300 (a) Firm 600 MC Quantity Given 100 identical firms, Q1= $4.00 $2.00 Price Q1 (b) Market MC Q2 Quantity and Q2=

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