Suppose a single firm produces all of the output in a contestable market. Analysts determine that the market inverse demand function is P= 450 -8Q, and the firm's cost function is qQ) = 12Q. Determine the firm's equilibrium price and corresponding profits. Price: $ 231 8 Profits: $ 595 8

Suppose a single firm produces all of the output in a contestable market. Analysts determine that the market inverse demand function is P= 450 -8Q, and the firm's cost function is qQ) = 12Q. Determine the firm's equilibrium price and corresponding profits. Price: $ 231 8 Profits: $ 595 8

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: How does incorporating the tax benefit of depreciation affect the equilibrium rent a landlord will…

A: The housing market refers to the buying, selling, and renting of residential properties, including…

Q: 3. Suppose in a certain city the demand for low-cost housing can be characterized by the equation P…

A: (Note: Since the question has multiple parts, only one has been solved. Please resubmit the question…

Q: There is a bar on Off‐Main Street called the Rock‐n‐Roll Bar. All the people that go to that bar…

A: With the existence of a transaction cost of $90 which has to be split between the two that is $45…

Q: A restaurant sells juices for R$8.00 and sandwiches for 12.00. The monthly fixed costs with salaries…

A: Price of juice = $8 Price of sandwich = $12 Since whoever buys juice eats a sandwich; Meal(Q) =…

Q: The term used to describe the credit available to a donor to offset the gift tax is called the…

A: The applicable credit amount is a term used in the context of gift and estate taxes in the United…

Q: 19. Refer to Table 1 given below. Suppose that you have a house that you rent out. If you keep the…

A: The benefit of maintaining the lawn must be greater than the opportunity cost of wages you are…

Q: Housing Prices Consider a 1,500 square foot house, which rents monthly for $0.75 per square foot.…

A: Given information, the-square-foot house, which rents monthly for $0.75 per square foot. Prevailing…

Q: The South Korean Government in the 1970s decided to follow a strategy of increased investment in…

A: Scarcity refers to the limited availability of resources, that are used to produce goods and…

Q: EXERCISE-8 PRESENT ECONOMY 11. The gross margin of a corporation is 45% of sales. Operating expenses…

A: Profit is defined as a reward to be kept by an entrepreneur for undertaking all the risks of a…

Q: How does the Overnight Rate Target inuence interest rates throughout the economy? (A) The…

A: The overnight rate basically refers to the interest rate at which a depository institution (usually…

Q: Assuming a $6 per unit tax is imposed, what will be the quantity traded? (a) 4 (b) 8…

A: Whenever the government imposes a tax on a product, the production cost of that product increases.…

Q: Suppose you have a balance of $13000 on your VISA card, which has an APR 24% and requires a minimum…

A: Annual Percentage Rate refers to the yearly interest on investments or yearly cost of loans. It is…

Q: 2. Under what circumstances should taxpayers itemize deductions? Explain.

A: Definition: An itemized deduction is a cost that can be deducted from changed gross pay (AGI) to…

Q: (1) nicol's 2013 income was $ 51,309. she is single and claims 2 exemptions and take the standard…

A: Given: Nicol's 2013 income was = $ 51,309 The 2013 tax exemption is = $3,900 The standard deduction…

Q: An individual owns a life insurance policy with an investment in the contract of $75,000 and a cash…

A: The protection from financial loss resulting from certain circumstances is referred to as insurance.…

Q: . A company has a total sales revenue of 29 000 euros a month. The fixed costs of this company are…

A: Given information Total sales revenue=29000 per month Fixed cost=11400 per month Net income=4600 per…

Q: A bottle of wine costs $14.00 and yields 5 ‘by the glass’ servings. To have a 25% FC what would I…

A: Price can be calculated by using the following formula.

Q: Items A B C D E 2004 Price (₹) 15 33 38 25 50 Qty. 30 35 57…

A: Given: Items Price…

Q: A certain beverage company provides a complete line of beer, wine, and soft drink products for…

A: Price relative is the ratio between the price of a product in one period and its price in another…

Q: 10. Insurance is a profitable activity, as: a) prevents the risk; b) combines the risk of a large…

A: Loss ratio is being used in the insurance industry which represents the ratio of losses to premiums…

Q: 10. The Hastlehoff family took 5% hours to gather information for their Schedule A. The itemized…

A: Saving is income that is not spent, or conceded consumption. The portion of income isn't utilized…

Q: •Are there trends in the types of agencies that exist? •Find a state environmental agency in a…

A: There are a number of trends in the types of environmental agencies that exist. These trends…

Q: Which one of the following represents the presentvalue of the interest tax shield?a. D/ (1 T)b. lc…

A: The present value of the interest tax shield refers to the value today of future tax savings that a…

Q: Cars produced each day A specialty-car manufacturer has plants in Auburn, Biloxi, and Chattanooga.…

A: a) Calculating AB: AB = 1210044208912…

Q: Which of these is the tenant's responsibility? Taking reasonable care of the property, giving notice…

A: a person who gives money to the owner of a room, flat, house, or piece of property in order to…

Q: 4. The change in consumer surplus as a result of the shift in the graph below is equal tor (a) 1050…

A: Consumer surplus is the area below the demand curve and above the equilibrium price level.

Q: A period between date of acquisition and date of disposal by a specific owner. a. Ownership life O…

A: Aquisition date means when the asset is purchased new . And the period between acquisition and…

Q: A member must at all times b member's trust obligations fr Money in the member's trust account. The…

A: The inquiry focuses on the subject of financial responsibility and trust obligations in a particular…

Q: Which term is used to describe the net value of one's accumulated assets? O a) income O b) capital…

A: Accumulated assets or asset accumulation is building wealth over time by earning, saving and…

Q: Government-imposed taxes cause reductions in the activity that is being taxed, which has important…

A: There are many sub-parts of the question. As per honor code, we can only provide solution of first…

Q: There is a bar on Off‐Main Street called the Rock‐n‐Roll Bar. All the people that go to that bar…

A: Since the property rights are with the tenants, the bar owners will compensate the tenants for the…

Q: 3. Law borrowed $2000 from Rence at 8% per annum. After 6 year he cleared the amount by giving $2600…

A: Here, given information is, Law borrows (P): $2000 Interest rate (r): 8% per annum Time period (n):…

Q: calculate sum of the residuals

A: We have given five observation. The regression equation Y^=α^+β^X^ ....(1) The residual is…

Q: 1. Relationship of data usage and bill Data Usage(GB/month) 0 10 20 30 Bill($/month) 10 30 50 70 A.…

A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: There is a bar on Off‐Main Street called the Rock‐n‐Roll Bar. All the people that go to that bar…

A: By Assuming that the bar owner has the right to hire as many bands as she likes. She will obviously…

Q: A $700 laptop has 10% tax. Find the total amount due.

A: The value of laptop = $700 The tax rate = 10%

Q: There is a bar on Off‐Main Street called the Rock‐n‐Roll Bar. All the people that go to that bar…

A: Since the transaction cost is missing and there is a predefined property right with the tenants,…

Q: Figure A Figure B Figure C Price (dollars per unit) 157 Price (dollars per unit) 15 14- 13- Price…

A: There are four types of market structures: Perfect Competition: The market in this type of…

Q: Jose buys a motorcycle for 125,000 and plans to keep it for 10 years after which it will be sold for…

A: cost = 125,000 n = 10 years depreciation = 10,500

Q: (e) (iii) Tax revenue. Answer:

A: Tax Revenue is calculated by multiplying the equilibrium quantity sold after tax with the amount of…

Q: A79. Which of the following is the most likely consequence of implementing the ‘Unified Payments…

A: The Unified Payments Interface (UPI) is a real-time payment system that allows mobile devices to…

Question

Suppose a single firm produces all of the output in a contestable market. Analysts determine that the market inverse demand function
is P= 450 -8Q, and the firm's cost function is CQ) = 12 Q. Determine the firm's equilibrium price and corresponding profits.
Price: $
231 *
Profits: $
595 *

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Plsss answer a and b
63
1.A property costs $1,000 today. If it is apreciating at a rate of 5%, calculate its price in 5 years.
3 Calculate the income taxes that a person has to pay considering the table below- If a person's income is $6,500, how much does he pay in taxes? If a person's income is $13,500, how much does she pay in taxes? (a) (b) Taxable Up to $5,000 $5,001-$10,000 $10,001-$15,000 Income Taxes 10% of taxable income 14% of taxable income 16% of taxable income
Laila’s Surveying Inc. had revenues of $1.5 million in 2016. Expenses totaled $900,000. What was her net profit (or loss) if the tax rate is 38%?
5 measures taken by the government of Cameroon to ensure the sustainability of minerals and energy resources in Cameroon
Solve the attachment.
1. Solve the following equations: 2. A firm charges a fixed price of £80 for each shirt sold. The firm has a total cost functi (a) x²-25=0 (b)x² + 20x=0 (c) x² - 40x + 14 = 0 Q³-1360. (a) Write down the equation of the total revenue function. (b) Determine the break-even point. . (a) Simplify to a single term (i) 2 log(x) -log(2x) (ii) e³e-¹5-1
Price of X = $2 Income $24 = Price of Y=$4 Qx TUX MUX MUx/Px Qy TUY MUY MUy/Py 1 24 24 2 46 24 24 12 1 40 040 10 2 72 3 20 20 3 100 4 A 9 4 5 dings 5 100 16 5 16 4 6 114 6 144 es The correct value for the blank labeled A is
7 Evaluate the different ways in which a government might be able to improve access to the housing market. Use relevant graphical analysis.
COURSE: MICROECONOMICS - TAX REGULATIONS The local diesel market is represented by Q = (912 - P)/12.5 and Q = (P - 315)/11where P is in dollars (USD) per liter of fuel and Q shows liters of fuel (in millions). Currently a tax of USD 130 per liter of diesel is charged.It is requested:(a) Calculate the amount (Q) that is transacted after the tax has been applied.b) Show in detail the calculations of a). Is there any difference between the price observed by suppliers and demanders? If so, what is the price observed by the producer and what is the price observed by the consumer? how much is the government's revenue? If there is an efficiency loss, how much is it? GRAPHc) At present, there are arguments in favor of increasing the tax on diesel and others in favor of decreasing it (at least temporarily). Mention at least ONE argument in favor of increasing this tax and ANOTHER argument in favor of decreasing it. And finally, conclude in favor of which argument you are in favor of.