How much are consumer surplus and producer surplus

Assignment Help Business Economics
Reference no: EM131167321

A monopolist faces the following demand curve: P = 100 - 3Q, its total cost is given by: TC = 100 + Q2 and its marginal cost is given by: MC = 2Q.

If it is a single price monopolist, what is its profit maximizing price and quantity? Show your work. How much is the profit? How much are consumer surplus and producer surplus?

Reference no: EM131167321

Questions Cloud

Production process employs two inputs labor-raw materials : A certain production process employs two inputs labor (L) and raw materials (R). Output (Q) is a function of these two inputs and is given by the following relationship: Determine the total product function (TPL) for input L. Determine the marginal p..
What is this manufacturer fixed cost : What is this manufacturer's fixed cost? For each level of output except zero output, calculate this manufacturer's marginal cost (MC). For each level of output except zero output, calculate the variable cost (VC)
Discuss clinical considerations of the addictive substance : Description of Substance/Behavior: In this section, describe the biological aspects of the addictive substance or behavior. Your discussion should explain the addictive properties and include its primary effects on the brain and other organ syste..
What is its profit maximizing price and quantity : A monopolist faces the following demand curve: P = 100 - 3Q, its total cost is given by: TC = 100 + Q2 and its marginal cost is given by: MC = 2Q. If it is a single price monopolist, what is its profit maximizing price and quantity? Show your work. H..
How much are consumer surplus and producer surplus : A monopolist faces the following demand curve: P = 100 - 3Q, its total cost is given by: TC = 100 + Q2 and its marginal cost is given by: MC = 2Q. If it is a single price monopolist, what is its profit maximizing price and quantity? Show your work. H..
What price will firm set : Consider the following two-stage game. At time 1, an incumbent firm (Firm 1) chooses its price (p1). Take p1 as given. Conditional on entering, what price will firm 2 set? For what values of p1 will Firm 2 enter
Long-run equilibrium output level of representative firm : All firms in a competitive industry have long-run total cost curves given by LTC(Q) = Q3 – 10Q2 + 36Q where Q is the firm’s level of output. What will be the industry’s long-run equilibrium price? What will be the long-run equilibrium output level of..
What are the total profits for the two periods : Take your answer to (a) as the amount produced in period 1 and solve for the production level in period 2 that maximizes period 2 profits. What are the total profits for the two periods
Calculate firms production levels and profits : Assume market demand is given by P=a-Q. Suppose there are two firms (1 and 2) that engage in Cournot competition. Firm 1's marginal cost of production is 1 while firm 2's marginal cost of production is c. Calculate firms' production levels and prof..

Reviews

Write a Review

Business Economics Questions & Answers

  Theory of economic behavior on the actual mental processes

Why do behavioral economists consider it helpful to base a theory of economic behavior on the actual mental processes that people use to make decisions? Why do neoclassical economists not care about whether a theory incorporates those actual mental p..

  Shift the demand curve for a normal good to the right

Which of the following is likely to shift the demand curve for a normal good to the right? Which of these is likely to decrease the supply of leather jackets? Which of the following will indicate a shortage of a product in the market to suppliers?

  What happens to total market supply as n goes to infinity

Demand is linear: p= A-by; cost is cy (marginal cost is c). What is oligopoly price and quantity when there are players? What happens to the total market supply as n goes to infinity?

  Compute effects of an appreciation and a depreciation

Compute effects of an appreciation and a depreciation in the exchange rate on the price of its output in that country and the likely effects on the demand for its output.

  Foreign business activities more complex-purely domestic

Why are purchasing power parity numbers more meaningful than nominal numbers when comparing GDP's of different countries and GDP of people living in different countries? Why are foreign business activities more complex than purely domestic ones? What..

  Explain how low must a quota be in effect to have an impact

Explain how low must a quota be in effect to have an impact. Using a demand-and-supply diagram, illustrate and explain the net welfare loss from imposing such a quota.

  Value of the marginal product of labor exceeds the wage rate

If the value of the marginal product of labor exceeds the wage rate, then a competitive, profit-maximizing firm would want to hire less labor. A competitive, cost-minimizing firm has the production function f (x,y)= x+ 2y and uses positive amounts of..

  Strategy to replace strategic alliances

If adverse selection, moral hazard, and holdup are such significant problems for firms pursuing alliance strategies, why do firms even bother with alliances? Why don’t they instead adopt a “go it alone” strategy to replace strategic alliances?

  The short-run price elasticity of demand for tires

The short-run price elasticity of demand for tires is 0.90. The mid-point formula was used for this calculation. The price elasticity of demand for gizmos is known to be 1.0 (in absolute value). Mark is selleing gourmet apples at a price of $2 per po..

  Result of the production subsidy

The nation of Acirema is “small” unable to affect world prices. It imports peanuts at a world price of $10. Now suppose Acriema imposes a production subsidy of $2 per unit produced by Acriema’s firms. Calculate and graph the new equilibrium with the ..

  What is the market interest rate

Assume that the 12% rate used in problem 2 is a constant dollar rate (i’). Now discount your end of year cash flows from problem 10 by inflation (f=4%) and re-compute your IRR’ and NPW’. What is the market interest rate (i)______________ IRR’________..

  Open golf championship was held

In 1907, the first U.S. Open Golf Championship was held. The winner’s prize money was $270. In 2012, the winner’s check was $1,470,000. Requirement 1: What was the annual percentage increase in the winner’s check over this period?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd