Market for qbits is initially competitive and market demand

Assignment Help Business Economics
Reference no: EM13802155

The market for qbits is initially competitive and the market demand is: P = 400 - 0.4Qd. The combined marginal costs of the firms in the qbit industry are: MC = 50 + 0.6Q.

a. Draw the demand, and marginal cost curves. Calculate and show how much these firms will sell and what they will charge.

b. Now a bunch of other firms buy out all of the qbit producers and create a cartel (their combined MC doesn’t change). How much will the cartel produce? What price will they charge? (Draw any necessary new curves on your graph above).

c. Is there any DWL associated with the cartel? If so, how much?

d. Now suppose one big firm comes and buys out all of the firms in the cartel. This monopoly somehow miraculously is able to perfectly price discriminate. How much will this firm produce? What will be the deadweight loss created by this monopoly?

Reference no: EM13802155

Questions Cloud

Why are companies moving toward on-demand solutions : Based on Trebilcock's (2007) article, why are companies moving toward on-demand solutions? Explain the advantages and disadvantages. Which would you prefer and why
What is the equilibrium quantity of laptops : Consider the market for laptop computers. The demand for laptops is Q = 1800 – 3P. Suppose the supply of laptops is given by Q = –200 +2P. What is the equilibrium price of laptops? What is the equilibrium quantity of laptops? What is the price elasti..
Discuss this issue in terms of the five stages : Choose a current policy issue. Discuss this issue in terms of the five stages of the policy-making process. Provide a fully developed essay of at least 500 words no more than 600 words, and cite sources used.
Describe your feeling about the poem the fog : In carl sandburgs "The fog" Describe your feeling about the fog in this poem. What characteristics does he give it?
Market for qbits is initially competitive and market demand : The market for qbits is initially competitive and the market demand is: P = 400 - 0.4Qd. The combined marginal costs of the firms in the qbit industry are: MC = 50 + 0.6Q. Draw the demand, and marginal cost curves. Calculate and show how much these f..
Uses of statistical information : Uses of Statistical Information
Identify an organization that you would like to research : Identify an organization that you would like to research for your organizational development model. Your paper should include the following: The name of organization and your initial review and assessment of the organization.
Depression experiences of mexican- and african-americans : In what ways were mobilization and the war effort a fulfillment of the progressive legacy. In what ways did the war deny the basic tenets of progressivism. Depression experiences of Mexican- and African-Americans
How many point-to-point wans are needed : How many point-to-point WANs are needed to connect n LANs if each LAN should be able to directly communicate with any other LAN

Reviews

Write a Review

Business Economics Questions & Answers

  Quantity of output demanded at every price level

If the quantity of output demanded at every price level increases by $1 trillion, Illustrate what happens to equilibrium output also prices.

  How can the organization use technology to change

Describe the balance of fixed and variable costs for the organization. How can the organization use technology to change this balance for an advantage.

  Marginal rate of substitution of leisure for consumption

Tom gains utility from consumption C and leisure L. The most leisure she can consume in any given week is 112 hours. His wage is $20. His utility function is U(C,L) = C^3/4*L^1/4. Tom receives 640 each week from her great-grandmother. What is the mar..

  Elucidate using economic terms

Illustrate what would happen if too more labor is hired without an addition to capital. Elucidate using economic terms.

  Reserve requirements of top commercial banks

The People's Bank of China, the country's central bank, raised the reserve requirements of its top commercial banks to put a squeeze on the credit market

  Increase number of years-firm can enjoy patent protection

What would happen if the government chooses to increase the number of years that a firm can enjoy patent protection from 20 years to 25 years?

  What is the price at this output level

What output level will the competitive firm choose in order to maximize its profit? What is the price at this output level?

  Which the interest rate reaches its equilibrium value

Describe the process in the money market (demand and supply of/for money) by which the interest rate reaches its equilibrium value if it starts above equilibrium. (Principles of Macroeconomics)

  Which of these cases is output similar to short run

Assuming that my situation is that of other firms, in which of these cases is output similar to short run equilibrium output.

  If an economy experiences increasing prospect costs

If an economy experiences increasing prospect costs with respect to two goods, then the production-possibilities curve between the two goods will be.

  What appears to be major constraint that central banks used

What appears to be major constraint that central banks used to determine limits of monetary injections into economy. Did United States use same or different criteria.

  Traffic is expected to grow at a continuous rate

Traffic at a certain intersection is 2000 cars per day. A consultant has told the city that traffic is expected to grow at a continuous rate of 4% per year. How much traffic will be expected at the end of 5 years? : P=2k, r=4% continuous comp, n=5, F..

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