What are the monopolists profits are equal to

Assignment Help Business Economics

Reference no: EM131095034

A monopolist has two specific demanders with demand equations: qA = 10 – p and qB = 10– 2p. This monopolist implements an optimal two-part tariff pricing scheme, under which demanders pay a fixed fee a for the right to consume the good and a uniform price p for each unit consumed. The monopolist chooses a and p to maximize profits. This monopolist produces at constant average and marginal costs of AC = MC = 2. What are the monopolist’s profits are equal to? What is the average price paid by demander B?

Reference no: EM131095034

Questions Cloud

What is the nature of their business : Sue and Meg have begun operating a house cleaning service for the purpose of earning enough money to travel to Europe. After six months, they had saved enough for their trip, so they stopped operating their business. What is the nature of their busin..

Calculate the velocity a spherical rain drop would achieve : Take the size across of the drop to be 4 mm, the density to be , and the surface area to be .

Predict effect of e-commerce on equilibrium output : Business Week recently declared, “We have entered the Age of the Internet” and observed that when markets for goods or services gain access to Internet, more consumers and more businesses participate in the market. Use supply and demand analysis to p..

Relationship between knowledge-based economic decision : Course outcome(s) practiced and assessed in this Assignment: Analyze the relationship between knowledge-based economic decision-making and economic growth.

What are the monopolists profits are equal to : A monopolist has two specific demanders with demand equations: qA = 10 – p and qB = 10– 2p. This monopolist implements an optimal two-part tariff pricing scheme, under which demanders pay a fixed fee a for the right to consume the good and a uniform ..

Global competitiveness report : Go to http://www.weforum.org. Click on the "Reports" tab and find the latest report entitled "Global Competitiveness Report" that is available.

Monopolist perfectly price discriminate : A monopolist faces a market demand curve given by: Q = 70 – P. This monopolist perfectly price discriminate among its customers. If the monopolist can produce at constant average and marginal costs of AC = MC = 6, what are the monopolist’s profits ar..

Find the phase change undergone by its electric vector : find the phase change undergone by its electric vector if the refractive index of the conductor is n2=n(1+ip)

What issues in consumer demand could have caused : Several years ago Coca Cola decided to change the formula for its major Coca-Cola product line. They used panel taste-test and branded the new product as "New Coke" It was a failure and the company lost major market share to another soft drink maker...

User Account

All Pages