What prices should the firm charge in the markets

Assignment Help Microeconomics
Reference no: EM13184731

Suppose that you are hired as consultant to a firm producing a therapeutic drug protected by a patent that gives a firm a monopoly in two markets. The drug can be transported between the two markets at no cost. The demand schedule in the first market is Q1=100-0.5P1, where P1 is the price of the product and Q1 is the amount sold in the market. In the seconds market, the demand is Q2=140-P2, where P2 is the price of the product and Q2 is the amount sold in the market. The firm's overall marginal cost is MC=20+Q1+Q2. What price(s) should the firm charge in these markets? What will be firm's profit?

Reference no: EM13184731

Questions Cloud

How should the firm charge in these markets : Suppose that you are hired as consultant to a firm producing a therapeutic drug protected by a patent that gives a firm a monopoly in two markets. The drug can be transported between the two markets at no cost. The demand schedule in the first mar..
How to prepare a vertical analysis of the balance sheet data : Total liabilities and stockholders' equity $200,000 $210,000 Instructions (a) Prepare a horizontal analysis of the balance sheet data for Conard Corporation using 2011 as a base. (b) Prepare a vertical analysis of the balance sheet data for Conard Co..
State the henderson-hassalbach equation and calculate ph : protonated benzoic acid in solution give the Henderson-Hassalbach equation and calculate pH
State the exclusive product of hydration of an alkyne : prepared in good yield as the exclusive product of hydration of an alkyne with water, SO4 and Hg to form ketone
What prices should the firm charge in the markets : Suppose that you are hired as consultant to a firm producing a therapeutic drug protected by a patent that gives a firm a monopoly in two markets. The drug can be transported between the two markets at no cost. The demand schedule in the first mar..
Find monopolists profit-maximizing quantity : Now.suppose the monopolist has a total cost curve given by TC+16+4Q2(fixed costs are at original level but variable costs changed). Find the monopolist's profit-maximizing quantity and price.How much economic profit does the monopolist earn d)Inte..
State silicon atom and two oxygen atoms per formula unit : Quartz, which contains one silicon atom and two oxygen atoms per formula unit, is the second-most-common mineral on Earth after feldspar
State naturally occuring copper contains : naturally occuring copper contains a miture of 69.09% copper-63 (62.9298 amu) and 30.91% copper-65 (64.9278 amu)
State the bicarbonate concentration : The pK value of the system is 6.1. If the [CO2] is expressed in terms of partial pressure and equals 1.3kPa and the bicarbonate concentration is 2.2 x 10^-3 M, what is the pH of the solution.

Reviews

Write a Review

 

Microeconomics Questions & Answers

  Long-run supply curve in a constant-cost industry

Long-run supply curve in a constant-cost industry is linear and shut down because it will no longer be earning a normal pro?t.

  Question about money supply and interest rates

Determine what happens to the money supply, interest rates, and economy in general if Federal Reserve is a net seller of government bonds?

  Policies to be enact to increase total consumption spendings

Based on the assumption that each family spends $100 plus one-half of its total income each week, what is the total weekly consumption spending of a poor family prior to instituting the tax? What is the total weekly consumption spending of a rich ..

  What is the a supply curve

4.The opportunity cost of producing one more hot dog is $1.00. The price of a hot dog is $1.50. The producer surplus from selling one more hot dog is,The demand curve for hamburgers is the same as the,Markets may not achieve an efficient allocation..

  Compute the equilibrium price and quantity for firm

Suppose the firms compete by simultaneously choosing price and fine the best response function of each firm as a function of the other firm's price. Compute the equilibrium price and quantity for each firm.

  Case study - monopolistic competition and oligopoly

Fronterra, created in 2001 by New Zealand lawmakers, profits some 13,000 dairymen instead of all the citizens of the nation.

  Economic costs and benefits for project

Economic costs and benefits for project

  How the egg breaking rampage affects egg prices

Would you consider the demand for eggs to be elastic or inelastic and illustrate and explain with a diagram how can the Government intervene and correct this situation

  Intervention of government in the market process

Explain why government regulation is or is not needed, citing the major reasons for government involvement in a market economy. Provide support for your explanation.

  Example of monopoly

Give an example of a monopoly, an oligopoly, and a cartel. Describe the welfare effects of monopolies and oligopolies.

  Calculate the appropriate value to use for income

Calculate the appropriate value to use for income in your analysis. Explain why you choose to use that level of income and what is the dead weight loss associated with monopoly

  Explain national bureau of economic research

According to the National Bureau of Economic Research, a poor family is the one whose income falls below one-half of the median family income. Using this definition of poverty, answer the following questions. a) How, if at all, would the proportio..

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