Determine optimal price, quantity and economic profit, Microeconomics

Determine Optimal Price, Quantity and Economic Profit

A firm has a demand function P = 200 – 5Q and cost function:  AC=MC=10 and a potential entrant has a cost function: AC=MC=20.

a. Determine the optimal price, quantity and economic profit for the firm in the short run.
b. If the firm wants to preclude all entry into the market what price, quantity and profit will it choose?
c. What price, quantity, and corresponding profit occur if this a purely Competitive market?
d. Assuming the demand function is identical for all buyers, determine the two-part tariff that maximizes profit for the firm.
e. Determine the optimal price, quantity and economic profit for the firm if it is a pure  monopolist.

Posted Date: 2/15/2013 2:41:41 AM | Location : United States







Related Discussions:- Determine optimal price, quantity and economic profit, Assignment Help, Ask Question on Determine optimal price, quantity and economic profit, Get Answer, Expert's Help, Determine optimal price, quantity and economic profit Discussions

Write discussion on Determine optimal price, quantity and economic profit
Your posts are moderated
Related Questions
The accountants keep all the business transactions and records of a sole proprietorship separate from the business owner''s personal transactions and For legal purposes a sole prop

GROWTH OF EMPLOYMENT OPPORTUNITIES: Several disquieting features are observed in the Indian labour market over the past two decades particularly during the 1990s. These are di

The following are AC and TC functions for various firms (i). AC = 140/Q + 20 (ii) AC - a/Q = k (iii) TC - 10 =2Q + 0.1Q 2 (iv) TC - k - βQ = cQ 2 Where a, k, β and

Non-Accelerating-Inflation Rate of Unemployment (NAIRU): This theory is a variant of neoclassical natural rate of unemployment. As in original natural rate theory, NAIRU advocates

V alue Additivity In an efficient market the value of any 2 assets can be estimated as the sum of the values of the two individual assets. This is a variation on the theme

draw a production possibility frontier task using the graph and value and identity the pareto efficent and inefficient point and the marginal oppotunity cost of x for each point of

International Comparisons Method In the 1960s, a few developing countries of the world looked around the developed world in search of models of development. For instance, Sout

if a commodity has limited demand , should economist say that we still have a scarcity ?

what is the theory of supply