Monopoly pricing, Business Economics

1. (classical monopoly pricing) A monopolist faces a demand curve q (p) = 100   p:

(a) If its cost function is C (q) = 2q; what is the optimal level of price and quantity?

(b) If its cost function is C (q) = 10+2q (i.e. the rm has a xed cost 10), what is the optimal level of price and quantity?

2. (price discrimination) A monopolist sells bikes in two markets with demand curves given by

 q1 (p1) = 100   2p1; q2 (p2) = 100   p2:

The monopolist has a constant marginal cost c = 20 and has no xed cost. If the monopolist can price discriminate, what price should it charge in each market?

Posted Date: 2/16/2013 12:16:40 AM | Location : United States







Related Discussions:- Monopoly pricing, Assignment Help, Ask Question on Monopoly pricing, Get Answer, Expert's Help, Monopoly pricing Discussions

Write discussion on Monopoly pricing
Your posts are moderated
Related Questions
despite of pitfalls forecastimg is indispensable to a business firm.discuss the importance of forecasting in light of this statment

WHAT are relationship between them showthese relitionship with the help of digram also state relitionship between AR MR & TR.

Consider a Cournot duopoly. The market demand is p=190-q1-q2. Firm 1's marginal cost is 40, and firm 2's marginal cost is also 40. There are no fixed costs. A.    Derive every fir

What are the Economies at Different Stages of Development? Economies at Different Stages of Development: • LDCs (Less Developed Countries) share common features but all one

Define given terms: Actual Cost of Work Performed (ACWP); Budgeted Cost of Work Performed (BCWP); Budgeted Cost of Work Scheduled (BCWS). • ACWP is the amount of attempt (exp

Problem 1 Different purposes of reading require different methods of reading. Describe the various ways of reading. What are the techniques that you can use to improve your rea

If an economy is experiencing reduction, will the nominal interest rate be higher or lower than the real interest rate? What is the equation that relates nominal rates, inflation a

What is the Third World? Third World: Developing countries are sometimes termed as collectively like the Third World. Such term can cause offence within developing nation

Question 1: ‘The WTO was set up with the intention of regulating international trade between countries'. How successful has the WTO been in attaining its objectives? Questi

Make a general comparison analysis of all the business units