Calculate the perfectly competitive and monopoly outputs

Assignment Help Microeconomics

Reference no: EM131904804 , Length: 2 pages

Question

1.1. Suppose a perfectly competitive industry can produce Roman candles at a constant marginal cost of RIO per unit. Once industry' is monopolized, marginal costs rise to R12 per unit because R2 per unit must be paid to lobbyists to ensure that only this firm receives a Roman candle license. Suppose the market demand for Roman candles is given by

Q_d = 1000 - 50P

And Marginal revenue curse by

MR= 20-Q/25

a. Calculate the perfectly competitive and monopoly outputs and prices

1.2 The long run total cost function for a firm producing cellphones is

TC = Q³- 40Q²- 430Q

Alice Q is the number of cellphones per week

a. What is the general shape of this total cost function?
b. Calculate the average cost function for the cellphones?
c. What shape does the graph of this function have?
d. At shape level of the cellphones output does average cost reach a minimum?
e. What is the average cost of this level of output?

1.3. Calculate the marginal cost function; show that this marginal cost curve intersects average cost at its minimum value. Graph the average and marginal cost curves for cellphones production.

Reference no: EM131904804

Questions Cloud

Discuss the stages of the buying decision process : Every product or service has a buying process, even digital products and services. In this assignment, you will research and analyze the buying process.

Identify management opportunities in the cloud : Security threats in cloud-based solutions with risk management strategies. Identify management opportunities in the cloud.

What leadership style would be most appropriate for that : Prepare a paper that addresses how you would adapt your leadership approach to lead a group based upon Geert Hofstede's six dimensions.

Discuss the various types of situational influences : How is social media impacting the various types of situational influences? Follow the APA format and times new roman font size 12.

Calculate the perfectly competitive and monopoly outputs : Calculate the perfectly competitive and monopoly outputs and prices and Calculate the marginal cost function; show that this marginal cost curve intersects

Analyze why you believe the given items are important : Analyze why you believe these are important, and include examples of security breaches that can occur if these items are not outlined and followed.

Explain what are element of administering an e-commerce site : Explain what are some elements of administering an e-commerce site? Detail the methods and options to authenticate online customers.

How can consumers ensure information is credible information : How can consumers ensure the information they are researching or cross-referencing is credible information?

Prepare a proposal to your treasurer : There are some risks involved with international transactions due to fluctuations of the foreign currency exchange rates.

User Account

All Pages