Compute the profit - maximizing price for this seller

Assignment Help Microeconomics
Reference no: EM13392836

Suppose that a monopolistic seller of designer handbags faces the following inverse demand curve: P = 50 - 0.4Q. The seller can produce handbags for a constant marginal and average total cost of $10.

A) Calculate the profit - maximizing price for this seller.

B) Suppose the government levies a $4 tax per unit on sellers of handbags.

Calculate how this tax will affect the price the monopolist charges its customers

C) Who bears the burden of this tax?

Reference no: EM13392836

Questions Cloud

Draw demand curve and marginal revenue curve if firms : assume the demand curve faced by a monopolist is given by the following tableprice demand total revenue marginal
What is the difference between the effective rate of : what is the difference between the effective rate of interest and the stated rate of
Examine the significance of demographics and physical : select an organization with which you are familiar that conducts both domestic and global marketing. write a 1050- to
Mejia borrowed 200000 on march 1 2013 this amount plus : mejia borrowed 200000 on march 1 2013. this amount plus accrued interest at 10 compounded semiannually is to be repaid
Compute the profit - maximizing price for this seller : suppose that a monopolistic seller of designer handbags faces the following inverse demand curve p 50 - 0.4q. the
Provide miller with the amount of each of the 25 rental : your client miller leasing company is preparing a contract to lease a machine to molinar corporation for a period of 25
If interest rate is 01 and if gabys ability is 75 : gabys rate of return to years of education follows the following equationr 0.5 - 0.07s 0.01awhere is her the rate of
Ewrite down the effects on airport design and the frequency : your assignment is to write a research paper discussing the impact of newer larger aircraft on airport management.
Muhammed has available two means of settlement it can : assume that muhammed corporation has a contractual debt outstanding.muhammed has available two means of settlement it

Reviews

Write a Review

Microeconomics Questions & Answers

  How to use third degree price discrimination

Cinema Theater has estimated the following demand functions for its movies: Daytime demand, QD = 400 - 50 PD Nighttime demand, QN = 200 - 20 PN The marginal cost of serving another customer is $5 and its fixed costs are $100.

  New york citys banking communitynbspserved many of the

new york citys banking communitynbspserved many of the functions of a centralnbspbanknbspduring large parts of the

  Question 1a tax imposed on imports is called a tariff a

question 1.a tax imposed on imports is called a tariff a quota a comparative advantage an excise taxquestion 2 this

  A tell me why you selected the appropriate exponential

a tell me why you selected the appropriate exponential smoothing method by commenting on your y data

  1one of the requirements of the noble eightfold path is

1.one of the requirements of the noble eightfold path is right livelihood. schumacher suggests that the understanding

  What is the minimum efficient scale in this industry

What is the long-run equilibrium price in this market? Explain intuitively, in your own words, why this is the long-run equilibrium. What is the long-run market equilibrium quantity?

  What do you mean by market segmentation explain how you

what is market segmentation? describe how you would go about targeting markets within a market segment. how can a

  Effect of market shocks on equilibrium quantity and price

Briefly discuss whether this problem provides enough information to determine whether the equilibrium price and quantity of trucks increased or decreased.

  In 1982 nominal gdp decreased by 2 while real gdp increased

in 1982 nominal gdp decreased by 2 while real gdp increased 4. what explains the difference between nominal gdp and

  Evaluate the accuracy of the forecast

Evaluate the "Accuracy" of the forecast for the "hold out period" using RMSE and MAPE error measures used from forecast period residuals and comment them.

  Plot a graph of gdp per capita against life expectancy

Plot a graph of GDP per capita against life expectancy for the countries shown. Does your plot con?rm the Pritchett and Summers ?nding?

  What is the inflation rate in felix''s salary

Felix Jones, a recent engineering graduate, expects a starting salary of $ 65,000 per year. His future employer has averaged 5% per year in salary increases for the last several years.

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