User Account

All Pages

Draw the demand and marginal cost curves

Assignment Help Microeconomics
Reference no: EM13685252

The market for qbits is initially competitive and the market demand is: P = 400 - 0.4Qd. The combined marginal costs of the firms in the qbit industry are: MC = 50 + 0.6Q.

1. Draw the demand and marginal cost curves. Compute and show how much these firms will sell and what they will charge.

2. Now a bunch of other firms buy out all of the qbit producers and create a cartel (their combined MC doesn't change). How much will the cartel produce? What price will they charge? (Draw any necessary new curves on your graph above).

3. Is there any DWL associated with the cartel? If so how much?

 

4. Now presume one big firm comes and buys out all of the firms in the cartel. This monopoly somehow miraculously is able to perfectly price discriminate. How much will this firm produce? What will be the deadweight loss created by this monopoly?

Reference no: EM13685252

Questions Cloud

Is verizon wireless a monopoly : Is Verizon Wireless a monopoly? In what ways could it be considered a monopoly? What markets are involved? What anti-trust legislation would apply? Is anti-trust legislation "fair" to your chosen firm? Why or why not?
What price must the firm charge in the short run : A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm’s total costs are C (Q) = 60 + 14Q + 2Q2. What are the firm’s short-run profits? What price must the firm charge in the short run?
At what prices is demand for firms product price elastic : At what prices is the demand for the firm’s product price elastic? If the firm wants to maximize its dollar sales volume, what price must it charge?
Factors affects the marginal productivity of a worker : Which of the following factors affects the marginal productivity of a worker?
Draw the demand and marginal cost curves : The market for qbits is initially competitive and the market demand is: P = 400 - 0.4Qd. The combined marginal costs of the firms in the qbit industry are: MC = 50 + 0.6Q. Draw the demand and marginal cost curves. Compute and show how much these firm..
Expansionary macro policy will cause real output : Assuming that the LAS Curve remains stationary and does not shift, if an economy is at its potential output, an expansionary macro policy will cause real output to:
Expected to increase sharply in the near future : Presume prices in the U.S. are expected to increase sharply in the near future. This is likely to: A. shift the AD Curve to the left. B. shifts the AD Curve to the right. C. makes the AD Curve flatter. D. makes the AD Curve steeper.
A decrease in the price level might cause : A decrease in the price level might cause: A. an increase in the quantity of aggregate demand because of the substitution effect. B. An increase in the quantity of aggregate demand because of the wealth effect. C. A decrease in the quantity of aggreg..
The price of gasoline can vary considerably across states : The price of gasoline can vary considerably across states in the US. The US national average price per gallon last month was $3.55. Do you think that the price of gas in Miami is more or less expensive than the national average? A representative surv..

Reviews

Write a Review

Microeconomics Questions & Answers

  Calculate the dol and break even point for this production

Suppose a company is producing 1000 units of bottled power drink priced at $5. It is using a manufacturing process with a fixed cost of $1450 and a variable cost of $2.75 per unit (AVC).

  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?

  Find michael income elasticity for filets

Find Michael's income elasticity for filets.

  Three stages of production

Rcognize the three phases of production and describe why the firm short run production has only one rational stage of production.

  Terms of the marginal rate of substitution

Quantities purchased are the same but prices are not. What does this mean in terms of the marginal rate of substitution at those quantities?

  Which manufactures rigid shaft couplings

Tuggle, Inc., which manufactures rigid shaft couplings, has $600,000 to invest. The company is considering three dissimilar projects that will yield the following rates of return.

  Now assume government imposes special tax on the computers

supply demand amp government in the marketsa doctoral student has just completed a study for her dissertation and

  How and why does it differ from the original is curve

According to the life-cycle / permanent-income hypothesis, consumption depends on the present discounted value of income. An increase in the real interest rate will make future income worth less, thereby reducing the present discounted value and r..

  Calculate the mean and standard deviation

Calculate the mean and standard deviation of 1-year and 20-year Treasury Constant Maturity Rates data series. Using the graphs and the results

  Why improvements in farm technology may not necessary

Using supply and demand analysis, explain why improvements in farm technology may not necessarily be good for the individual farmers. Assume that the individual farmers are selling a crop that has few substitutes

  Management charges higher nightly rates in winter when its

a new hampshire resort offers year-round activities in winter skiing and other cold-weather activities and in summer

  Income adjustment

To maintain utility constant an income adjustment brought the student to consume the basket (61,92). What are substitution effects and the income ?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd