Effect of one time licensing fee on the firm

Assignment Help Macroeconomics
Reference no: EM1315726

A firm in a perfectly competitive 'industry has this cost function: TC = 900 + q^2

a) If market demand is QD = 1800 - 20P, what is the long-run equilibrium price, quantity produced by the firm and the industry, and the number of firms in the industry?

b)  If demand increases by 600 for all Q, what is the short-run price, quantity, and profit for the firm and the industry? In the long-run how many firms enter the industry?

c) If each firm has to pay a one-time licensing fee, in the short-run what happens to the market price and quantity, and each firm's output and profits? What happens to the number of firms in the long-run? (No calculations necessary.)

Reference no: EM1315726

Previous Q& A

  Mean-standard deviation of the sampling distribution

What is the mean and standard deviation of the sampling distribution when we take all samples of size25?

  Calculation of cost of preferred stock and cost of debt

Calculation of cost of preferred stock, cost of debt, and cost of issuing new stock -  The financial motives for merger.

  Determining point estimate of population mean

Determine point estimate of population mean? By using 90% confidence, determine the margin of error?

  Determine the interest expense

Determine the interest expense that Coley Co. will show with respect to these bonds in its income statement for the fiscal year ended September 30, 2009, assuming that the discount of $360,000 is amortized on a straight-line basis.

  One sample t statistic-p value test

The one-sample  t  statistic has the value  t  = -1.68. What do we know about the  P -value of this test?

  Conversation on the theory of consumer

Explain her change in consumption in terms of income and substitution effects (give a precise quantitative answer). Is this a Griffin good (how do you know)?

  Find the total interest expense

What is the total interest expense over the life of the bonds cash interest payments? Premium amortization?

  Defining the rejection region and statistical decision

Define the rejection region. State the statistical decision.

  What is your best estimate for the stock price per share

Multiple choice questions on stocks, derivatives and capital budgeting and what is your best estimate for the stock price per share?

  Estimating the p-value based on t-test

Between what two values does the  P -value of this test fall?


Write a Review


Similar Q& A

  Determination of output and substitution effects

Use the firm's isoquant-isocost diagram and the firm's marginal cost curve to explain and illustrate the output and substitution effects of a decrease in the price of labor.

  Optimal pricing strategies of monopolies

As a manager of chain of movie theatres which are monopolies in their respective markets-Devise a pricing strategy to maximize your firm's profits.

  Short run and long run profit maximizing price

Finding the short run and long run profit maximizing price - quantity and number of firms in industry.

  Us household-as and ad diagrams

Describe the US household is harmful to the economy with the use of AS-AD diagrams.

  Explanation of augmented phillip curve model

Using the dynamic augmented Phillip's Curve model (Y/PC/MR), demonstrate the effects of the Following changes. Show both the short-run and long-run effects.

  Decision making by using game theory

Budweiser, Miller and Coors who together produce 80% of all beer consumed in the US, each spend well over $250 million a year on television advertising campaigns, promoting their beer brands.

  Monopoly pricing and elasticity

Explain why a monopolist will never set a price (and produce the corresponding output) at which the demand is price-inelastic.

  Pricing decision on the basis of elasticity of demand

A tariff I ssimply a tax on imports. Use our model of the excise tax (with  diagram) to expain why domistic firms request that tariff? Consider both the domestic and the foreign country in your answer

  Calculation of total factor productivity growth

Calculate total factor productivity growth (our measure of technological progress) for each country using the growth accounting framework discussed in class.

  Explanation for human development indicator

Discuss briefly what you think the way in which the HDI is constructed. (Briefly means no more than five lines of text. Excesses are severely penalised.)

  Graphical representation of full employment

Use aggregate demand (AD) and aggregate supply (AS) model in which the short run aggregate supply curve slopes upwards to describe the equilibrium level of real GDP and prices if the economy is operating:

  Contrast the monopolist and the monopolistic firm

Compare and contrast the monopolist and the monopolistic firm Monopolistic competition is an inefficient form of organisation. Discuss

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