How much profit does an unregulated monopolist earn

Assignment Help Business Economics
Reference no: EM13803314

(a) How much profit does an unregulated monopolist earn?

(b) How much profit would be earned if MC pricing were imposed?

Reference no: EM13803314

Questions Cloud

What is a monopolist : What is a monopolist? Is the product unique or there are no close substitutes. Discuss What type(s) of decision does the monopolist make about pricing and the quantity of output to offer in the market? Can the monopolist determine the level of output..
Suppose the welfare benefit formula : Suppose the welfare benefit formula is, How large is the benefit if wages equal. What is the breakeven level of income in this case?
Which investment has a higher rate of annual cash return : Which investment has a higher rate of annual cash return? Investment A: $1,000 bond with a coupon rate of 4 percent selling for $1,200 or Investment B: $1,000 stock with a P/E ratio of 10 that pays out half its profits in dividends.
Suppose the market price of corn : Suppose the market price of corn is $1.50 per bushel. Would a farmer sell corn to the market or the government (CCC)? How much of a countercyclical payment per bushel would the farmer receive?
How much profit does an unregulated monopolist earn : How much profit does an unregulated monopolist earn? How much profit would be earned if MC pricing were imposed?
Assumption is she making about the elasticity of demand : Suppose the current price of gasoline at the pump is $4 per gallon and that one million gallons are sold per month in Texas. A local politician proposes to add a 10-cent tax to the price of a gallon of gasoline, and she claims that the tax will gener..
The present turmoil at starbucks inevitable : Is brand loyalty and superior product quality enough to save Starbucks from its present troubles? To what extent was the present turmoil at Starbucks “inevitable"?
Market with inelastic demand-elastic supply at equilibrim : Draw a graph that shows a market with inelastic demand and elastic supply at equilibrium. Then, on your graph, draw what happens when the government subsidizes buyers. Note the price received by sellers and price paid by buyers. Who receives most of ..
Trade-offs that appear to exist among nations economic goals : If the Federal Reserve wishes to put upward pressure on market interest rates, what would it be most likely to do? How would it proceed to push the Federal funds rate in an upward direction? How would it lower the funds rate? Describe the trade-offs ..

Reviews

Write a Review

Business Economics Questions & Answers

  Firms optimization problem

The FOC and local SOC for the firm's optimization problem can be used to prove the law of supply, meaning exactly: if the firm supplies a positive quantity at the current market price, then at a higher price it will supply a larger quantity.

  Q1 find the equilibrium price and quantity after the shift

q1. find the equilibrium price and quantity after the shift of the supply curve.q2. a machine used to cereal boxes

  Show how the imposition of a tax on either the buyers

Assume that there are two categories of goods: protein shakes and all other products. A. Show using diagrams how a consumer's demand curve for protein shakes can be derived from an indifference map and a budget constraint diagram. Make sure you expla..

  Explain how many units of labor and how many machines

Explain how many units of labor and how many machines would the firm use to produce 40 units in the cheapest possible way.

  Cross elasticity of demand

The company wants to replace office equipment like machines and computer at assorted times over the five year planning period.

  Considering political disposition

Considering political disposition as an axis of product differentiation does vertical or horizontal differentiation best categorize it.

  Find the price at which the firm sells the product

Suppose that a firm maximizes its total profits and has a marginal cost (MC) of production of $8 and the price elasticity of demand for the product it sells is (-)3. Find the price at which the firm sells the product.

  Represent an example of perfect competition

In your opinion, does the Houston Medical Center, in which many hospitals gather, represent an example of perfect competition, monopolistic competition, collusive oligopoly.

  The tax is a constant marginal tax on earned income

Use a labor/leisure model (with leisure hours on the horizontal axis and income on the vertical axis) and words to explain in detail why an income tax creates a welfare cost (or excess burden). Assume that the tax is a constant marginal tax on earned..

  Income on the horizontal axis and demand on the vertical one

Suppose the price of good 1 is $2, and the price of good 2 is $1. Derive Pete’s demand function for good 1 (as a function of income). Is good 1 normal for Pete? How about good 2? Plot the Engel curve for goods 1 and 2 (with income on the horizontal a..

  Illustrate what implications do these results have

Calculate the elasticity for each variable. On this basis, discuss the relative impact that each variable has on the demand. Illustrate what implications do these results have for the firm's marketing and pricing policies.

  Labor demand more elastic in the long-run or the short-run

Laura (of Luke and Laura’s Itty-Bitty Drink Umbrella Inc.) is trying to decide how many workers to hire. The Itty-Bitty Drink Umbrella production function is given by: Q = 6L^(1/3)K^(1/2). The price of output is p, the wage rate is w, and the rental ..

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