Monopolist has two specific demanders with demand equations

Assignment Help Business Economics

Reference no: EM131095877

A monopolist has two specific demanders with demand equations: q_A = 10 – p and q_B = 10 – 2p. This monopolist implements an optimal two-part tariff pricing scheme, under which demanders pay a fixed fee a for the right to consume the good and a uniform price p for each unit consumed. The monopolist chooses a andp to maximize profits. This monopolist produces at constant average and marginal costs of AC = MC = 2. The monopolist’s profits are _____ and the average price paid by demander B is _______ . (NOTE: Write your first answer in number format, with 2 decimal places of precision level; do not write your answer as a fraction. Use a period for the decimal separator and a comma to separate groups of thousands). Show all steps.

Reference no: EM131095877

Questions Cloud

Macroeconomic measurements and supply and demand : XYZ Company is aware that macroeconomics plays a general role in its organization’s success. Top-level management has asked you to conduct research, and then write a report on specifically what role it should play in its overall success. Management h..

Find your firm total revenue-total cost-profit in short run : Your firm is one of 100 identical firms operating in the short run in a perfectly competitive market. Your total cost function (short run and long run) is C = 500 + 20 q + q2, and your marginal cost function is MC = 20 + 2q. Find the supply curve for..

If the? long-run average cost curve continuously slopes : If the? long-run average cost curve continuously slopes upward as output? rises, minimum efficient scale would be

According to efficient market? theory : According to efficient market? theory, which of the following can best predict the stock price of a particular company? tomorrow?

Monopolist has two specific demanders with demand equations : A monopolist has two specific demanders with demand equations: qA = 10 – p and qB = 10 – 2p. This monopolist implements an optimal two-part tariff pricing scheme, under which demanders pay a fixed fee a for the right to consume the good and a uniform..

With inflation and without inflation : A 10-year project is evaluated under two scenarios: (i) with inflation, and (ii) without inflation. Without inflation under 10% interest rate its present worth is $21,851. If annual inflation of 2% is assumed, then the project's present worth becomes..

Monopolist pursues separate monopoly pricing policy : A monopolist faces a market A demand curve given by: QA = 70 – P and market B demand curve given by: QB = 50 – 0.5P. This monopolist pursues a separate monopoly pricing policy in each market. Assume arbitrage between the two markets can be prevented.

Considering purchasing new boring machine to modernize : A small manufacturing firm is considering purchasing a new boring machine to modernize one of its production lines. Two types of boring machine are available on the market. Determine the break-even annual O&M costs for machine A so that the present w..

Classical economics differ from the keynesian position : Discuss the main points of chapter 11-New Classical Economics. How does New Classical Economics (rational expectations) differ from the original Classical Model? How does New Classical Economics differ from the Keynesian position?

User Account

All Pages