Reference no: EM131006080
Suppose a monopolist has zero marginal cost and faces the following demand curve:
D(p) = 10 - 2p
(a) Graph the demand curve, the marginal revenue curve, and the rm's marginal cost curve. Calculate the monopolist's price and output if she cannot engage in any type of price discrimination. Calculate the monopolist's prots at this price. Is the market operating eciently? Explain. In a general equilibrium context, explain the effects of the monopolist on the allocation of goods and the use of resources in the economy.
(b) Suppose the monopolist can perfectly price discriminate. What prices will she charge? Calculate the monopolist's prots under this pricing scheme. Is the market operating efficiently? Explain. Explain the diculty in engaging in this type of discrimination.
(c) Suppose the demand curve represents that of a single consumer. If the monopolist engaged used a two-part tari to price its goods. Calculate the two-part tariff (entry fee and per unit price) and the monopolist's profits. Compare and contrast this case with the perfect price discrimination case above.
(d) Suppose the monopolist used an all-or-nothing pricing scheme. Calculate the all-or-nothing price and the monopolist's prots. Compare and contrast this case with the perfect price discrimination case above.
(e) Given the information problems facing the monopolist, which of the later two cases would be easier to implement. Discuss the types of information that may be needed to implement each.
Home versus foreign countries while they remain in autarky
: What is the difference between relative factor endowments and relative factor intensities? What does the Hecksher-Ohlin theorem say about home versus foreign countries while they remain in autarky? What happened to the Leontief paradox when human ca..
|
What are executory costs
: What are executory costs? How are they accounted for by the lessee in a capital lease when paid by the lessee? When paid by the lessor? Explain.
|
Case brief - roberts vs century contractors inc
: CASE BRIEF ASSAIGNMENT. Case - Roberts v. Century Contractors, Inc. 592 S.E.2d 215
|
Prbolem regarding the consumer buying behavior
: Short Paper Assignment: Consumer Buying Behavior . Write a one-page paper addressing the points below in paragraph format. Use these bullets as a checklist.
|
Monopolist has zero marginal cost and faces the demand curve
: Suppose a monopolist has zero marginal cost and faces the following demand curve: Graph the demand curve, the marginal revenue curve, and the rm's marginal cost curve. Calculate the monopolist's price and output if she cannot engage in any type of pr..
|
Prepare a statement of cash flows for the year 2014 for aero
: Use the analysis of Aero to illustrate how information in the balance sheet and statement of cash flows helps the user of the financial statements.
|
Calculate the irr
: The plant will wear out 20 years after its completion. At that point you expect to get $10 million in salvage value for the plant. Using a cost of capital (interest rate) of 12%, calculate the present Worth of the plant. Calculate the IRR.
|
What is the lessees discount rate
: What is the lessor's discount rate when determining the present value of minimum lease payments? What is the lessee's discount rate?
|