Should the monopolist advertise

Assignment Help Microeconomics
Reference no: EM13162250

A monopolist has two types of customers. There are 100 of TYPE A, who will each pay up tp $10 for a single unit of the good, and 50 of TYPE B, who will each pay up to $8.00. Neither are willing to purchase additional units at any price. If it must find a uniform price what is the price? Assume that spending $80 on advertising will attract 100 more TYPE B customers. Should the monopolist advertise? If so what will happen to the price?

Reference no: EM13162250

Questions Cloud

Determine the number of bromine molecules present in flask : A flask contains 0.110 mol of liquid bromine, Br2. Determine the number of bromine molecules present in the flask.
Find a uniform price what is the price : A monopolist has two types of customers. There are 100 of TYPE A, who will each pay up tp $10 for a single unit of the good, and 50 of TYPE B, who will each pay up to $8.00.
What would the volume of methane at standard temperature : a bacterial culture isolated from sewage produced mL of methane,ch4 at 30C and 749 mmHg. What would the volume of methane at standard temperature and pressure 10 C 760 mmHg'
What is the final volume : a 40.0 ml volume of ethane gas is heated from 25.0 celcius to 50.0 celcius. If the pressure remains constant, what is the final volume?
Should the monopolist advertise : Should the monopolist advertise? If so what will happen to the price and who will each pay up to $8.00. Neither are willing to purchase additional units at any price
What does fu mean in stoichiometry : what does FU mean in stoichiometry?
How many units should each plant produce to maximize profit : How many units should each plant produce to maximize profit at that price and a perfect competitive firm faces a market price of $10 for its output X
What is the osmotic pressure of a solution : What is the osmotic pressure of a solution made from dissolving 90.0 g of glucose, rm C_6H_{12}O_6, in 650 mL of water at 14.0{^circ}C.
Calculate the molar mass of the biomolecule : A 1.90 g sample of a large boimolecule was dissolved in 11.0 g of carbon tetrachloride. The boiling point of this solution was determined to be 77.85°C. Calculate the molar mass of the biomolecule

Reviews

Write a Review

Microeconomics Questions & Answers

  Analyzing the current market conditions

Examining the current market situations of "Starbucks" competition can take many forms. value competition includes collusion, price leadership, loss leaders, price discrimination.

  Calculate the marginal revenue product

Calculate the marginal revenue product given this information and how many real estate agents will the manger hire if the wage rate is $32,000? Why?

  Deriving the supply curve

Consider the relationship given by QCars = 100 + 4xPCars - 2xPSteel - 0.2xPWorkers, where QCars is the quantity of cars (in thousands), PCars is the price of cars and PWorkers is the wage earned by autoworkers.

  How market structure affects market performance

Describe how market structure affects market performance and conduct. Recognize three types of government regulation that aid to enhance market performance

  Investigations of antitrust behavior

The Microsoft antitrust trial (United States vs. Microsoft) has been one of the biggest investigations of antitrust behavior since the turn of the century. You are supporting the Government, research and present a cohesive argument to the other si..

  Find the new equilibrium price and quantity

Suppose demand function has changed t0o Qd2 = 14-P. Find the new equilibrium price and quantity?

  Short run and long run decisions

Assume that you became president of small theater company. Your playhouse has the 120 seats and small stage. The actors have national reputations, and demand for tickets is enormous relative to number of seats available

  Changes in isoquant and input prices

A nation has a fixed amount of Capital and Labor which lies on aggregate isoquant when all inputs are being used efficiently.

  What are the highest and lowest payments

What are the highest and lowest payments from the writer that the beekeeper-farmer team will accept for the sixth day?

  Production possibilities for the firm

The following is the production possibilities for a firm. At 0 labor units (strangely enough), there are 0 units produced. At 1 labor unit, there are 10,000 units produced, at 2 labor units, there are 25,000 units produced, at 3 there are 45,000, ..

  Solution to the fundamental economic problem

Explain the effects of the new factory on the items below. Then place the number of each item on the circular-flow diagram to show whether the activity takes place in the product market or resource market

  Law of demand supply-government intervention

Provide two examples of actions taken by a company, government, or organization whose effect is to prevent specific markets from reaching equilibrium. What evidence of excess supply or excess demand can you cite in these examples?

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