The monopolist sells in two geographically divided markets

Assignment Help Microeconomics
Reference no: EM13394599

A monopolist sells in two geographically divided markets, the East and the West. Marginal cost is constant at $50 in both markets. Demand and marginal revenue in each market are as follows:

QE = 900 - 2PE

MRE = 450 - QE

QW = 700 - PW

MRW = 700 - 2QW

a. Find the profit-maximizing price and quantity in each market.

b. In which market is demand more elastic? 

Reference no: EM13394599

Questions Cloud

Two peer reviewed journals for referencesthe differences : two peer reviewed journals for references.the differences between tall and flat the advantages and disadvantages. an
Explain the circumstances under which the firm chooses a : describe the circumstances under which a firm chooses a low-cost strategy to attain sustainable competitive advantage.
Remaining competitive in a global economy frequently : 1000 words- all new content at least 2 referencesremaining competitive in a global economy frequently means moving from
How many total publications are sold annually in each print : 1.how many total publications are sold annually in each print media industry?2.what are the major ownership chains in
The monopolist sells in two geographically divided markets : a monopolist sells in two geographically divided markets the east and the west. marginal cost is constant at 50 in
Evaluate the company for its weaknesses in the area below : evaluate the company for its weaknesses in the area below and look at ways for them to improve what amazon can do
The specific event or issue which drove it toward embarking : 1000- word all new content at least 2 referencesdo an internet search supported with references and in-text citations
Compute monopolists profit-maximizing quantity price and : a monopolist has a constant marginal and average cost of 10 and faces a demand curve of qd 1000 - 10p. marginal
Supply chain management is the integration of activities : supply chain management is the integration of activities that procure materials and services transform them into

Reviews

Write a Review

Microeconomics Questions & Answers

  Calculate the correlations between life expectancy

Calculate the correlations between life expectancy and the two measures of GDP per person

  Analyse the impacts of increased demand for biofuels

Analyse the impact of an increase in the price of crops and a (proportionately smaller) decrease in the price of fuel on a low income person who spends most of her income on food (derived from crops).

  Define marketing strategy emphasizing mass media advertising

An order written by the exporter instructing the importer, or their agent, to pay a specified amount of money at a specified time is a:  Note Payable, Draft, Promissory Note, Check.

  What money supply should the bank of canada set next year

Suppose that velocity is constant and the economy's output of goods and services rises by 5 percent each year. What will happen to nominal GDP and the price level next year if the bank of Canada keeps the money supply constant

  Why a monopoly can potentially earn super-normal profit

Explain, using diagrams, why a monopoly can potentially earn super-normal profit in both the short run and the long run, while perfectly competitive firms can only earn normal profit in the long run.

  What is the total dollar value of the change

What is the total dollar value of the change in welfare in the United States caused by the tariff? State whether the U.S. gets a welfare gain or suffers a welfare loss from the tariff.

  Explain marginal rate of substitution

. Consider a consumer who is always willing to substitute four pounds of a generic store-brand sugar for two pounds of a brand-name sugar. Do these preferences exhibit a diminishing marginal rate of substitution between store-brand and producer-br..

  Characteristics of a good business

Discuss at least four characteristics of a good business and identify and talk about at least four companies that you regard as having the characteristics of good business.

  Is the company practicing any type of price discrimination

The local utility company applies a "declining block" rate structure for its industrial consumers, that lower unit price is charged for higher quantity blocks of electricity and water usage. Is the company practicing any type of price discriminati..

  Describe the purpose of antitrust laws

The consumption of alcohol is often cited as an example of a negative externality. Explain a situation in which alcohol would be considered a negative externality. 3. Describe the purpose of antitrust laws. What do they accomplish.

  A traditional biography of these economists

1) We are not looking for a traditional biography of these economists, and we are not concerned about their place of birth, marriage(s), schooling, zodiacal symbols, favorite color or animal, except as that informs their work.

  What options are open to coral to address the problem how

the space age furniture company manufactures tables and cabinets to hold microwave ovens and portable televisions.

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