User Account

All Pages

What is the profit-maximizing rate of output

Assignment Help Microeconomics
Reference no: EM132542044

The following table indicates the prices various buyers are willing to pay for a MINI Cooper car: Buyer

Maximum Price

Buyer A Buyer B Buyer C

$50,000 40,000 30,000

Buyer D Buyer E Buyer F

Maximum Price

$20,000 10,000 0

The cost of producing the cars includes $40,000 of fixed costs and a constant marginal cost of $10,000.

(a) Graph below the demand, marginal revenue, and marginal cost curves.

(b) What is the profit-maximizing rate of output and price for a monopolist?

(c) How much profit does the monopolist make?

(d) If the monopolist can price discriminate, how many cars will he sell? (e) How much profit will he make?

Reference no: EM132542044

Questions Cloud

Compute silikon expected margin of safety : Compute silikon's expected margin of safety for the coming year. Also, what would sales volume need to be if Monique desires a 20% margin of safety?
Rationing of goods a fact of economic life : In a market economy, why is the rationing of goods a fact of economic life, and what form of rationing is the most prominent?
Pursuit of economic self-interest benefit : Does the pursuit of economic self-interest benefit the economic pursuits of others? Explain why or why not.
Briefly describe 2 government : Briefly describe 2 government-imposed barriers to entry that help larger firms avoid some competition, and then explain the impact that these government
What is the profit-maximizing rate of output : The following table indicates the prices various buyers are willing to pay for a MINI Cooper car: Buyer
Prepare depreciation schedules using straignt line method : Prepare depreciation schedules using straignt line method, units of activity of depreciation.Provide journal entry to recond depreciation
What entry would jackson trucking make to record the sale : What entry would Jackson Trucking make to record the sale? What entry would Jackson Trucking make to record the sale of the truck for $10,000 cash?
Journalize april transaction using perpetual inventory : Juliet Burke, a former professional tennis star, operates Juliet's Tennis Shop,Journalize the April transactions using a perpetual inventory system.
What is the per-unit variable cost : Within the relevant range, per-unit variable cost? Remains the constant as activity level increase. /Decreases as activity level increases

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd