What is the resulting equilibrium price and quantity

Assignment Help Econometrics
Reference no: EM13203068

The widget Industry in Anytown is a monopoly, controlled by Widget Corp. Its demand curve for the local market is given by
P = 800 - 20 W
Where W represents the number of widgets sold per period.
The total cost function (including opportunity or implicit costs) for Widget Corp. is
TC = 300 + 500 W + 10 W2

If the industry is regulated and the regulatory authority forces Widget Corp. to earn only a normal return on investment (which is included in its cost function), what is the resulting equilibrium price and quantity?

Reference no: EM13203068

Questions Cloud

Find the internal rates of return : A -$2500 746 746 746 746 746 B -$6000 1664 1664 1664 1664 1664 The minimum attractive rate of return is 8%. After calculation we can find that the internal rates of return: for A, IRRA = 15%, for B, IRRB = 12% and for B-A, IRRB-A = 9.8%.
What rate of return would the indians have received : Peter Minuit bought an island from the Manhattoes Indians in 1626 for $24 worth of beads and trinkets. The 1991 estimate of the value of the land on this island was $12 billion (1 billion = 109). What rate of return would the Indians have received ..
Review the requirements for the leadership critique : Review the requirements for the Leadership Critique provided in the Final Project guidelines and the assessment criteria for this part of the Final Project provided in the Rubrics
Estimate the consumer price index in 1996 : Compute the equivalent annual inflation rate, based on the US Consumer Price Index, for the period 1981 (when CPI was 90.9) to 1986 (when CPI was 109.6) estimate the Consumer Price Index in 1996, working from the 1987 CPI.
What is the resulting equilibrium price and quantity : If the industry is regulated and the regulatory authority forces Widget Corp. to earn only a normal return on investment (which is included in its cost function), what is the resulting equilibrium price and quantity. Where W represents the number ..
Foods would be the poorest source of calcium : Assuming equal serving size, which of the following foods would be the poorest source of calcium?
Regarding social development : Which of the following is not true regarding social development?
What happens to the economic profits earned by widget corp : The widget Industry in Anytown is a monopoly, controlled by Widget Corp. Its demand curve for the local market is given by P = 800 - 20 W Where W represents the number of widgets sold per period. The total cost function (including opportunity or impl..
Necessary for a happy and meaningful life : WHEN ASKED what is the most necessary for a happy and meaningful life, most people first mention the importance of satisfying their

Reviews

Write a Review

Econometrics Questions & Answers

  What would be the effect on us gdp

Suppose that an auto company owned entirely by german citizens opens a new factory in south carolina. What sort of foreign investment would this represent Would the effect pm the U.S. GDP be larger or smaller

  What are the four mutually exclusive alternatives

First Cost: $500 Uniform Annual Benefit: $122 Salvage Value: $0 (a) Construct a choice table for interest rates from 0% to 100% (b) If the minimum attractive rate of return is 8% which alternative should be selected

  Describe a sluggish economy

"Though I'm against it for personal (Veteran) reasons. Majority of the drugs we found in Afghanistan were used to finance terrorist group.. although legalizing it would mean..less income for the terrorist and raise gdp So I'm not sure." 4. Give in..

  What rate of return per month will an engineer make

What rate of return per month will an engineer make over 2 and a half year project period if he invested $150,000 to produce portable 12volt air compressors. His estimated monthly costs are $27,000 with income $33,000 per month.

  Determine what is the stock symbol

the publicly-traded companies Research in Motion (Blackberry Phone producer) and McDonalds. Using Google's finance page, answer the following questions for both companies: (a) What is the stock symbol On which exchange is this stock traded

  Compute the internal rate of return and net present value

A firm has the opportunity to invest in a project having an initial outlay of $20,000. Net cash inflows (before depreciation and taxes) are expected to be $5,000 per year for five years. The firm has a marginal income-tax rate of 40%.

  Determine what price maximizes profits

Your company has a customer who is shutting down a production line, and it is your responsi-bility to dispose of the extrusion machine. The company could keep it in inventory for possible future product and estimates that the reservation value is ..

  What will be the annual operating costs

The Crockett Land Winery must replace its present grape-pressing equipment. The two alternatives are the Quik-Skwish and the Stomp-Master. The annual operating costs increase by 12% each year as the machines age. If the interest rate is 9%, which ..

  What is the firms current output level

At its current short-run level of production, a firm's average variable costs equal $20, and its average fixed costs equal $70. Its total costs at its current production level equal $200,000. a. What is the firm's current output level

  What is the level of output q that maximizes profit

Assume that the firm's marginal cost is given by MC = 0.2q + 3. What is the level of output q that maximizes profit? b) Assume the total cost is given by TC = 0.1q^2 + 3q + 10. Calculate the firm's profit. c) Graph these results and label firm's s..

  Calculate coefficient of variation

The XYZ Company has estimated expected cash flows [in thousands] for 1996 to be as follows: Calculate: a. expected value b. standard deviation c. coefficient of variation d. If the true cash flows are normally distributed with mean from (a) and stand..

  What are the excess reserves on the deposit

Suppose that a bank's customer deposits $4,000 in her checking account. The required reserve ratio is 0.25. What are the required reserves on this new deposit. What is the largest loan that the bank can make on the basis of the new deposit.

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