What price does it charge in the output market

Assignment Help Econometrics
Reference no: EM131409784

A firm is a monopoly in the output market and a monopsony in the input market. Its only input is the finished good, which it buys from a competitive market with an upward-sloping supply curve. The firm sells the same good to competitive buyers in the output market. Determine its profit-maximizing output. What price does it charge in the output market? What price does it pay to its suppliers?

Reference no: EM131409784

Questions Cloud

Differences among risk and uncertainty and ignorance : What are the differences among risk, uncertainty, and ignorance? Into which category of decision situation do most business decisions fall?
Is there a mixed-strategy nash equilibrium : If one shows heads and the other shows tails, your friend keeps them. Show the payoff matrix. What, if any, is the pure-strategy Nash equilibrium to this game? Is there a mixed-strategy Nash equilibrium? If so, what is it?
Despite gaining research from over 100 executives : Despite gaining research from over 100 executives, is marketing analytics an actual tool that is of any consequence or is it an extension to a contract that is unnecessary? Can marketing analytics really provide the end user with a cost-effective ..
What was the percentage increase or decrease in real wages : From 1996 to 2004, the median weekly earnings of workers represented by unions went from $610 to $776, and the Consumer Price Index (1982-1984 = 100) went from 156.9 to 188.9.- What was the percentage increase or decrease in real wages for these wo..
What price does it charge in the output market : The firm sells the same good to competitive buyers in the output market. Determine its profit-maximizing output. What price does it charge in the output market? What price does it pay to its suppliers?
What seasonal index is associated with each quarter : The corresponding deseasonalized values are 2320, 2362, 2205, and 2414, respectively. Based on this information, what seasonal index is associated with each quarter?
What effect will this disaster have on wages in this country : Suppose that a modern plague (AIDS, SARS, Ebola virus, avian flu) wipes out or incapacitates a major share of a small country's work force. If this country's labor market is competitive, what effect will this disaster have on wages in this country..
Estimate the usage volume for each quarter of 2010 : If the seasonal indexes for quarters I through IV are 55.0, 130.0, 145.0, and 70.0, respectively, estimate the usage volume for each quarter of 2010.
How does your answer change if the firm is a monopsony : Some health reformers have called for taxing firms to pay for workers' medical care. How is the incidence of a specific tax per worker shared between competitive firms and workers? How does your answer change if the firm is a monopsony?

Reviews

Write a Review

Econometrics Questions & Answers

  How to classify each project as either simple or nonsimple

Consider the following sets of investment projects: n A B C D E 0 -$250 -$200 -$70 -$300 -$90 1 $60 $90 $20 $220 -$100 2 $970 $90 $10 $40 -$50 3 $60 $5 $40 $0 4 $60 -$180 -$20 $150 5 $60 $40 $150 6 $50 $30 $100 7 $40 $100 8 $30 9 $20 10 $10

  Compute depreciation under different methods

For the declining-balance method, Wang Company uses the double-declining rate. For the units-of-activity method, total machine hours are expected to be 24,000. Actual hours of use in the first 3 years were: 2009, 400; 2010, 4,500; and 2011, 5,000.

  Calculate each persons average tax rate

Suppose there are three people discussing the amount of taxes they pay and wondering if the current tax system is fair. Jeff earns an income of $300,000 a year and has an annual tax bill of $40,000. Margaret earns and income of $200,000 a year an..

  Plot the stock of reserves from january 2008 to the present

Finally, plot these asset quantities, and comment on what you see.

  Write a program to compute the autarky solution

Write a program to compute the autarky solution, and use it to reproduce Hopenhayn and Nicolini's calibration of r, as described in text.

  Should you make the investment

You are considering an investment that will give you a payoff of $10,000 (thus, I = 10) with probability 0.6 and a payoff of $5,000 (I = 5) with probability 0.4. It will cost you $8,000 to make the investment. Should you make the investment? Why o..

  What is the average variable cost for the 5th unit of output

What is the relationship between the marginal cost and the average variable and average total costs You may fill in all the appropriate numbers and draw a graph with MC, TVC, AVC, TC, ATC, TFC, and AFC, if you wish.

  What is maximum drug developer should be willing to invest

Suppose a drug developer just received a patent on a new chemical compound, which could be used in developing a new drug to control cholesterol. The developer knows (with certainty) that it could successfully develop the compound into a safe.

  What will be rate of return earned by firms in the industry

A firm in a purely competitive industry has a typical cost structure. The normal rate of profit in the economy is 6.00 percent. This firm is earning $15.00 on every $150.00 invested by its founders. What is its percentage rate of return.

  Determine the breakeven number of visitors per year

The Tummy Tugger has fixed costs of $10,000 per year and variable costs of $2.50 per visitor. The Head Buzzer has fixed costs of $4000 per year, and variable costs of $4 per visitor. Provide answers to the following questions so the amusement park..

  What is the optimal level of advertising

Company Y is a monopoly industry. Its contribution margin is estimated at 20% (P-MC)/P = 0.2). From past experience, the owner has determined the following relationship exists between expenditures on advertising and total sales

  What is the official unemployment rate

Assume the following data for a country: total population, 500; population under 16 years of age or institutionalized, 120; not in labor force, 150; unemployed, 23; part-time workers looking for full-time jobs, 10. What is the official unemploymen..

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