What price-output combination exist with efficient price

Assignment Help Business Economics
Reference no: EM13152495

1. Suppose a natural monopolist has fixed costs of $50 and a constant marginal cost of $10. The demand for the product is as follows:

Price ($) $100 90 80 70 60 50 40 30 20 10

Quantity demanded per day 0 5 10 15 20 25 30 35 40 45

a) What price and quantity will prevail if the monopolist isn’t regulated?

b) What price-output combination would exist with efficient pricing (MC = P)?

2. Draw a graph with MC, Demand curve and MR curves for the problem above. Show the price-output combination for each of the questions (a) and (b) above.

Reference no: EM13152495

Questions Cloud

Asian conceptions of male strength and beauty : What is the difference between the West's conception of male strength brand beauty and Asian conceptions of male strength and beauty ?
What is the concentration of the solution : A 15.0 gram sample of chromic acid is dissolved in enough water to produce 275 mL of solution. The concentration of the solution is ?
What different features of the dna molecule : Double-stranded DNA molecules have negatively charged sugar-phosphate backbones, and a major and minor groove into which the chemical groups of the bases project.
What is the percent yield for the reaction : If 323 g of magnesium reacts with excess oxygen to produce 296 g of magnesium oxide, what is the percent yield for the reaction?
What price-output combination exist with efficient price : What price-output combination would exist with efficient pricing (MC = P)? Draw a graph with MC, Demand curve and MR curves for the problem above.
What is the molarity of the dye : A student measures k for a certain blue dye to be 24.16 M-1 at 560 nm.What is the molarity of the dye in a solution with an absorbance of 0.118 at 560nm?
What is exactly frequencies : My qualitative variables are people's age and people's job etc... Because young people use the Internet a lot but old people are not use the Internet well.  Also, old people don't know how to use the Internet well. Moreover, young people usually ..
What is the present value of stephany endowment : What is the present value of Stephany’s endowment? What is the future value of her endowment? With blue ink, show the combinations of consumption this year and consumption next year that she can afford in a graph.
Calculate the ph of a sodium cyanide solution : calculate the pH of a sodium cyanide solution that is 0.37M NaCN. The Ka for hydrocyanic acid HCN is 4.00E-10.

Reviews

Write a Review

Business Economics Questions & Answers

  Assume your town decides to levy a tax to raise funds

Assume your town decides to levy a tax to raise funds for construction, maintenance also other expenses for local schools. Should the tax be proportional, progressive or regressive.

  Briefly explain why airlines might be more likely to match

During the course of one day, airlines cut fares on nearly 35,881 routes. (a) Briefly explain why airlines might be more likely to match price cuts than price increases. (b) Which theory of oligopolistic behavior does the above situation most res..

  Explain how much will you be able to spend next year

Suppose that you save all of your money to spend next year. Explain how much will you be able to spend next year. How much will you be able to spend this year.

  Candidate should be selected

Given all the above factors, which candidate should be selected? (b) By how much would the estimated capital investment for the alternate candidate [the candidate not selected above in (a)] have to vary from your first decision in (a)?

  Calculate equilibrium price and quantity

For each scenario, calculate equilibrium price and quantity, total consumer surplus and total producer surplus.

  Why james would rather have sure instead of a gamble

Putting utility on the y-axis and wealth on the x-axis, use a graph to show why James would rather have $100 for sure instead of a gamble where he gets $20 20% of the time and $120 the rest of the time.

  An outcome of the game that both parties

Find the SPNE of this game. Is there an outcome of the game that both parties prefer to any SPNE? Also find a NE for which the outcome differs from any SPNE outcome.

  Hire another employee or buy another copier

they added five workers, and productivity also increased by 50,000 pages per day. Copiers cost about twice as much as workers. Would you recommend they hire another employee or buy another copier?

  Cutting taxes instead of increasing spending

If the government wanted to achieve the same change in GDP as in part 8 by cutting taxes instead of increasing spending, how large would the tax cut need to be.

  Illustrate new equilibrium an increase expenditure

Illustrate what would be new equilibrium if re is an increase in autonomous import expenditure from 100 to 200 which result from an increase in currency exchange rate.

  Compute the percentage change in nominal gdp

Compute the percentage change in nominal GDP, real GDP also the GDP deflator.

  Present worth of costs

You are asked questions about 5 mutually exclusive candidates described as follows (all quantities are in thousands):Candidate 1: Present worth of costs = $1,000; Present worth of benefits = $8,000

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