What principles and insights from microeconomic theory

Assignment Help Microeconomics
Reference no: EM13563151

NBL is a monopoly producer of baseballs. Suppose that the demand for baseballs is given as
Q=40,000-20,000P
Where P is in dollars per baseball. Baseballs can be produced in a facility in Southeast Asia where the total cost function is:
C(Q1)=(1/20,000)(Q1)2
Baseballs can also be produced in a facility in Latin America where the total cost function is:
C(Q2)=(1/40,000)(Q2)2

What principles and insights from microeconomic theory guide the profit-maximizing monopolist when allocating the firm's total production of baseballs into the two geographically distinct plant facilities?

Illustrate geographically the monopolist's problem. What is the monopolist's optimal total production level over both production facilities, and what is the optimal production allocation for baseballs in the two distinct production facilities? Is any output produced in the Southeast Asia production facility, given that its cost curve is higher than that for Latin America, at all common output levels? Why or why not?

What is the optimal price of baseballs (Show calculations)? How many are produced in Southeast Asia? How many in Latin America? What are the total profits to NBL?

Reference no: EM13563151

Questions Cloud

Discuss how childe harold''s pilgrimage reflects : Discuss how Childe Harold's Pilgrimage reflects the Romantic characteristic that places emphasis on the value of the unique individual.
Obtain the index of refraction of the transparent material : Light in vacuum is incident on the surface of a slab oftransparent material. What is the index of refraction of the transparent material
Find the cournot-nash equilibrium : Find the Cournot-Nash Equilibrium. Calculate the profits of each firm at this equilibrium.
Calculate what is the intensity outside : ecording engineer works in a soundproofed room that is52.0 dB quieter than the outside. what is the intensity outside
What principles and insights from microeconomic theory : What principles and insights from microeconomic theory guide the profit-maximizing monopolist when allocating the firm's total production of baseballs into the two geographically distinct plant facilities?
Explain water had a small drop of phenolphthalein indicator : A researcher places 2 grams of lithium into a large beaker of water and catches the hydrogen gas being evolved. Since the water had a small drop of phenolphthalein indicator, the indicator turned a red color indicating that a base, lithium hydroxi..
What ar the prices charged : What ar the prices charged, total product shipped to each market, and the total profits to the monopolist under the following two conditions?
Obtain the change in the period of the heated pendulum : A simple pendulum consists of a ball connected to one end of athin brass wire. The period of the pendulum is 1.81 s. obtain the change in the period of the heated pendulum
What is the user cost of capital associates with owning : What is the user cost of capital associates with owning the MB for the next year?

Reviews

Write a Review

Microeconomics Questions & Answers

  The democratic congress passed legislation sending

when output and employment slowed in early 2008 the bush administration and the democratic congress passed a

  Determining monopolist demand function

Derive a total revenue function and a marginal revenue function for the firm. Calculate the profit maximizing level of price and output for One and Only Inc.

  Write down the profit-maximizing prices and quantities of

suppose that the ford motor company can produce any quantity of cars at a constant marginal cost equal to 15000 and a

  Explain what is apr for a fund

How much can he withdraw at the end of each month to have the fund last 20 years?  How many years will the fund last if he withdraws $100,000 up front for a vacation condominium and then withdraws $2,000 at the end of each month.

  Which price constitute firm 2''s optimal commitment strategy

Which price constitutes firm 2's optimal commitment strategy? Justify your answer and explain why it makes sense.

  What is the standard deviation of the investment

An investment opportunity will pay $10 with a 20% probability, $20 with a 40% probability, $30 with a 30% probability, and $40 with a 10% probability. what is the standard deviation of the investment?

  Calculate the final tax revenue

Is it possible to collect new tax revenue, and at the same time guarantee that the poor individual will not be made worse-off by the new carbon tax? Be specific, and make sure you calculate the final tax revenue. Assume the government is able to o..

  What is its corresponding marginal cost curve

TC=0.2Q^2-5Q+30(Q^2 means Q square) a) What is its corresponding marginal cost curve b) If the firm faces a price of $6 per unit, what quantity should it sell c) What profit does the firm make at this price d) Should the firm shut down

  The productivity standard for the distribution of income

Explain why the productivity standard for the distribution of income entails rewarding people based on their contribution to society total output.

  Write the difference between scarcity and rarity do bill

what is the difference between scarcity and rarity? do bill gates and donald trump face scarcity and if yes how so?

  Diseconomies of scale

Describe why some firms might suffer diseconomies of scale. Do you know any examples? Could GM be an example of diseconomies of scale?

  Who competes with a second firm which had been a monoplist

The second firm finds that although demand is not perfectly elastic, it is now relatively more elastic. what will happen to the second firms marginal revenue curve and to its profit-maximizing price. competes with a second firm which had been a mon..

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