Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
A monopolist has two sets of customers. The inverse demand for Group 1 is described by P1 = 200 – Q1. For Group 2, the inverse demand is P2 = 100 – Q2. The monopolist faces constant marginal cost of 40. Let Q be the aggregate quantity demanded.
a. Show that the monopolist’s total demand, if the two markets are treated as one is: Q = 0; P ≥ 200 Q = 200 − P; 100 < P ≤ 200 Q = 300 − 2P ; 0 < P ≤ 100
b. Show that the monopolist’s profit maximizing price is P = 95 if both groups are to be charged the same price. At this price, how much is sold to members of Group 1 and how much to members of Group 2? What is the consumer surplus of each group? What are total profits?
Now suppose that the monopolist can separate the two groups and charge separate, profit-maximizing prices to each group.
c. What will these prices be? What is consumer surplus? What are total profits?
d. If total surplus is consumer surplus plus profit, how has price discrimination affected total surplus?
The United States simultaneously limits imports of ethanol for fuel purposes also provides incentives for the utilize of ethanol in gasoline which raise the price of ethanol by about 15 percent.
The percentage effect which increase in output will have on the profit made from producing and selling commodity Alpha will be.
We have seen that the world saw a great deal of change from 300-900 as it was transitioning from antiquity to the Middle Ages. What do you think were the TWO most significant changes/differences? Your answers can extend to religion, politics, and cul..
Assume a linear town with 100 potential costumers that are uniformly distributed on a unit mile. What are the prices each store will charge for hamburgers? What would their profits be? (b) Intuitively, would both stores be happy with their price and..
A firm purchased some equipment at a very favourable price of $30,000. The equipment resulted in an annual net saving of $1,000 per year during the 8 years it was used. At the end of 8 years, the equipment was sold for $40,000. Assuming interest at 8..
A good without any close substitutes is likely to have relatively _______? demand, because consumers cannot easily switch to a substitute good if the price of the good rises.
illustrate what is the minimum range within which the sample average failure rate must be found to justify with 95% confidence the advertised failure rate of 0.5%.
q1. people sometimes talk about lsquotwin deficit where the twins are the current account and the government budget
A corporate expects to receive $34101 each year for 15 years if a particular project is undertaken. There will be an initial investment of $101962. The expenses associated with the project are expected to be $7654 per year. Assume straight-line depre..
How do oligopolies influence market inefficiencies? a. the industry produces less output b. deadweight loss for society is increased c. prices for those goods are artificially high d. the industry makes higher profits
Bridget has a limited income and consumes only wine and cheese; her current consumption choice is four bottles of wine and 10 pounds of cheese. The price of wine is $10 per bottle, and the price of cheese is $4 per pound. Is Bridget making the utilit..
Utility producing firms often practice second degree price discrimination. How might this help consumer welfare?
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd