What are the sources of mononpoly, Managerial Economics

Assignment Help:

Question :

i) Consider a discriminating monopolist is selling a product in two separate markets in which demand functions are:

P1 = 6 - Q1
P2 = 18 - 2Q2

The monopolist's total cost function is: TC = 5 + 2Q. Consider you have been employed as the adviser. You are asked to evaluate the prices to be charged in the two markets and amount to be sold in each market so that profits are maximized. You are asked to determine the total profits to be made from the strategy of price discrimination. What advise will you give?

ii) What are the sources of mononpoly?

iii) How can a monopolist deter rivals from entering the market?

iv) Briefly explain the policies which the government can use to correct for externalities which are created by business activities.


Related Discussions:- What are the sources of mononpoly

Show the characteristics of monopoly, Q. Show the Characteristics of monopo...

Q. Show the Characteristics of monopoly? Let's summarise the main characteristics of monopoly as under: Cross-elasticity of demand for a monopoly product is zero in the

Elasticity and consumption expenditure, The relationship between, total exp...

The relationship between, total expenditure and price elasticity of demand has summed up in the below table: Table: Elasticity and Consumption Expenditure Elas

Classification of taxes, CLASSIFICATION OF TAXES Taxes can be classifi...

CLASSIFICATION OF TAXES Taxes can be classified on the basis of: a.     Impact of the taxes It means on whom the tax is imposed.   On the other hand, incidence of the

Real economies of scale, Real economies are delineated as those which are a...

Real economies are delineated as those which are associated with a reduction in the physical quantity of inputs like raw materials, varying kinds of labour and various kinds of cap

Managerial Economics Homework Help-Present Value, Suppose that, in their di...

Suppose that, in their divorce settlement, Ashton Kutcher offers Demi Moore $16 million spread evenly over 8 years (with the 1st payment upfront and the 2nd payment at the end of y

Determinants of the money supply, Determinants of the money supply Two...

Determinants of the money supply Two extreme situations are imaginable.  In the first situation, the money supply can be determined at exactly the amount decided on by the Cen

Neoclassical thinking, neoclassical thinking assumes that all firms are est...

neoclassical thinking assumes that all firms are established to make profit has been challenged by managerial discretion model.How successful have been these models to maximize pro

Optimum combination of resources, Optimum combination of resources The...

Optimum combination of resources The firm can maximise output given costs.  That is when the entrepreneur attains the highest isoquant given a particular Isocost. At t

Evaluate the marketing strategy, Joe is evaluating the marketing strategy a...

Joe is evaluating the marketing strategy at his restaurant and inn. Suppose that in response to a $2.00 off sales promotion for spaghetti dinners, Joe finds that nightly dinner sal

Write Your Message!

Captcha
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