Assuming clear vision can get economies of scale by being

Assignment Help Microeconomics

Reference no: EM13388890

John Gardener is the city planner in a med size company. The city is considering a proposal to award an exclusive contract to clear vision inc. A cable television carrier. Mr gardener has discovered that an economic planner hired a year beforehas generated the demand, marginal revenue, total cost and marginal cost functions given below:

P=28-0.0008Q

MR=28-0.0016Q

TC=120000+ 0.00062Q^2

MC=0.0012Q

Where Q is the number of cable subscribers and P= the price of basic monthly service. Conditions change slowly in the community so that john considers the cost and demand functions to be reasonably valid for present condition. John knows relatively little economics and has hired you to answer.

A) assuming clear vision can achieve economies of scale by being the only firm in the industry, wat type of market is CLEAR VISION operating in?

B) what price and quantity would be expected if the firm is allowed to operate completely unregulated?

C) john has asked you to recommend a price and quantity that would be socially efficient. Recommend a price and quantity to John using economic theory to justify your answer.

Reference no: EM13388890

Questions Cloud

Illustrate the differences between cost-based and : 1. what are the differences between cost-based and value-based pricing?2. pricing is based on customer perceptions of

In order to develop effective strategies it is critical to : in order to develop effective strategies it is critical to understand the marketplace environment. in this assignment

The partners in crawford company decide to liquidate the : the partners in crawford company decide to liquidate the firm when the balance sheet shows the following. crawford

Conflict identification and resolution we live in a very : conflict identification and resolution. we live in a very complex and culturally diverse society. when we bring

Assuming clear vision can get economies of scale by being : john gardener is the city planner in a med size company. the city is considering a proposal to award an exclusive

What do you mean by optimizing method how does it distinct : 1. is a level strategy a pure or a mixed strategy? and the chase strategy?2. what is a heuristic method?3. what is an

Construct an overview of internal and external : marketing plandevelop an 8-10 page marketing plan for a sports enterprise e.g. professional school or community

Describe the balance scorecard and metrics drawn from this : a explain the balance scorecard and metrics drawn from this to create a metric for training.b explain the connection

Calculate the net present value assuming that the benefits : a highway department is considering building a temporary bridgeto cut travel time during the three years it will take

User Account

All Pages