Calculate perfectly competitive and monopoly price

Assignment Help Business Management

Reference no: EM1367895

Calculating optimal output, price and consumer expenditure

Suppose a perfectly competitive industry cab produce roman candles at a constant marginal cost of $10 per unit. Once the industry is monopolized, marginal costs rise to $12 per candle because $2 per candle must be paid to lobbyists to ensure that only this firm receives a roman candle license. Suppose the market demand for roman candles is given by Qd = 1,000 - 50P and marginal revenue MR = 20 - Q/25.

a) Calculate the perfectly competitive and monopoly price and output.

b) What is the total consumer expenditures on this product under monopoly and under perfect competition?

Reference no: EM1367895

Questions Cloud

Calculate own price and cross price elasticity of demand : Calculate own price and cross price elasticity of demand - Calculate the arc cross-price elasticity of demand for B.B. Lean's deluxe garment bag.

Determining average costs : Karen runs a print shop that makes posters for large companies. It is a very competitive business. What is her AFC per poster (not per thousand!) if she prints 1000 posters? 2000? 10,000?

Large trade deficit with china : The US maintains a large trade deficit with China. The debt is largely due to China's artificially undervalued currency. Should the actions of the Chinese government be considered through trade-governing officials?

Design turing machine having at least four nontrivial states : Design Turing machine (using Sipser notation) having at least 4 nontrivial (i.e., nonrejecting) states and at least six nontrivial (i.e., not to the rejecting state) transitions.

Calculate perfectly competitive and monopoly price : Calculate the perfectly competitive and monopoly price and output and what is the total consumer expenditures on this product under monopoly and under perfect competition?

Nurses in the healthcare organization : What nurses in the healthcare organization is responsible for? What does a typical day intel? How do they relay their information to head nurses and doctors.

Illustrate what distortions do you think would appear : Illustrate what assumptions do you make in answering this question. Illustrate what distortions do you think would appear in economy if such a tax were introduced.

Monopolistically competitive markets : Based upon marginal revenue or marginal cost analysis, explain how output and price are determined in monopolistically competitive markets.

Sales forecasting for schonlind company : Predict the sales for 2006 using exponential smoothing and predict the sales for 2006 using a trend line technique using and sales Forecasting for Schonlind Company

User Account

All Pages