User Account

All Pages

Calculate the monopoly output

Assignment Help Business Economics
Reference no: EM131396025

A monopoly can use one of two alternative technologies. One technologyrequires 10 units of capital and 11 units of labor for each unit of output. The othertechnology requires 20 units of capital and 2 units of labor for each unit of output. Theprices of capital, r, and of labor, w, are r = w = $1 per time period. Thus, the costfunction associated with the first technology is 21 and the cost functioncorresponding to the second technology is 22. The demand function is givenby

Py100 - y

The unregulated monopolist will clearly use the first technology since it is the lower costtechnology.

a) Calculate the monopoly's output, price, and profit if it uses the first technology. Consider a rate of return regulation which allows the monopoly to take as profit only $0.1 per each $1 of capital.

b) What would be the output, price and profit under each technology?

c) Calculate the total surplus in the unregulated monopoly situation under theabove regulation, and in a situation in which the firm is subject to that regulationbut only the first technology is available.

Reference no: EM131396025

Questions Cloud

Explain all variables and methods are named appropriately : Explain All variables and methods are named appropriately. Student will make the second of three parts of a project that will form a tile editor application. In this part, the map and tile selector will be integrated.
What is the significance of the case of in re gault : PSY-623 : . What is the Doctrine of Parens Patriae? Is this an appropriate role for the state to have had or have?What are some of the alternatives to incarceration for a juvenile offender? How effective are these alternatives?What are the requi..
Identify and analyze appeals to the rhetorical triangle : discuss definitional argument and how Dr. King's definition of "wait," "time," and "extremist" changes our understanding of those words, and more importantly, how it affects his main audience, the eight Alabama clergyman that wrote the letter tell..
Discuss david sedariss use of exaggeration : Discuss the different "Englishes" in Amy Tan's essay "Mother Tongue." Also, examine how the "broken English" used by Tan's mother influences her life and writing.
Calculate the monopoly output : Calculate the monopoly's output, price, and profit if it uses the first technology. Consider a rate of return regulation which allows the monopoly to take as profit only $0.1 per each $1 of capital.
In what ways is the us legal system adversarial : In this assignment, you will be able to identify and understand the steps in the proposed ethical decision-making model presented in your textbook by Bush et al. (2006). In addition, you will be able to discuss the strengths and weaknesses of this..
Do you believe the cell phone incident is a big deal : Do you believe the cell phone incident is a big deal? Why or why not and Why is Roc Yang experiencing such a dilemma regarding the cell phone incident? What are the root causes for his dilemma?
Why is demand for healthcare a derived demand : Why is demand for healthcare a derived demand? In reaction to higher input costs, a physician decided to increase the average price of a visit by 5 percent.
Describe how google uses information to make money : How Does Google Make Money? This video explains how Google uses information to make money. Google collects information from websites and adds it to its search engine.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd