User Account

All Pages

Calculate the output the firm will provide

Assignment Help Microeconomics
Reference no: EM131123243 , Length:

Your consulting firm was just granted an exclusive contract for your state. You now must decide your pricing policy, given the following relationships:

P = $1400 - 0.0004Q

MR = $1400 - 0.0008Q

AVC = $1000

where P is the price, Q the quantity, and AVC the average variable cost.

The firm will encounter no fixed costs, and all revenue is after taxes. As your firm has been granted an exclusive contract, your pricing and output decisions will be those of a monopolist.

Tasks:

1. Using the data above, calculate the output the firm will provide.

2. Determine the price at this output level.

3. Complete the Microsoft Excel Template given below using the data in the problem.

4. Check whether your data is consistent with your calculations in question 1. Why or why not?

5. Now assume that the state decides to give as many contracts as it can for the same activity, so your firm is now operating in a perfectly competitive market. How will your price and output decisions change? Explain the differences and why these changes happened.

Attachment:- Template.xlsx

Verified Expert

In this assignment, the pricing and output decisions of monopolist is estimated and when the market is opened up for perfect competition, how does this pricing and output decisions of the firm changes is also estimated.

Reference no: EM131123243

Questions Cloud

Current issues in historical context project "syria crises" : Write research paper on Current Events / Issues In Historical Context Project Topic is "Syria crises"
Find the approximation of both the relative and percentage : Suppose that fluid is leaking from an overhead pipe and spreading in the shape of a circle on the ground. If the radius of the circle is increasing at a rate of 0.5 feet per minute, how fast is the area of the circle increasing when the radius is ..
Advised against eating wild caught fish : Mercury in fish is a public health concern. People are sometimes advised against eating wild- caught fish because of high levels of mercury. The data in mercury.txt were collected as part of a survey of lakes in Maine. The 120 lakes in the study w..
What is the role of pleasure in maintaining the good life : What is the role of pleasure in maintaining the Good Life? Discuss three examples of how pleasure does not contribute to attaining the Good Life
Calculate the output the firm will provide : Calculate the output the firm and determine the price at this output level - Complete the Microsoft Excel Template given below using the data in the problem.
State the titles of the articles and why you chose them : State the titles of the articles and why you chose them. List the source or URL of the articles. Summarize the articles. Discuss what our textbook says about the topic.
Explain the concept of e-discovery : Explain the concept of e-Discovery and discuss the role of health information management in the e-Discovery process. Why would having a clear definition of the provider/institution's designated record set be important in e-discovery?
What is the probability that all of the parts were produced : What is the probability that seven, eight, or nine parts were produced by machine B?
The purposes of making an informed decision : The admissions office at a Business School for the purposes of making an informed decision whether or not to admit a student wishes to predict a student's performance from their available data.

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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