Reference no: EM131335916
A monopolistic seller of fairy dust faces the following inverse demand curve: P = 100 - Q, where Q is smidgens of fairy dust per week. Fairy dust can be produced at a constant marginal cost of $20 per smidgen.
a. Graph this demand curve. Then, calculate the profit-maximizing price and quantity of fairy dust. Finally, calculate the seller's profit.
b. A midsummer's druid festival greatly increases the demand for fairy dust, so that the price any particular consumer is willing to pay doubles. The inverse demand curve is now given by P = 200 - 2Q. Verify graphically that demand has increased and calculate the new profit-maximizing price and quantity.
c. A tour bus full of druids took a wrong left turn at Albuquerque and showed up in town by accident. Now there are twice as many buyers at any price as there were before, and the inverse demand the seller faces is given by P = 100 - 0.5Q. Verify graphically that demand has increased and calculate the new profit-maximizing price and quantity.
d. Suppose that the demand shift the seller faces is a parallel shift of the inverse demand curve such as P = 150 - Q. Verify graphically that demand has increased and calculate the new profit-maximizing price and quantity.
e. What do your answers to (b), (c), and (d) indicate about how monopolistic suppliers respond to increases in demand?
|
Type of customer service
: Describe in 5 sentences - as a space planner what type of customer service should you provide?
|
|
Identify two methods needed to avoid restriction limits
: Identify at least two methods needed to avoid restriction limits. Develop various budget charts that represent segments of the budgeting process. Use technology and information resources to research issues in public budgeting and finance.
|
|
Discussion - racism and privilege
: Discussion: Racism and Privilege. In many societies certain groups possess more resources and hold more power than other groups. In some of these societies, racial discrimination and racial tension also exist
|
|
Type of customer service
: Describe in 5 sentences - as a facilities manager what type of customer service should you provide?
|
|
Calculate the seller’s profit
: Suppose that the demand shift the seller faces is a parallel shift of the inverse demand curve such as P = 150 - Q. Verify graphically that demand has increased and calculate the new profit-maximizing price and quantity.
|
|
Abolish the currency trading restriction
: Why did Belarus decide to abolish the currency trading restriction? What is the effect of this change on the investment of multinational firms in Belarus?
|
|
Article from the opinion page of a national newspaper
: Select an article from the Opinion page of a national newspaper like The Washington Post or The New York Times . You can use a print copy or an online copy. Most newspapers provide free access online. You can also access newspapers via the KU Libr..
|
|
Calculate the profit-maximizing price for this seller
: Suppose the government levies a $4 tax per unit on sellers of handbags. Calculate how this tax will affect the price the monopolist charges its customers.
|
|
Content analysis of mass media content focusing
: Content analysis of mass media content focusing on deviance within a modern society, evaluated according to a rubric.
|