Consumer surplus as well as industry profits

Assignment Help Business Economics

Reference no: EM137788

Q. In this problem we consider the differences between the competitive, monopoly, and Cournot equilibria under the same cost conditions. Consider demand as:
Q = 10,000 - 1000 P
and marginal cost (and average cost) is constant at MC = $6.
a. Graph the demand, marginal revenue, and marginal cost curves.
b. Calculate the price and quantity associated with the perfectly competitive conclusion. On your graph label this point. Also compute deadweight loss, consumer surplus as well as industry profits.
c. Calculate the price and quantity associated with a monopoly outcome. On your graph label this point. Also calculate consumer surplus, deadweight loss, and industry profits.
d. Consider the possibility that there are only two firms in the industry and that they compete based on simultaneously determining quantity. Analyze the equilibrium cost and quantity in this case and label it on your graph. Moreover calculate, deadweight loss, consumer surplus as well as industry profits.

Reference no: EM137788

Questions Cloud

Assume the charge on black hole : Assume the charge on black hole is 5740 C. At what distance from it is the electric potential equal to 1100 V.

Current antipoverty policy : You are asked whether current antipoverty policy meets three generally accepted goals of helping, minimizing cost, preserving work incentives also what changes you would favor and why.

Demand curve expressions : Based on the information conveyed by the demand curve expressions, how would you explain the price difference between the two meals.

How many visible-light photons are emitted : If the average frequency emitted by a 200,-, rm W light bulb is 5.00 times 10^ {14}, {rm Hz}, and 10.0 percent of the input power is emitted as visible light, about how many visible-light photons are emitted per second.

Consumer surplus as well as industry profits : Analyze the equilibrium cost and quantity in this case and label it on your graph. Moreover calculate, deadweight loss, consumer surplus as well as industry profits.

What is the mass of the sculpture : A heavy piece of hanging sculpture is suspended by a 146.0 cm long, 8.03 gm wire. When the wind blows hard, wire hums at its fundamental frequency of 113.0 Hz. What is the mass of the sculpture (in kg) assume that the local acceleration due to gravit..

Effect on gold consumption and mining : What is now the effect on gold consumption and mining of an increased use of gold as money.

Find the appropriate null hypothesis for these data : Assuming the nurses surveyed were a simple random sample from the population of all nurses in the United States, find the appropriate null hypothesis for these data

Find out the wavelengths of the light : A 16 cm x 16 cm square loop of wire lies in the xy-plane with its bottom edge on x-axis. The resistance of the loop is 0.490 ohms. A magnetic field parallel to the z-axis is given by B= 0.830 y^2 t, where B is in tesla, y in meters, and t in seconds...

User Account

All Pages