Reference no: EM13184456
Big Phone, Inc. provides local telephone service for customers in a rural area of Oklahoma. The company's total and marginal revenue functions are represented by the equations below:
TR = 100Q - 0.0002Q2
MR = dTR/dQ = 100 - 0.0004Q
Q is the number of customers and both revenues and costs are in dollars per month. Assume that marginal costs are stable at $20 per customer and that fixed costs are negligible.
a) As a monopoly, calculate the firm's output, price, and profits at the profit-maximizing activity level. Show all your work and explain your solution method briefly.
b) What output, price, and profit levels would prevail following expiration of the company's monopoly franchise assuming that vigorous competition evolves between the local cable TV company, voIP firms, and Big Phone, Inc.? Assume that a long-run perfectly competitive market situation is the result. Show all your work and explain your solution method briefly.
c) Compare and contrast your results in parts a) and b). Why is there a difference?
|
Explain what is the hamiltonian of the particle
: Consider a particle that is confined by a one-dimensional quadratic (harmonic) potential of the form U9x)=Ax^2 (where A is a positive real number). A. What is the Hamiltonian of the particle(expressed as a function of velocity v and x)?
|
|
Define a molecule will have a velocity
: Predict the probability P9v) that a molecule will have a given total velocity of more specifically P(v)dv is the probability that a molecule will have a velocity btwn v and v+dv.
|
|
How the velocity in the country of nemedia is always stable
: Velocity in the country of nemedia is always stable.In 2001,the money supply was 100 billion and real GDP was 300 billion .in 2002,the money supply increse by 10 percent,real GDP increased by 5 percent and nominal GdP equaled 660 billion.by how m..
|
|
State when iodine solution is mixed with cyclooctene
: When iodine solution is mixed with cyclooctene, the color of the iodine disappears. Write a reaction that shows the product
|
|
Determine the total and marginal revenue functions
: What output, price, and profit levels would prevail following expiration of the company's monopoly franchise assuming that vigorous competition evolves between the local cable TV company, voIP firms, and Big Phone, Inc. Assume that a long-run perf..
|
|
State the volume of the person can be modeled by a cylinder
: Approximate the percent increse in waste size that occurs when a 155lb person gains 40.0 lbs of fat. Assume that the volume of the person can be modeled by a cylinder that is 4.0 feet tall.
|
|
State separatory funnel containing a compound distributed
: 3 Suppose you added an additional 50 ml of water to a separatory funnel containing a compound distributed between 50 ml of ether and 50 ml of water.
|
|
What is the herfindahl index for this industry
: What is the four-firm concentration ratio in this industry Show all calculations and explain what a concentration ratio.b) What is the Herfindahl index for this industry Show all calculations and explain what a Herfindahl index .c) Suppose..
|
|
State ensuring genetic continuity and transcribed
: An interesting and unique feature of DNA is that it may be both replicated, thus ensuring genetic continuity, and transcribed, to enable expression of the genetic information.
|