Determine what is the rent seeking

Assignment Help Microeconomics

Reference no: EM13207019

A monopolist has a cost function C = 3Q^2 and faces the inverse demand curve P = 1200 - Q

a.) What is the profit maximization price and output?

b.) Sketch the firm's price and output decision. Calculate the deadweight loss.

c.) What iss the firm's total profit?

d.) What is rent seeking? How much, potentially, might this monopolist spend on rent seeking activities? Assume that they will earn the same profit you calculated in part c forever, and that the interest rate is 5%.

Reference no: EM13207019

Questions Cloud

Emphasize the benefits for the audience : Writing persuasively and analyzing your audience go hand in hand. After all, how can you persuade you audience if you don't know who your audience is?

What would be the firms cost disadvantage : Suppose that a firm comtemplating entering the market for breakfast cereal would need to invest $100 million in a production plant (or about $10 million annually on an amortized basis). Such a plant could produce about 100 million pounds of cereal..

Compare this with the literature value of absolute entropy : mole of He atoms at 25.0 degrees celsius and 1.000 atm pressure? Compare this with the literature value of 126.04 J/molK.

What is the simple numerical sum of all the payments : How does the present value of this revenue stream change if the inflation rate is 3.5%? 7.5%? What is the simple numerical sum of all the payments?

Determine what is the rent seeking : What is rent seeking How much, potentially, might this monopolist spend on rent seeking activities Assume that they will earn the same profit you calculated in part c forever, and that the interest rate is 5%.

Describe the shape of your histogram : Describe the shape of your histogram. Is it unimodal, bimodal, or multimodal? Is it symmetric or skew-symmetric?

What is the balance in the account at the end of 20 years : The balance at the end of 20 years is 3 times the balance at the end of 10 years. What is the balance in the account at the end of 20 years?

How efficiency can mean many things to many people : Efficiency can mean many things to many people. Even in economics, there are different types of efficiency. Here we are discussing productive efficiency. An economy is productively efficient whenever it is producing the maximum output with given t..

What is the probability that sample mean breaking strength : What is the probability that the sample mean breaking strength for a random sample of 40 rivets is between 9950 and 10,250? If the sample size had been 15 rather than 40, could the probability requested in part (a) be calculated from the given inf..

User Account

All Pages