Determine what total profit would the monopolist make

Reference no: EM13220188

A market contains two types of consumers, green and yellow. Each green consumer has a demand of P = 20-Q. Each yellow consumer has a demand of P=16-Q. These are individual demand curves. The monopolist who sells to these individuals has a MC = 8 and FC =10. A. If the monopolist can recognize a consumer as either green or yellow, what bundle would they sell each kind of consumer? What total profit would the monopolist make? B. If the monopolist cannot recognize either group, what is the optimal bundle size(s)? C. How would your answer to 'B' change if their were three times as many green consumers?

Reference no: EM13220188

Questions Cloud

What promotion of the annual salary will be economic rent : The City of New York has 200 advertising companies, 199 of which employ designers of normal ability at a salary of $100,000 a year. Paying this salary, each of the 199 firms makes a normal profit on $500,000 in revenue.

Which companys marker share do you think will grow : Two car manufacturers, Saab and Volvo, have fixed costs of $1 billion and marginal costs of $10,000 per car. If Saab produces 50,000 cars per year and Volvo produces 200,000, calculate the average production cost for each company.

Explain is the franc selling at a premium or discount : The 1-year interest rate in the U.S. is 10%; in Switzerland it is 12%. The current spot rate (dollars per franc) is $0.40. a. What do you expect the 1-year forward rate to be b. Is the franc selling at a premium or discount

Define the solutions are a mixture of salts : a solution of 4.00 g of sodium carbonate is mixed with one containing 4.00 g of silver nitrate. after the reaction is complete, the solutions are a mixture of salts.

Determine what total profit would the monopolist make : A market contains two types of consumers, green and yellow. Each green consumer has a demand of P = 20-Q. Each yellow consumer has a demand of P=16-Q. These are individual demand curves. The monopolist who sells to these individuals has a MC

What is the marginal cost of an increase in w1 : Assume a firm wants to minimize its cost of producing y amount using x1 and x2 as inputs, which means it wants to minimize w1x1 + w2x2 subject to x1^(1/2)x2^(1/2)= y: (a) Using Lagrange multiplier method, find optimal x1 and x2 as functions of w1,w2 ..

Explain compound that has a measured vapor pressure : Determine ΔHvap for a compound that has a measured vapor pressure 24.3 torr at 273 K and 135 torr at 325 K: 1. 34 kJ/mol, 2. 13 kJ/mol, 3. 24 kJ/mol, 4. 79 kJ/mol, 5. 41 kJ/mol

How much labor should bad breath hire n what wage should pay : Bad Breath, Inc. Sells its output at $1 per unit into competitive markets. Bad Breath's factory is the only employer of labor in Gilroy, California. It faces a supply from competitive workers of QL = w where QL is the number of workers hired per year

Define what is the chloride concentration ppt : If the standard deviation of your pipet is 0.018 mL, what is the chloride concentration ppt (W/V) of you sample?

User Account

All Pages