User Account

All Pages

Explain the intuition behind the change in price

Assignment Help Business Economics
Reference no: EM132456221

A monopolist's marginal cost of production is constant at $10/output. The prices elasticity of demand for the output the monopolist supplies decreases from -4 to -3. How does that affect the price the monopolist charges (find the price before and after the change in price elasticity)? Explain the intuition behind the change in price.

Reference no: EM132456221

Questions Cloud

Draw a graph of the supply of and demand for euros : Draw a graph of the supply of and demand for euros (in terms of Swiss Francs). Diagram the effect of each of the following on the exchange rate (SF/Euro).
Compensating differences-discrimination : Please give an example (please don't use names if it would violate someone's privacy) of a wage differentiation that you are aware of.
Explain the meaning of the equity home bias : What is the main different between the interest rate parity and the law of one price for tradable goods?
What you gained from the research : "Features and Added values of Simulation models using different modeling approaches supporting policy-making." What you gained from the research.
Explain the intuition behind the change in price : How does that affect the price the monopolist charges (find the price before and after the change in price elasticity)? Explain the intuition behind the change
What is the price elasticity of demand : What is the price elasticity of demand? Is demand elastic or inelastic within this range? What is the change in total revenue? Does this make sense?
What constraints did you experience : What constraints did you experience and how did you handle them? If you had to do the same project again, what changes will you recommend?
Why do extended unemployment benefits lead : Why do extended unemployment benefits lead to longer periods of unemployment? Why does extended benefits create disincentives for work?
Compare and Contrast deontology and utilitarianism : Compare and Contrast deontology and utilitarianism. Briefly discuss the differences between Bentham and Mill's versions of utilitarianism.

Reviews

Write a Review

Business Economics Questions & Answers

  What amount of equity method income

What amount of equity method income would Russell recognize in 2013 from its ownership interest in Thacker.

  What is the equation for average total cost

A typical firm in Industry X has the following total cost and marginal cost functions: TC(q) = q2+210+30q.  What is the variable cost of a typical firm in this industry when it produces 20 units of output. What is the equation for average total cost ..

  Qassume which wall-world and turbo are independently

q.assume which wall-world and turbo are independently deciding whether to implement a new bar code technique. as

  What seems to be causing the collapse of values

Ethics begins at home. What moral and ethical problems do you observe around your school? What seems to be causing the collapse of values, if that is what you perceive? Or what keeps students on a moral and ethical journey?

  Company purchases piece equipment

A company purchases piece equipment for $100,000 with no money down. The company will pay the equipment off over 5 years by paying equal payments at the end of the each year at an interest rate of 6%. How much interest was paid by the company?

  Importation of foreign prescription drugs

1. List two arguments for allowing importation of foreign prescription drugs. 2. List two arguments against the importation of prescription drugs.

  Illustrate what problem exists in the economy

Suppose the price is currently $2. Illustrate what problem exists in the economy. What would you expect to happen to price.

  Slightly ambiguous language contained in the agreement

Discuss a situation in which both parties entering into a contract could benefit from slightly ambiguous language contained in the agreement.

  Benefits of free market capitalism relative

One of the proclaimed benefits of free market capitalism relative to other economic systems or government production

  The provincial department of transportation pays

The provincial Department of Transportation pays Happy Ferry Company to transport cars across a bay that effectively splits the largest city in the province. Happy Ferry Company has submitted a bid of $5 million per year (to be paid to them by the pr..

  Demand is linear function of average ticket price

When the ticket price for a concert at the Arias Magnificas Opera House was $50, the average attendance at concerts at that price was 4012 people per concert. Assuming that demand (the average number n of tickets bought) is a linear function of the a..

  Economic reasoning activity

Miguel owns a sweater store. He notices that when the prices of a sweater decrease by 5%, the quantity demanded increases by 7%.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd