Illustrate what price and quantity will prevail

Assignment Help Business Economics

Reference no: EM1347240

Suppose a natural monopolist has fixed costs of $24 and a constant marginal cost of $2. The demand for the product is as follows:
Price (per unit) $10 $9 $8 $7 $6 $5 $4 $3 $2 $1

Quantity demanded

(units per day) 0 2 4 6 8 10 12 14 16 18 Under these conditions,

(a) Illustrate what price and quantity will prevail if the monopolist is not regulated? (a1) price (a2) quantity

(b) What price-output combination would exist with efficient pricing (MC 5 p )? (b1) price (b2) quantity

Reference no: EM1347240

Questions Cloud

Benefits of activity-based costing : Illustrate out the benefits of activity-based costing. Write down the limitations of activity-based costing.

The dow jones industrial average : Level of the market as calculated by the Dow Jones Industrial Average is currently at 12,000. A predictor has made a prediction of 13,300 for level of the market in one year, along with a 95 percent confidence interval.

Define the intensity outside : A recording engineer works in a soundproofed room that is 45 dB quieter than the outside. If the sound intensity in the room is 1.30 x10-10 W/m2, what is the intensity outside.

Show the strategies for organizational change : Which consist of reasonably priced health insurance plans, vacation, holidays, and tuition reimbursement.

Illustrate what price and quantity will prevail : Illustrate what price and quantity will prevail if the monopolist is not regulated. What price-output combination would exist with efficient pricing.

Storing and compiling a large amount of data : Because information systems are able to store and compile a large amount of data, many people worry that, their private data will end up in the wrong hands. Explain your position.

Merits and demerits of standard costing : What are the advantages and disadvantages of standard costing in management accounting?

What is the angular velocity of the girl : A girl sits fixed on a merry-go-round of mass M = 500 kg and radius R = 2 m. The merry-go-round is at first at rest and is free to rotate without friction.

Explain what theories about motivation underlie : Explain what theories about motivation underlie the switch from salary to commission pay and what needs are met under the commission system

User Account

All Pages