Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Suppose a monopoly can produce any level of output it wishes at a constant marginal (and average) cost of $5 per unit. Assume the monopoly sells its goods in two different markets separated by some distance. The demand curve in the fifirst market is given by and the demand curve in the second market is given by
a. If the monopolist can maintain the separation between the two markets, what level of output should be produced in each market, and what price will prevail in each market? What are total profifits in this situation?
b. How would your answer change if it costs demanders only $4 to transport goods between the two markets? What would be the monopolist's new profit level in this situation?
c. How would your answer change if transportation costs were zero and then the fifirm was forced to follow a single-price policy?
d. Now assume the two different markets 1 and 2 are just two individual consumers. Suppose the fifirm could adopt a linear two-part tariff under which marginal prices charged to the two consumers must be equal but their lump-sum entry fees might vary. What pricing policy should the fifirm follow?
What does this show about elasticity at the profit-maximizing price and quantity?
Using a supply and demand diagram, demonstrate how a positive externality leads to market inefficiency. how might the government help to eliminate this inefficiency.
Guaranteeing a price for new capital to the issuing firm.Selling stock over the Internet.Issuing stock and using the proceeds to purchase bonds.
Jim Duggan made an investment of $10,000 in a savings account10 years ago. This account paid interest of 51/2% for the first 4 years and 61/2% interest.
You can do as you wish with the money you take out, but the other half will be lost as far as you are concerned. In other words, you can give up $15,000.
Describe both the benefits and drawbacks associated with environmental management programs and practices that go beyond compliance or are over compliance.
If n is large (say, n = 2000) but T is small (say. T = 4), do you think that the estimated values of ai are approximately normally distributed? Why or why not?
How does the change of price for brand Purell result from substitute, complementary and independent goods.
Assuming that Venezuelan import companies organize as buyers and bargain favorably with competitive foreign exporters, what is the overall welfare loss to Venezuela as a result of the quota?
We write the percentage markup of price over marginal cost as (P - MC)/P. For a profit-maximizing monopolist, how does this markup depend on the elasticity of demand? Why can this markup be viewed as a measure of monopoly power?
Explain the difference between an endogenous variable and an exogenous variable. Using examples from the national income model outlined in this chapter.
Compare and Contrast Organizational Reporting Requirements. describe the funds used, measurement of performance, and required financial statements for each.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd