Monopolist produces at constant marginal cost

Assignment Help Business Economics

Reference no: EM13735942

A monopolist produces at constant marginal cost c = 1 It sells the product in the domestic market, where demand is Qd = 5 ? Pd, and some foreign markets with total demand Qf = 2 ? Pf Find the prices that will set in each market and the proportion of output that exports. What is the relationship of the price in each market with the relative elasticities of demand? Suppose now that some domestic customers discover that can buy the good of the monopolist in the foreign market, how do you expect that this would change domestic demand and pricing by the monopolist?

Reference no: EM13735942

Questions Cloud

Any other strategy in the reduced form game : There are three ice cream vendors who are deciding where to locate on a beach. The only decision that they have to make is where to locate the store that they have to run. There are 10 positions available on the beach and costumers are uniformly dist..

What are the implications of that for pst : Characterise Peak Sealing Technologies' (PST's) orientation to the market and its overall values and marketing strategy. Summarize succinctly the dilemma the company is facing.

Fixed marketing expenses-fixed admin expenses : A company makes calendars and sells them for $10 each. cost per unit is: direct materials $1.50, direct labor $1.20, variable overhead .90, variable marketing expense .40. Fixed marketing expenses total $13000 and fixed admin expenses total $35000. W..

The demand curve facing a monopoly firm : The demand curve facing a monopoly firm is given by the equation P = 1000-5Q. The firm produces at a constant marginal and average cost equal to $100. Using this information, calculate: The profit maximizing quantity; the profit maximizing price; tot..

Monopolist produces at constant marginal cost : A monopolist produces at constant marginal cost c = 1 It sells the product in the domestic market, where demand is Qd = 5 ? Pd, and some foreign markets with total demand Qf = 2 ? Pf Find the prices that will set in each market and the proportion of ..

Beneficiary of primary market for windows operating system : What is the biggest beneficiary of the primary market (of the multi-sided network effects) for the Windows Operating System?

Prepare a marketing plan for kim woods : Prepare a Marketing plan for Kim woods. The paper for your term project is due this week. Your term project for this class is a 8-15 page marketing plan for the product or service that was approved in your week one proposal

Explain the growth of christianity to decay of roman virtue : Did the emergence and growth of Christianity contribute to the decay of "Roman virtue"? Consider the ways Christianity came into conflict with the Roman State Religion.

Cigarette consumption and consumer spending on cigarettes : According to studies undertaken by the Department of Agriculture, the price elasticity of demand for cigarettes is approximately -0.3 and the income elasticity is approximately 0.5. What effect would a 10% increase in the price of cigarettes due to i..

User Account

All Pages