Price-discriminating monopolist faces

Assignment Help Macroeconomics
Reference no: EM131373011

A price-discriminating monopolist faces the following inverse demand functions:

In Market One it is P1 = 80-Q1 and in Market Two it is P2 = 60-Q2 . Marginal cost is constant at $10.

Consumers in market two can resell the good to consumers in market one at a cost of $4 per unit.

Find the profit-maximizing quantity and price charged in each market subject to the resale constraint.

Reference no: EM131373011

Questions Cloud

Justify the effects of detecting organizational gaps : Analyze key elements using ADDIE (analyze, design, develop, implement and evaluate) of training and development geared toward improving the performance of the specific small business for which you are consulting.
Equilibrium price and quantity in the market : 1. Using Microsoft Excel, draw a graph illustrating the supply and demand in this market. 2. What is the equilibrium Price and Quantity in the market?
Explain the term interest weapon : Explain the term "interest weapon" and in which situations the National Bank can/will be forced to use this mechanism. If the Swedish government agree to devaluate the Swedish currency by 10%, in the short run who will then have a benefit of this; A..
What is the general effect of dehydration on the body : Write an essay of at least 350 words that explains the basic functions and sources of minerals and water in the body. Include what you learned about minerals, water, and dehydration from the article. Provide responses to the following:Mention two ..
Price-discriminating monopolist faces : A price-discriminating monopolist faces the following inverse demand functions: In Market One it is P1 = 80-Q1 and in Market Two it is P2 = 60-Q2 . Marginal cost is constant at $10.
How is this concept of leadership meaningful in your life : Consider Frankl as a character in his own story. Using De Pree's (2004) work (the sections we have read so far) as a point of reference, do you think that Frankl demonstrated any leadership qualities in Part I of Man's Search for Meaning? What abo..
What is occupy wall street : What is Occupy Wall Street?, What is Occupy Wall Street? The history of leaderless movements, The Occupied Wall Street Journal, Both Frankl (2006) and Covey (2004) assert that happiness can only occur as a side-effect. Frankl tells us, "happiness ..
Calculate profit in each market and joint profit : Marginal cost is constant at $5. Find the profit-maximizing quantity and price charged in each market. Calculate profit in each market and joint profit.
What is the difference between being centered on someone : What is the difference between being centered on something/someone, and finding a source of meaning through something/someone? Why is it occasionally important to stop and question which category important things in your life (like school) are fal..

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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!

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