Pricing and output of monopolies

Assignment Help Macroeconomics

Reference no: EM1315029

As the manager of a monopoly, you face potential government regulation. Your inverse demand is P = 25-Q, and your costs are C (Q) = 5Q.

a. Determine the monopoly price and output.

b. Determine the socially efficient price and output.

c. What is the maximum amount your firm should be willing to spend on lobbying efforts to prevent the price from being regulated at the socially optimal level?

Reference no: EM1315029

Questions Cloud

Etiology and genetics of disease phenylketonuria : Describe the etiology and genetics of the disease phenylketonuria (PKU). Phenylketonuria (PKU) refers to a disease found in the humans in which the affected individual does not have enzyme phenylalanine hydroxylase.

Explain what is the reasonable cost of capital for average : Explain What is the reasonable cost of capital for average and high and low risk projects Suppose a firm estimates its WACC to be 10 %.

Preparation of necessary entries for declaration : Preparation of necessary entries for declaration and payment of dividend and Prepare the necessary entries for the declaration and payment of the stock dividend.

A magician make the statue of liberty disappear : How might a magician make the Statue of Liberty disappear? Imagine that you are sitting with some spectators on a circular platform that, unknown to all of you, can rotate very slowly. It is evening, and you can see the Statue of Liberty a short dist..

Pricing and output of monopolies : As the manager of monopoly, you face potential government regulation. Findout the monopoly price and output.

Fundamental question on accounting for corporations : Fundamental question on accounting for corporations - Preferred Stock and Paid-in Capital in Excess of Par Value-Preferred Stock

Variation between two populations : The means appear to be very close, but not the variances. At α = .05, is there a difference in variances? Show all steps clearly, including an illustration of the decision rule.

Most important contributor to increases in the productivity : the most important contributor to increases in the productivity of Americans labor over the 1929-2000 period was Illustrate what.

Predicting results of experiment conducted with mutant mouse : Studying and predicting results of experiment conducted with mutant mouse. A researcher recently found out a mutant mouse with an interesting T cell phenotype.

User Account

All Pages