User Account

All Pages

Regulating a monopoly

Assignment Help Business Economics
Reference no: EM132264322

Regulating a Monopoly

Say you have a monopoly that provides a transportation service to a city.

Total investment in infrastructure and busses amount to $65,000,000.00   

The company sells tickets to riders for a fixed price - i.e. one monthly price for any length journey

Monthly demand for tickets is            P = 20.25  - .00005Q

Where P = price of a ticket and Q the number of tickets

TC = $4,625,000 + 30Q + .0003Q2

MC = 30 + .0006Q

  1. Without regulation, how much would a monopoly charge per ticket and how many tickets would it make available?
  2. What would be its ROI?
  3. Assume that you want to regulate the monopoly so that its return on investment does not exceed 8%. How many units must it produce and how much would it charge for each unit?

Reference no: EM132264322

Questions Cloud

What is the common and scientific name : Find an invasive species in your area or somewhere you have been - a plant, animal, insect, fungi. Include the name of the species in the title of your post.
What will its price be today : A zero coupon bond has a face value of $210 and matures in 2 years. The rate of return on equally risky assets is 5% what will its price be today?
Measured in us dollars : In 1990 Sweden had a gdp of $69 billion (measured in us dollars) and a population of 5.0 million. in 2010, Sweden had a gdp of $157 billion
Describe the balancing act of quality versus quantity : Marketers are always faced with a balancing act of quality versus quantity. It becomes a balancing act, because you unquestionably need both to accomplish.
Regulating a monopoly : Say you have a monopoly that provides a transportation service to a city. Total investment in infrastructure and busses amount to $65,000,000.00
Profit potential of the development : We are presented with land use choices. Individuals are free to choose their own development strategy based on the profit potential of the development
Develop question related to a potential treatment or therapy : Develop a question related to a potential treatment or therapy for this condition followed by a hypothesis (you can look on-line for relevant information).
Profit difference between choices : Which of these three pricing choices yields the greatest profit to MedDevices? How much is the profit difference between these choices?
How much should kashian charge for its premium car : Kashian realizes the price of a Luxury Car should be $71,500. How much should Kashian charge for its Premium Car?

Reviews

Write a Review

Business Economics Questions & Answers

  Write equations for total revenue and marginal revenue

a. How many units will be sold at $10 b. Write equations for total revenue and marginal revenue (in terms of Q)

  Find the equilibrium market quantity and price if the market

Find the equilibrium market quantity and price if the market demand is Qd = 320 - 30p. Part four - how much output will each firm produce?

  Leadership in agile project management focuses

Leadership in agile project management focuses on _____. Leadership in traditional project management focuses on _____.

  If labor productivity grew at the rate

If labor productivity grew at the rate of 1.4% per year Illustrate what would average hourly compensation be in the year.

  Consumes two goods-strawberries and other goods

Maria consumes two goods, strawberries and other goods. Because of her exquisite taste, she buys her strawberries from a particular vendor. Her preferences over other goods y and strawberries x is characterized by a utility function U(x, y) = x + y, ..

  How the free market fails at allocating efficient quantity

A coal fire plant that produces electricity emits sulfer dioxide, which causes Acid Rain, into the atmosphere. The market equilibrium price of electricity is $6 per kilowatt hour (kWh) and the market equilibrium quantity is 10 kWh. What type of exter..

  State whether you made a type i error

Consider Scenario A. State whether you made a Type I error, a Type II error, or the correct conclusion.

  Illustrate why does inflation affect the increase in social

Illustrate why does inflation affect the increase in Social Security and other benefits. Is this effect a cost of inflation, as the article suggests.

  Higher losses from an unexpectedly higher inflation rate

An individual would suffer higher losses from an unexpectedly higher inflation rate if

  Terrorism is essentially form of psychological warfare

Terrorism is essentially a form of psychological warfare. One of the costs of terrorism is the cost to democracy, with governments justifying violations of individuals’ rights on the grounds of national security. Conditions in Pakistan provide an env..

  Find the cash coverage ratio

Hedgepeth Inc.’s net income for the most recent year was $16,885. The tax rate was 40 percent. The firm paid $3,976 in total interest expense and deducted $2,655 in depreciation expense. What was the cash coverage ratio for the year? Find the cash co..

  Reverse culture shock refers to the process readapting

Note that reverse culture shock refers to the process readapting to one's home culture following an overseas assignment. Why do you think this might be a challenge?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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