Sets and the overall amount of vases traded

Assignment Help Finance Basics
Reference no: EM132498126

Let the demand for hand-blown glass vases be given by q = 70000 - 2000P, where q is the quantity of glass vases consumed per year and P is the dollar price of a vase. Suppose that there are 1000 identical small sellers of these glass vases. The marginal cost function of such a seller is MC(q) = q + 5, where q is the firm's output. a. Assuming that each small seller acts as a price taker in this market derive the market supply curve, and the equilibrium price and quantity traded. b. Suppose that a new mechanized technique of producing vases is discovered and monopolized by some rm, call it rm B for "BIG." Using this technique, vases can be produced at a constant average and marginal cost of $15 per vase. Consumers cannot tell the difference between vases produced by the old and the new technique. Given the existence of the fringe of small sellers what is the demand curve facing rm B? c. Facing this demand curve, what is the profit-maximizing quantity produced by rm B? What is the price that it sets and the overall amount of vases traded in the market?

Reference no: EM132498126

Questions Cloud

Plot transformed equations on a graph : Following are three sample equations. Plot them on a graph in which Q is on the vertical axis and P is on the horizontal axis. Then transform these equations
Develop a supplier appraisal check list : Task - Identify four sourcing approaches, and for each one, identify and explain how you apply them to a category of spend within your organisation
What is the opportunity cost : You purchased a brand new laptop for an online course you are taking.
What are the projected spontaneous liabilities : Assuming no change in operations from this year to next year, what are the projected spontaneous liabilities? Do not round intermediate calculations.
Sets and the overall amount of vases traded : What is the profit-maximizing quantity produced by rm B? What is the price that it sets and the overall amount of vases traded in the market?
Write down the utility maximization problem subject : Write down the utility maximization problem subject to his budget constraint. Write down the First order conditions for the maximization problem.
What are the projected total operating assets : Sales are expected to grow by 14% next year. Assuming no change in operations from this year to next year, what are the projected total operating assets
State to finance expenses from the recession : Do you think expanding the lottery to a billion dollars with 40 annual payments would be a good method for the state to finance expenses from the recession?
What additional funds needed for the coming year : Use the AFN equation to forecast Broussard's additional funds needed for the coming year. Enter your answer in dollars. For example, an answer.

Reviews

Write a Review

Finance Basics Questions & Answers

  Taxable income-current income tax expense

Calculate taxable income, current income tax expense, deferred income tax expense, and the ending balances in the deferred tax accounts and valuation allowances.

  Compose a business report

Compose a business report describing what the Federal Reserve Board does to combat inflation when the economy is bad. Include a table, chart, or graph.

  What is the average implicit interest rate

What is the average implicit interest rate on a $100,000 account if the bank's average management costs are $2,500 and annual fees average $1,750?

  Financial reasoning behind choice

What would you ultimately choose to do? What is your financial reasoning behind this choice? Consider supporting your answer with quantitative data.

  Joe has two children sydney age 5 and william age 2 that he

joe has two children sydney age 5 and william age 2 that he wants to provide for their education funding. currently

  What line items represent variable costs

You are asked to project the feasibility of opening a new outpatient clinic. Using the assumptions below, answer each question.

  The dividend yield on a stock index is 32 per annum the

the risk-free rate of interest is 7 per annum with continuous compounding and the dividend yield on a stock index is

  What is total cost of new car of the business property

What is the total cost of the new car that will be treated as part of the business's property, plant and equipment?

  Create a scatter chart matrix for the given data

Bravman Clothing sells high-end clothing products online and through phone orders. Bravman Clothing has taken a sample of 25 customers who placed orders.

  Century witnessed a flurry of losses

The first decade of the 21st century witnessed a flurry of losses, bankruptcies, acquisitions, and strategic partnerships in the airline industry. The heavily levered firms in the industry are particularly susceptible to increases in fuel prices, ..

  What must google sell for in three years

Google stock is currently priced at $900.00 this morning. The stock does not pay a dividend. An investor wants a 9.00% return to hold the stock and will hold.

  What is the cost of preferred stock for kyle

Cost of preferred stock. Kyle is raising funds for his company by selling preferred stock. The preferred stock has a par value of $79 and a dividend rate of 7.8%. The stock is selling for $66.97 in the market. What is the cost of preferred stock f..

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