Should the monopolist advertise

Assignment Help Microeconomics
Reference no: EM13162250

A monopolist has two types of customers. There are 100 of TYPE A, who will each pay up tp $10 for a single unit of the good, and 50 of TYPE B, who will each pay up to $8.00. Neither are willing to purchase additional units at any price. If it must find a uniform price what is the price? Assume that spending $80 on advertising will attract 100 more TYPE B customers. Should the monopolist advertise? If so what will happen to the price?

Reference no: EM13162250

Questions Cloud

Determine the number of bromine molecules present in flask : A flask contains 0.110 mol of liquid bromine, Br2. Determine the number of bromine molecules present in the flask.
Find a uniform price what is the price : A monopolist has two types of customers. There are 100 of TYPE A, who will each pay up tp $10 for a single unit of the good, and 50 of TYPE B, who will each pay up to $8.00.
What would the volume of methane at standard temperature : a bacterial culture isolated from sewage produced mL of methane,ch4 at 30C and 749 mmHg. What would the volume of methane at standard temperature and pressure 10 C 760 mmHg'
What is the final volume : a 40.0 ml volume of ethane gas is heated from 25.0 celcius to 50.0 celcius. If the pressure remains constant, what is the final volume?
Should the monopolist advertise : Should the monopolist advertise? If so what will happen to the price and who will each pay up to $8.00. Neither are willing to purchase additional units at any price
What does fu mean in stoichiometry : what does FU mean in stoichiometry?
How many units should each plant produce to maximize profit : How many units should each plant produce to maximize profit at that price and a perfect competitive firm faces a market price of $10 for its output X
What is the osmotic pressure of a solution : What is the osmotic pressure of a solution made from dissolving 90.0 g of glucose, rm C_6H_{12}O_6, in 650 mL of water at 14.0{^circ}C.
Calculate the molar mass of the biomolecule : A 1.90 g sample of a large boimolecule was dissolved in 11.0 g of carbon tetrachloride. The boiling point of this solution was determined to be 77.85°C. Calculate the molar mass of the biomolecule

Reviews

Write a Review

Microeconomics Questions & Answers

  Use a diagram to show demand curve and marginal revenue

Northern Granite Corporation, a corporation in New England, installs granite counter tops in houses. When it 1st entered the business, price per foot for installing a granite counter top was $180 per square foot,

  At what level of output is profit maximized

Elasticity of demand for each of the following showing all calculations and

  Determine the annual holding costs

Southeastern Bell stocks a certain switch connector at its central warehouse for supplying field service offices. The yearly demand for these connectors is 15,000 units.

  Role of advertising for marketplace

In the early 1980's just as serious health effects were being noted regarding sugar consumption, Kellogg's changed the name of Sugar Pops to Corn Pops (the sugar content didn't change) and the name of Sugar Flakes to Frosted Flakes (still sugar co..

  Determining optimal markups and prices

You're the manager of monopoly that sells the product to two groups of consumers in different parts of country. Group 1's elasticity of demand is -2, while group 2's is -6. your marginal cost of producing the product is $10.

  What level of output should this firm produce

What level of output should this firm produce in order to maximize profit or minimize losses - and how many firms in total will there be in this market?

  Describe the revenue - costs and profit

Describe the revenue, costs, and profit that Starbucks expected when it entered this market.

  Explain how trailer sales vary with changes in advertising

Identify any variables that can be rejected as unrelated to sales and explain how trailer sales vary with changes in advertising and trailer rig income.

  Determine the level of income

You have been appointed economic advisor to Exam land. The mpc is 0.6; investment is $1000; government spending is $8000; consumption is $10000;

  Five forces framework

The costs of manufacturing steel declined substantially from building a conventional hot rolled steel mill down to new mini mill technology that need only scrap metal,

  Evaluate the unemployment rate

Dsecribe a complete business cycle (trough, peak, expansion, recession), focusing on what happens to output, investment, employment in each phase.

  Theories of supply and demand for regulation

Environmental Protection Agency regulations tend to go by several stages of review and approval before they are implemented.

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