What is the market equilibrium price and quantity

Assignment Help Basic Computer Science
Reference no: EM131757400

Let say the inverse demand curve for K-pop music is characterized by: P = 1- 1/100Q. Where Q is the number of MP3's sold (in thousands) and P is the price per song. Additionally all firms have a constant marginal cost of: MC = 0.10

(a) If the industry was perfectly competitive, what is the market equilibrium price and quantity?

(b) Draw the perfectly competitive industry (i.e. draw the inverse demand curve, MC and label the equilibrium price and quantity). Graphically and mathematically tell me what consumer and producer surplus would be

(c) Suppose that SM entertainment monopolizes the K-Pop industry, tell me what price and quantity this monopolist will charge

(d) On the same graph done in (b), depict the MR curve/ and the answer from (c). Now tell me graphically and mathematically what consumer and producer surplus would be under the monopoly structure

(e) Compare your answer in (d) and (b). How big is the deadweight loss of the monopoly?

Reference no: EM131757400

Questions Cloud

Percent of observations that fall within standard deviation : Calculate the percent of observations that fall within 1, 2, and 3 standard deviations of the mean. How do these results compare with the 68-95-99.7 rule?
Liquidity preference framework : Use the money market diagram (liquidity preference framework) to analyze the effects of the following on the interest rate.
Analyze the effects of the following on real output : Use the Keynesian cross diagram to analyze the effects of the following on real output. (a) Decrease in government purchases (b) Increase in autonomous
Calculate the dollar value of the ending inventory : Using the average cost method of inventory pricing, calculate the dollar value of the ending inventory
What is the market equilibrium price and quantity : (a) If the industry was perfectly competitive, what is the market equilibrium price and quantity?
Potential advantages of fdi for developing countries : What are the three major potential advantages of FDI for developing countries?
Discuss retail method to estimate the value of the inventory : Use the retail method to estimate the value of the inventory as of January 31 given the following financial information
Write a brief summary of assessment : Density of the earth In 1798, the English scientist Henry Cavendish measured the density of the earth several times by careful work with a torsion balance.
Calculate and comment on the working capital ratio : ACC566 - Acc Systems and Processes - Calculate and comment on the Working Capital ratio and Create two charts in Excel from Net Profit after Tax

Reviews

Write a Review

Basic Computer Science Questions & Answers

  Show that the method can be interpreted as an application

Furthermore, the method executes only one price change, which occurs after a minimum cut is identified. The last iteration consists of an augmentation along the artificial arc (t, s)

  Distinction between child and parent process

Write a program that shows the distinction between child and parent process?

  Critical fundamental skills from the it professions

Resources: "Presentation Fundamentals" with Tatiana Kolovou on Lynda.com, Instructions for Completing a Video Technology managers look for three critical fundamental skills from the IT professions hired today:

  Convert the total impedance back to polar form

A series circuit contains two sources of impedance, one of 10(cos 0.7 + j sin 0.7) ohms and the other of 16(cos 0.5 + j sin 0.5) ohms.

  Write a function to print the nth number of the sequence

The Fibonacci sequence is: 1, 1, 2, 3, 5, 8, 13 . . . You can see that the first and second numbers are both 1. Thereafter, each number is the sum.

  Uppercase and one lowercase letter

If the passwords don't match or the rules are not fulfilled, prompt again. Needs to include a method that checks whether a password is valid. The password must be 8 characters long, must have at least one uppercase and one lowercase letter, and mu..

  Intermediate steps for a translation

How the results and intermediate steps for a translation of (20,40,-10), a rotation of 135 degrees about the z-axis applied to a starting point of (45,-95,20). Perform a separate operation applying scale with scale factors of sx=2.0, sy=1.6 and sz..

  How could tcp and udp know the values in the ip header

When adding a per-segment checksum to a segment, TCP and UDP include some fields in the IP layer before the segment has been passed to its underlying layer, the IP layer. How could TCP and UDP know the values in the IP header?

  Performance of receiver-initiated load sharing algorithm

Predict the performance of receiver-initiated load sharing algorithm when entire system workload is generated at only a few nodes in the system instead of equally.

  Scratch for a small fictitious business

Design a database from scratch for a small fictitious business such as a library, car rental, university, retail store, hospital, doctor's office or any other business.

  Write a program that removes all vowels from a file

Write a program that removes all vowels from a file ("disemvowels"). For example, Once upon a time! becomes nc pn tm!. Surprisingly often, the result is still readable; try it on your friends.

  What sample size would produce a margin of error of 3%

Graduation. It's believed that as many as 25% of adults over 50 never graduated from high school. We wish to see if this percentage is the same among the 25 to 30 age group.

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