What point will only low-quality cars be traded

Assignment Help Business Economics
Reference no: EM133127257

In a market for used cars with perfect information, the price of high-quality cars sell range from $1,000 to $1,200 and low-quality cars from $500 to $700. If q is the share of high-quality cars, at what point will only low-quality cars be traded?

a. q < 66.66%

b. q < 60%

c. q > 33.33%

d. q > 40%

Considering the following market, what is the value of total welfare when the market is in equilibrium? Demand: p = -0.8q + 150, Supply: p = 90 + 5.2q

a. 260

b. 300

c. 142

d. 3,276

A monopolist with marginal costs of production of 40 sells in two Administrative Regions. In Region 1, the demand is given by Q1 = 300 - p1/4. In Region 2, it is given by Q2 = 180 - p2/4. Determine the profit-maximizing price and output levels when discrimination is impossible.

a. P = $620, Q1 = 145, Q2 = 25

b. P = $500, Q1 = 175, Q2 = 55

c. P = $500, Q1 = 205, Q2 = 85

d. P = $40, Q1 = 290, Q2 = 170

A monopolist with marginal costs of production of 40 sells in two Administrative Regions. In Region 1, the demand is given by Q1 = 300 - p1/4. In Region 2, it is given by Q2 = 180 - p2/4. Assuming that discrimination between the two regions is possible, what would be the respective prices and quantities for each Region?

a. P1= $380, P2 = $620, Q1 = 205, Q2 = 25

b. P1 = $500, P2 = $400, Q1 = 175, Q2 = 55

c. P1 = $620, P2 = $380, Q1 = 145, Q2 = 85

d. P1 = $40, P2 = $50, Q1 = 290, Q2 = 170

A monopolist with marginal costs of production of 40 sells in two Administrative Regions. The demand in Region 1 is given by Q1 = 300 - p1/4. In Region 2, it is given by Q2 = 180 - p2/4. How has the firm's profit changed after price discrimination?

a. Increase by $28,900

b. Increase by $7,200

c. Increase by $3,600

d. Increase by $25,300

Reference no: EM133127257

Questions Cloud

Why nutrition and weight status are important for health : Discuss why nutrition and weight status are important for health. Post one reference you used for the evidence-based information you are discussing.
Find the master degree : Suppose you overhear the following statement at a party: "It is just not right that Joe, who never went to college, makes more than Ken, who has a master's degr
Scientific consultant at an educational film company : After graduation you are hired as the scientific consultant at an educational film company. Your first assignment is to outline the plot for a movie that descri
Distinguish between primary deposits and derivative deposits : First, distinguish between primary deposits and derivative (secondary) deposits, making sure to indicate the significance of each in terms of the money supply m
What point will only low-quality cars be traded : In a market for used cars with perfect information, the price of high-quality cars sell range from $1,000 to $1,200 and low-quality cars from $500 to $700. If q
Old male reports dull pain in both knees : A 15-year-old male reports dull pain in both knees. Sometimes one or both knees click, and the patient describes a catching sensation under the patella
Why might an electricity market feature a price cap : a) Why might an electricity market feature a price cap? b) If a price cap is set too low what is the likely result in an energy-only market.
Control as a price floor or price ceiling : Look at the world around you and identify a price control you observe (you can't use minimum wage, rent control, or others I've used during lecture).
Recommend to address or fix the failure : Identify one or two market failures you observe in the world around you (you can't use general ones like rent control, drugs, minimum wage). How would you class

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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