What price-output combination exist with efficient price

Assignment Help Business Economics

Reference no: EM13152495

1. Suppose a natural monopolist has fixed costs of $50 and a constant marginal cost of $10. The demand for the product is as follows:

Price ($) $100 90 80 70 60 50 40 30 20 10

Quantity demanded per day 0 5 10 15 20 25 30 35 40 45

a) What price and quantity will prevail if the monopolist isn’t regulated?

b) What price-output combination would exist with efficient pricing (MC = P)?

2. Draw a graph with MC, Demand curve and MR curves for the problem above. Show the price-output combination for each of the questions (a) and (b) above.

Reference no: EM13152495

Questions Cloud

Asian conceptions of male strength and beauty : What is the difference between the West's conception of male strength brand beauty and Asian conceptions of male strength and beauty ?

What is the concentration of the solution : A 15.0 gram sample of chromic acid is dissolved in enough water to produce 275 mL of solution. The concentration of the solution is ?

What different features of the dna molecule : Double-stranded DNA molecules have negatively charged sugar-phosphate backbones, and a major and minor groove into which the chemical groups of the bases project.

What is the percent yield for the reaction : If 323 g of magnesium reacts with excess oxygen to produce 296 g of magnesium oxide, what is the percent yield for the reaction?

What price-output combination exist with efficient price : What price-output combination would exist with efficient pricing (MC = P)? Draw a graph with MC, Demand curve and MR curves for the problem above.

What is the molarity of the dye : A student measures k for a certain blue dye to be 24.16 M-1 at 560 nm.What is the molarity of the dye in a solution with an absorbance of 0.118 at 560nm?

What is exactly frequencies : My qualitative variables are people's age and people's job etc... Because young people use the Internet a lot but old people are not use the Internet well. Also, old people don't know how to use the Internet well. Moreover, young people usually ..

What is the present value of stephany endowment : What is the present value of Stephany’s endowment? What is the future value of her endowment? With blue ink, show the combinations of consumption this year and consumption next year that she can afford in a graph.

Calculate the ph of a sodium cyanide solution : calculate the pH of a sodium cyanide solution that is 0.37M NaCN. The Ka for hydrocyanic acid HCN is 4.00E-10.

User Account

All Pages