Reference no: EM13191941
Suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of concrete. The firm has fixed costs of $30 million per year and a variable cost of $5 per bag no matter how many bags are produced.
a. If this firm kept on increasing its output level, would ATC per bag ever increase? Is this a decreasing-cost industry?
b. If you wished to regulate this monopoly by charging the socially optimal price, what price would you charge?
At that price, what would be the size of the firm's profit or loss? Would the firm want to exit the industry?
c. You find out that if you set the price at $6 per bag, consumers will demand 30 million bags. How big will the firm's profit or loss be at that price?
d. If consumers instead demanded 40 million bags at a price of $6 per bag, how big would the firm's profit or loss be?
e. Suppose that demand is perfectly inelastic at 40 million bags, so that consumers demand 20 million bags no matter what the price is. What price should you charge if you want the firm to earn only a fair rate of return? Assume as always that TC includes a normal profit.
What will the final concentration of no be after equilibrium
: the concentrations in this system were found to be [N2]=[O2]=0.100 M and [NO]=0.500 M. N2(g)+O2(g)2NO(g) If more NO is added, bringing its concentration to 0.800 M, what will the final concentration of NO be after equilibrium is re-established?
|
Find the upper and lower darboux sums
: Find the Upper and Lower Darboux Sums given F(x) = 5 - 3x on [0,2] and partition P = {tsub0 = 0, tsub1 = 2/n, tsub2 = 4/n, and tsub3 = 2}
|
Find the mean and variance of the number of ink jet printer
: A computer store has 50 printers of which 30 are laser printers and 20 are ink jet printers. If a group of 10 printers is chosen at random from the store, find the mean and variance of the number of ink jet printers.
|
Define what are its molar mass and its molecular formula
: An unknown gas sample with a mass of 3.17 g and a volume of 0.7521 L at 293.0 K under 1.023 atm has CH2Cl for its empirical formula. What are its molar mass and its molecular formula?
|
Why would the firm want to exit the industry
: Suppose that demand is perfectly inelastic at 40 million bags, so that consumers demand 20 million bags no matter what the price is. What price should you charge if you want the firm to earn only a fair rate of return Assume as always that TC incl..
|
What is the area of the parallelogram
: A parallelogram has adjacent sides of 176 ft and 312 ft. The altitude to the shorter side is 290 ft. What is the area of the parallelogram.
|
What percent of the available tickets was not sold
: There were 400 tickets available for a school play. 368 tickets were sold. What percent of the available tickets was not sold?
|
State the precipitation reaction with balanced molecular
: What are the precipitation reaction with balanced molecular, total ionic and net ionic equations for na2
|
How many will encounter undesireable side effects
: the theoritical probability of undesirable side effects resultiing from taking grebex is 2 in 13. if 260 people take grebex , how many will encounter undesireable side effects.
|