Determine Optimal Price, Quantity and Economic Profit, Managerial Economics

Assignment Help:
Determine Optimal Price, Quantity and Economic Profit

A firm has a demand function P = 200 – 5Q and cost function: AC=MC=10 and a potential entrant has a cost function: AC=MC=20.

a. Determine the optimal price, quantity and economic profit for the firm in the short run.
b. If the firm wants to preclude all entry into the market what price, quantity and profit will it choose?
c. What price, quantity, and corresponding profit occur if this a purely Competitive market?
d. Assuming the demand function is identical for all buyers, determine the two-part tariff that maximizes profit for the firm.
e. Determine the optimal price, quantity and economic profit for the firm if it is a pure monopolist.

Related Discussions:- Determine Optimal Price, Quantity and Economic Profit

Calculate the equal amounts of capital and labor, The production function o...

The production function of the personal computers for DISK Company is given by Q = 10 KL where Q is the number of computers produced per day, K s the hours of machine time,

Bank deposit and credit creation, Bank Deposit Bank notes and coins to...

Bank Deposit Bank notes and coins together constitute the currency in circulation.  But they form only a part of the total money supply.  The larger part of the money supply i

Externality in economics, Explain the concept of externality in economics? ...

Explain the concept of externality in economics? Give one example of a positive and a  negative externality in Australia.

Properties of indifference curves, Properties of Indifference Curves ...

Properties of Indifference Curves An indifference curve is usually convex to the origin. Indifference curves slope downwards from left to right. A set

GDP, real GDP is increasingly criticized for its alleged failure to adequat...

real GDP is increasingly criticized for its alleged failure to adequately measure the standard of living. To what extent do you think this criticism is valid?

Monetary policy, Monetary policies This is the direction of the econom...

Monetary policies This is the direction of the economy through the variables of money supply and the price of money.  Expanding the supply of money and lowering the rate of in

Marginal and average cost curves, Relationship between AC, AVC, AFC and MC ...

Relationship between AC, AVC, AFC and MC is elucidated graphically by drawing respective cost curves in Figure below. Behaviour of cost curves is elucidated below. Figure:

Apprehensions about the future price of law of demand, Apprehensions about ...

Apprehensions about the future price of law of demand When consumers anticipate a constant rise in the price of a long-lasting commodity, they buy more of it despite the price

Difference between a static budget and a flexible budget, 1.  What is the d...

1.  What is the difference between a static (master) budget and a flexible budget? Ans:  static budget is where a budget doesn't change a volume changes.  An example could be th

Write Your Message!

Captcha
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