Determine optimal price, quantity and economic profit, Microeconomics

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

Complementary slackness condition, Consider the following linear program in...

Consider the following linear program in primal form and develop the dual formulation in a detailed manner. Use matrix notation in developing the dual. Clearly express all the dual

Change in the rate of population growth, Should the manufacture, supply and...

Should the manufacture, supply and use of tobacco be criminalised? Provide arguments for and/or against (relates to defining crime; concepts of deviance etc) Examine t

Socio economic conditions, Socio Economic conditions of country also affect...

Socio Economic conditions of country also affect the sales forecasting. They may include total national income per capita income standard of living of the masses, education, inflat

305, price effect

price effect

Oligopoly, what are the factors causing oligopoly market?

what are the factors causing oligopoly market?

Types of inflation in a country, (a) Describe the different types of inflat...

(a) Describe the different types of inflation in a country. (b) Describe the trade-off between inflation and unemployment, using appropriate diagrams. (c) Mauritius has bee

What is the concept of the development, What is the concept of the developm...

What is the concept of the development? The concept of the development: Development is a complicated multi-dimensional concept to do along with enhancements in the human

Regression methods, This is a very common methods of forecasting demand. Un...

This is a very common methods of forecasting demand. Under this methods a relationship is established between quantity demanded( dependent variable) and independent variables such

Labour economics, Much of the supply-side, fiscally conservative economic p...

Much of the supply-side, fiscally conservative economic policies of Margaret Thatcher, Ronald Reagan, and even Mike Harris in Ontario were predicated on the belief that high income

Average labor productivity, can average labor productivity fall even though...

can average labor productivity fall even though total output is rising

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