Homework Answers
Answer:: Option C
Since the patent has provided the Prime Pharmaceuticals to perfectly prime discriminate, it would behave as would the monopoly market behave.
In monopoly market equilibrium is achieved when MR=MC.
Thus, the Prime Pharmaceuticals is at equilibrium at Point E.
To find the producer's surplus , we would extend the line upwards till A.
The shaded area would provide us the producers surplus.
Producer's Surplus = 8 X 4 million
= $ 32 million
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Use the figure below to answer the following questions. Price (dollars per inhaler) 10 7 4....
Use the figure below to answer the following questions. Price (dollars per inhaler) 10 7 4....
Use the figure below to answer the following questions. Price (dollars per inhaler) 10 7 4. 2 MC MR 0 4 8 1216 20 Quantity (millions) 5) Prime Pharmaceuticals has developed a new asthma inhaler, for which it has a patent. An inhaler can be produced at a constant marginal cost of $2 per inhaler. The demand curve, marginal revenue curve, and marginal cost curve for this new asthma inhaler are shown in Figure 13.4.6. The patent gives Prime Pharmaceuticals...
Use the figure below to answer the following questions. Price (dollars per inhaler) 10 7 4....
Use the figure below to answer the following questions. Price (dollars per inhaler) 10 7 4. 2 MC MR 0 4 8 1216 20 Quantity (millions) 3) Prime Pharmaceuticals has developed a new asthma medicine, for which it has a patent. An inhaler can be produced at a constant marginal cost of $2 per inhaler. The demand curve, marginal revenue curve, and marginal cost curve for this new asthma inhaler are shown in Figure 13.4.6. The patent gives Prime Pharmaceuticals...
UIZ 11Suructions Question 3 2 pts The following figure depicts a generalized downward-sloping market demand (D)...
UIZ 11Suructions Question 3 2 pts The following figure depicts a generalized downward-sloping market demand (D) curve for a product. It also shows the firm's relevant marginal revenue (MR) curve and marginal cost (MC) curve. Use this figure to answer the next six questions Price $10 10 + 20 + 30 40 + 50 + 60 Quantity If the firm can price discriminate perfectly, what would the producer surplus be? $120 $0 $160 500 O $40
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Worksheet 7 1. Use the figure below to answer the following questions. P, MR, MC, ATC...
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need the solution for all three questions as soon as
possible
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from question no 6 to 10
Use the graph below to answer questions 6 and 7. Price S100 Supply - MC $50 6. The 0 100 200 Quantity The minimum price this seller will accept for the 100 unit of output is: SO S50 S100 impossible to determine from the graph. b Producer surplus increases from a $50, S100 b. $5,000 $10,000 to when the price increases from $50 to $100 C $2,500 $10,000 $2.500 $20,000 The difference between the...
Score: 0 of 6 pts 5 of 10 (8 complete)> Hw Score: 36%, 21.6 of 60...
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We were unable to transcribe this imageNow, assume that one of the hot dog stands successfully lobbies the city council to obtain the exclusive right to sell hot dogs within the city limits. This fir...
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Use the figure below to answer the following questions. Price (dollars per inhaler) 10 7 4. 2 MC MR 0 4 8 1216 20 Quantity (millions) 5) Prime Pharmaceuticals has developed a new asthma inhaler, for which it has a patent. An inhaler can be produced at a constant marginal cost of $2 per inhaler. The demand curve, marginal revenue curve, and marginal cost curve for this new asthma inhaler are shown in Figure 13.4.6. The patent gives Prime Pharmaceuticals...
Use the figure below to answer the following questions. Price (dollars per inhaler) 10 7 4. 2 MC MR 0 4 8 1216 20 Quantity (millions) 3) Prime Pharmaceuticals has developed a new asthma medicine, for which it has a patent. An inhaler can be produced at a constant marginal cost of $2 per inhaler. The demand curve, marginal revenue curve, and marginal cost curve for this new asthma inhaler are shown in Figure 13.4.6. The patent gives Prime Pharmaceuticals...
UIZ 11Suructions Question 3 2 pts The following figure depicts a generalized downward-sloping market demand (D) curve for a product. It also shows the firm's relevant marginal revenue (MR) curve and marginal cost (MC) curve. Use this figure to answer the next six questions Price $10 10 + 20 + 30 40 + 50 + 60 Quantity If the firm can price discriminate perfectly, what would the producer surplus be? $120 $0 $160 500 O $40
Price und cose (dollars per unc) 50.00 40.00 30.00 20.00 10.00 MR 0 00 200 00 00 00 Quantty (units per hour) The figure above shows the demand curve, marginal revenue curve, and marginal cost curve. The amount of consumer surplus when the market has a monopoly producer is and the amount of consumer surplus when the market is perfectly competitive is A. ace; abf B. abf, ace OC. abf, bed D. ace; bed E. bcd ace
Use the figure below to answer the following questions. Price and cost dollars per unit) 10 Quantity (units) Figure 12.4.1 3) Refer to Figure 12.4.1, which shows the cost curves and marginal revenue curve of a firm in a perfectly competitive market. In the long run, market A) demand will increase. B) demand will decrease. C) supply will increase. D) supply will decrease. E) supply and market demand will decrease. 4) Refer to Figure 12.4.1 which shows the cost curves...
Worksheet 7 1. Use the figure below to answer the following questions. P, MR, MC, ATC $50 ATC MR 100 150 200 250 300 400 Quantity of output (per week) a. What quantity would they sell? What would be the price? b. What will be the profit of this monopoly? c. What will be the consumer surplus in this unregulated monopoly? d. Is this a natural monopoly? Why or why not? e. Suppose this firm was able to practice perfect...
need the solution for all three questions as soon as
possible
Question 1: Hypothetical monopoly costs and revenue Quantity Price Total cost $500 $400 450 650 400 950 350 1,300 300 1,700 NMn using the profit-maximization rule, what should the monopoly price be? Show your work. Question 2: Suppose a monopoly firm produces bicycles and can sell 10 bicycles per month at a price of $700 per bicycle. In order to increase sales by one bicycle per month, the monopolist...
from question no 6 to 10
Use the graph below to answer questions 6 and 7. Price S100 Supply - MC $50 6. The 0 100 200 Quantity The minimum price this seller will accept for the 100 unit of output is: SO S50 S100 impossible to determine from the graph. b Producer surplus increases from a $50, S100 b. $5,000 $10,000 to when the price increases from $50 to $100 C $2,500 $10,000 $2.500 $20,000 The difference between the...
Score: 0 of 6 pts 5 of 10 (8 complete)> Hw Score: 36%, 21.6 of 60 Text Question 2.6 Question Help Suppose a firm is a monopoly. Its marginal cost curve is flat, and its average cost curve is downward sloping (because it has a fixed cost). 1.) Using the point drawing tool, indicate the monopoly's profit-maximizing price and quantity in the figure if it cannot price discriminate. Label this point'e 2.) Using the rectangle drawing tooi, indicate the monopoly's...
We were unable to transcribe this imageNow, assume that one of the hot dog stands successfully lobbies the city council to obtain the exclusive right to sell hot dogs within the city limits. This firm buys up all the rest of the hot dog stands in the city and operates as a monopoly. Assume that this change doesn't affect demand and that the new monopoly's marginal cost curve corresponds exactly to the supply curve on the previous graph. Under this...
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