Under single price = 18
Under price discrimination, set MC=MR
Country | Price | Quantity | Profit | Price | Quantity | Profit |
Italy | 18 | 11 | 110 | 24 | 8 | 128 |
Spain | 18 | 6 | 60 | 16 | 8 | 64 |
Total | 170 | 192 |
Blank - lower
False
Complete the last three columns in the previous table by determining the profit-maximizing price, the quantity...
8. International price discrimination Le Jouet is a French firm, and it is the only seller of toy trains in France and Russia. Suppose that when the price of toy trains increases, Russian children more readily replace them with toy airplanes than French children. Thus, the demand for toy trains in Russia is more elastic than in France. The following graphs show the demand curves for toy trains in France (Dp) and Russia (DR) and marginal revenue curves in France...
7. Forms of Dumping Giocattolo is a profit-maximizing firm that produces toy cars. In Italy, its home country, it enjoys unchallenged market power due to trade barriers that restrict competition. However, Giocattolo also exports toy cars to Spain, where the market is highly competitive. Given this scenario, which of the following statements is correct? O Giocattolo sells toy cars at a lower price in Spain to dispose of its excess inventories. O The demand that Giocattolo faces for toy cars...
Giocattolo is a profit-maximizing firm producing toy cars, which it can produce and sell in its home country, Italy, and abroad in Spain. The average cost (AC) curve on the following graph represents Giocattolo's cost of producing toy cars within one factory, whether in Italy or in Spain. COST (Dollars per toy car) O 0 10 90 100 20 30 40 50 60 70 80 QUANTITY (Thousands of toy cars) Suppose that at the current market price of toy cars,...
Giocattolo is a profit-maximizing firm producing toy cars-a capital-intensive good-which are sold in its home country, Italy, and abroad in Spain. Giocattolo chose foreign production as a method of penetrating the Spanish market and has to decide whether it is more efficient to directly invest in Spain to establish a production subsidiary or to license the technology to a Spanish firm to produce its goods. On the following graph, AVC pis is the average variable cost curve of a Spanish...
Refer to the graph below: Untitled.png a. What is the profit-maximizing quantity and what price will the monopolist charge? a. What is the total revenue at the profit-maximizing output level? b. What is the total cost at the profit-maximizing output level? c. What is the profit? d. What is the profit per unit (average profit) at the profit-maximizing output level? e. If this industry was organized as a perfectly competitive industry, what would be the profit- maximizing price and quantity?...
10. The monopoly firm's profit-maximizing price is: determined for the quantity of output at which MR > MC by the greatest amount. given by the point on the ATC curve for the profit-maximizing quantity. given by the point on the demand curve for the profit-maximizing quantity. found where MR > MC at the monopolist's profit-maximizing quantity of output.
Place the black point (plus symbol) on the following graph to indicate the profit-maximizing price and quantity for BYOB. If BYOB is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if BYOB is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing the loss. Suppose that BYOB charges $2.00 per can. Your friend Jake says that since BYOB is a monopoly with...
MC ATC Dollars MR Q₂ Q, Q₂ Quantity Use the above figure. The profit-maximizing price will be
(e) (8 points) Calculate the Lerner Index at the profit maximizing price and quantity. (f) (16 points) What is the price elasticity at the profit maximizing price and quantity? Is it elastic, unit elastic, or inelastic? 7. Gilead, Johnson and Johnson, Moderna, amongst other are rushing to develop a vaccine for COVID- 19. The organization to develop the vaccine will essentially have a monopoly due to patent rights and other barriers to entry such as costs, production, and expertise. Suppose...
Price ATC MC $50 $28 $18 MR: D 50 75 Quantity What are the profit-maximizing price and quantity? $50 & 50 $18 & 50 O $28 & 50 O $28 & 75