Homework Answers
Answer) the MR=MC equality helps to determine the profit maximizing level of prices and the output. Since MC=11$ i.e. it is constant. The output is 6 units and the price level is $ 16 (using the demand table)
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Suppose that the following schedule summarizes the sales demand station confronting an oligopolis $ 20 $...
Suppose that the following schedule summarizes the sales (demand) and cost situation confronting a Sweezy oligopoly...
Suppose that the following schedule summarizes the sales (demand) and cost situation confronting a Sweezy oligopoly firm: Price $8 $10 $12 $14 $16 $17 $18 $19 $20 Quantity Demanded 9 8 7 6 5 4 3 2 1 Total Cost $128 $110 $94 $80 $68 $58 $50 $44 $40 a. Graph the demand, marginal revenue, and marginal cost curves facing the firm in a single graph. b. Identify as q*...
A monopoly faces the demand curve P= 11 -0.5Q, where P is measured in dollars per...
A monopoly faces the demand curve P= 11 -0.5Q, where P is measured in dollars per unit and Q in thousands of units. The monopolist has a constant average cost of $6.00 per unit. Draw the average and marginal revenue curves and the average and marginal cost curves. 1.) Using the line drawing tool, draw the average revenue curve and label it 'AR'. $/Q 2.) Using the line drawing tool, draw the marginal revenue curve and label it 'MR'. 3.)...
Use the following data to draw the supply and demand curves on the accompanying graph. Price...
Use the following data to draw the supply and demand curves on the accompanying graph. Price $8 Quantity denanded Quantity supplied 10 6. 6. Instructions: Use the tools provided Supply and Demand' to draw the supply curve and demand curve using the data in the table above. Include each price quantity combination e, each line should contain 8 reference points). Tools Demand Supply 3. 1. 123 10 Quantity (per time period) Pre 1 of 37 Next> e here to search...
Show that after a shift in the demand curve, a monopoly's price may remain constant but...
Show that after a shift in the demand curve, a monopoly's
price may remain constant but its output may rise. For simplicity,
assume that only the slope of the demand curve changes.
1.) Use the line drawing tool to draw the new demand curve.
Label this line
'D1'.
2.) Use the line drawing tool to accurately draw the new
marginal revenue curve. Label this line
'MR1'.
3.) Use the point drawing tool to indicate the new price and
quantity. Label...
Consider a monopolist facing the daily demand curve displayed below. Use the line tool to draw...
Consider a monopolist facing the daily demand curve displayed
below. Use the line tool to draw the marginal revenue curve.
To refer to the graphing tutorial for this question type, please
click here
Part 2 (1 point)
See Hint
Suppose that the monopolist's cost function is given by
?(?)=4?c(y)=4y, where ?y stands for the amount of output produced
daily. The firm's marginal cost equals $
_____ .
Part 3 (1 point)
See Hint
If the monopolist is a profit maximizer, the monopolist will...
LO10-2 7. The following table summarizes the W News, p. 223)? Price Total Quantity Demanded hizes...
LO10-2 7. The following table summarizes the W News, p. 223)? Price Total Quantity Demanded hizes the weekly sales and cost situation confronting a monopolist: Average Total Marginal Revenue Revenue Cost Cost Cost noted Total Marginal Total cost $22 20 $4 18 16 14 12 WNO 8 13 19 27 10 37 51 69 (a) Complete the table. (b) Graph the demand, MR. and MC curves on the following graph. (c) At what rate of out At what rate of...
In some cities, Uber has a monopoly on ride-sharing services. In one town, the demand curve...
In some cities, Uber has a monopoly on ride-sharing services. In one town, the demand curve on weekdays is given by the following equation: P = 50 - 1Q. However, during weekend nights, or surge hours, the demand for rides increases dramatically and the new demand curve is: P = 100 - 1Q. Assume that marginal cost is initially 0. What is the profit maximizing price during weekdays and surge hours? (Round answers to 2 decimal places as needed.) The...
The following is a total cost curve. 1000, Total cost ($) 0 50 100 150 200...
The following is a total cost curve. 1000, Total cost ($) 0 50 100 150 200 250 300 350 Quantity (9) On the diagram to the right, sketch the corresponding marginal cost curve. Marginal cost per unit ($) Using the multipoint curved line drawing tool, draw the firm's marginal cost curve. Label this curve 'MC'. Note: Use the multipoint curved line drawing tool one time to draw the entire curve. If the price of output is $3.00 and there are...
Complete the following labor supply table for a firm hiring labor competitively 9 Marginal Marginal Resource...
Complete the following labor supply table for a firm hiring labor competitively 9 Marginal Marginal Resource Units of Total Labor Revenue Labor (Labor) Cost Wage Rate Cost Product $14 $ na na 1 14 $38 2 14 28 14 24 4 14 20 5 14 14 6 14 1e Show graphically the labor supply and marginal resource (labor) cost curves for this Instructions: 1. Use the line tool (MRC, plot 6 points) to draw the marginal resource cost curve. 2...
Working with Graphs I. Suppose you are given the demand schedule for a monopolist and the...
Working with Graphs I. Suppose you are given the demand schedule for a monopolist and the total cost figures below. Plot the monopolist's demand curve, marginal revenue curve, and marginal cost curve on the graph provided. Determine the optimal level of output for the monopolist. What do total profies equal? (Plot MC and MR on the mid-points) Output per Unit of Time Total Price Cost 0 532 S12 20 25 31 28 24 3 20 4 16 41 12 56...
A monopoly faces the demand curve P= 11 -0.5Q, where P is measured in dollars per unit and Q in thousands of units. The monopolist has a constant average cost of $6.00 per unit. Draw the average and marginal revenue curves and the average and marginal cost curves. 1.) Using the line drawing tool, draw the average revenue curve and label it 'AR'. $/Q 2.) Using the line drawing tool, draw the marginal revenue curve and label it 'MR'. 3.)...
Use the following data to draw the supply and demand curves on the accompanying graph. Price $8 Quantity denanded Quantity supplied 10 6. 6. Instructions: Use the tools provided Supply and Demand' to draw the supply curve and demand curve using the data in the table above. Include each price quantity combination e, each line should contain 8 reference points). Tools Demand Supply 3. 1. 123 10 Quantity (per time period) Pre 1 of 37 Next> e here to search...
Show that after a shift in the demand curve, a monopoly's
price may remain constant but its output may rise. For simplicity,
assume that only the slope of the demand curve changes.
1.) Use the line drawing tool to draw the new demand curve.
Label this line
'D1'.
2.) Use the line drawing tool to accurately draw the new
marginal revenue curve. Label this line
'MR1'.
3.) Use the point drawing tool to indicate the new price and
quantity. Label...
Consider a monopolist facing the daily demand curve displayed
below. Use the line tool to draw the marginal revenue curve.
To refer to the graphing tutorial for this question type, please
click here
Part 2 (1 point)
See Hint
Suppose that the monopolist's cost function is given by
?(?)=4?c(y)=4y, where ?y stands for the amount of output produced
daily. The firm's marginal cost equals $
_____ .
Part 3 (1 point)
See Hint
If the monopolist is a profit maximizer, the monopolist will...
LO10-2 7. The following table summarizes the W News, p. 223)? Price Total Quantity Demanded hizes the weekly sales and cost situation confronting a monopolist: Average Total Marginal Revenue Revenue Cost Cost Cost noted Total Marginal Total cost $22 20 $4 18 16 14 12 WNO 8 13 19 27 10 37 51 69 (a) Complete the table. (b) Graph the demand, MR. and MC curves on the following graph. (c) At what rate of out At what rate of...
In some cities, Uber has a monopoly on ride-sharing services. In one town, the demand curve on weekdays is given by the following equation: P = 50 - 1Q. However, during weekend nights, or surge hours, the demand for rides increases dramatically and the new demand curve is: P = 100 - 1Q. Assume that marginal cost is initially 0. What is the profit maximizing price during weekdays and surge hours? (Round answers to 2 decimal places as needed.) The...
The following is a total cost curve. 1000, Total cost ($) 0 50 100 150 200 250 300 350 Quantity (9) On the diagram to the right, sketch the corresponding marginal cost curve. Marginal cost per unit ($) Using the multipoint curved line drawing tool, draw the firm's marginal cost curve. Label this curve 'MC'. Note: Use the multipoint curved line drawing tool one time to draw the entire curve. If the price of output is $3.00 and there are...
Complete the following labor supply table for a firm hiring labor competitively 9 Marginal Marginal Resource Units of Total Labor Revenue Labor (Labor) Cost Wage Rate Cost Product $14 $ na na 1 14 $38 2 14 28 14 24 4 14 20 5 14 14 6 14 1e Show graphically the labor supply and marginal resource (labor) cost curves for this Instructions: 1. Use the line tool (MRC, plot 6 points) to draw the marginal resource cost curve. 2...
Working with Graphs I. Suppose you are given the demand schedule for a monopolist and the total cost figures below. Plot the monopolist's demand curve, marginal revenue curve, and marginal cost curve on the graph provided. Determine the optimal level of output for the monopolist. What do total profies equal? (Plot MC and MR on the mid-points) Output per Unit of Time Total Price Cost 0 532 S12 20 25 31 28 24 3 20 4 16 41 12 56...
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