Suppose that in a city there are 100 identical stores selling the same product. The total...
Suppose that in a city there are 100 identical stores selling the same product. The total daily market demand function for the produce in the market is QD =250,000 – 10,000P, where P is expressed in dollars per unit. The daily market supply curve is QS = -50,000 + 20,000P
a. Determine algebraically the equilibrium price and quantity of product.
b. Now suppose the market is monopolized (e.g., a cartel is that determines price and quantity as a monopolist would). Determine the monopolist’s profit-maximizing price and quantity.
c. What is the dead weight loss (DWL)?
Homework Answers
Equilibrium is achieved when Quantity demanded= quantity supplied
So 250,000-10,000P= -50000+20000P
250000+50000=20000P+10000P
750000=30000P
P=750000/30000
P=25
Add Answer to:
Suppose that in a city there are 100 identical stores selling
the same product. The total...
Suppose that market demand for a good is given by QD(P) = 10−P. The total cost...
Suppose that market demand for a good is given by
QD(P) = 10−P. The total cost of production is TC(Q) =
2Q2. Determine quantity QM and price
PM that a monopolist will choose in this market.
Calculate consumer surplus (CS), producer surplus (PS), and the
deadweight loss (DWL) resulting from the monopoly. Graphical
Solution would suffice!
1) (25 points) Suppose that market demand for a good is given by Q”(P) - 10-P. The total cost of production is TCQ) =...
4. (90pts) Suppose that the market Demand for beer in Ireland, QD, is given by P=...
4. (90pts) Suppose that the market Demand for beer in Ireland, QD, is given by P= 900 - QD. (1) There are two identical suppliers of beer in the Irish market, each of which has the identical Supply schedule of beer, Qs, given by the following P = 100 + 2Qs. (2) We note that the price of beer is expressed in dollars, and the quantities are expressed in kegs ("barrels”) of beer per day. a. (10pts) Calculate the market...
a-d 3) There are 1,000 identical perfectly competitive real-estate fimms selling office space in Syracuse, NY....
a-d
3) There are 1,000 identical perfectly competitive real-estate fimms selling office space in Syracuse, NY. The Marginal Cost of producing each square foot of space is constant and equal to $20. There are no fixed costs of production. So the firm's short-run and long-run cost function is c(q) = 200. The market demand is Q = 10,000 - 250p. a) What is the equilibrium price and quantity of office space in the real estate market in the short-run? How...
2. Suppose that the daily market for red wine in the Quad Cities is estimated by:...
2. Suppose that the daily market for red wine in the Quad Cities is estimated by: Qd = 100 - 5P Qs = -8 +4P Where P is in dollars per bottle, and Q is the number of bottles. a. (1) Solve algebraically for equilibrium price and quantity. Now suppose that a tax of $9 per unit is levied on this product. As a result, the supply curve shifts upward by the vertical distance of $9. d. (1) What is...
I need help please Suppose the market demand and supply functions are QD = 2450 – 10P and QS = 15P + 100. You have just...
I need help please Suppose the market demand and supply functions are QD = 2450 – 10P and QS = 15P + 100. You have just graduated and moved to this city; as a new MBA and an entrepreneur, you are considering entering the market for this product. a. Determine the equilibrium price and quantity in this market. b. You’ve researched and found that most firms in the market currently experience costs such that TC = 50 + 115Q –...
Consider the daily market for hot dogs in asmall city. Suppose that this market is...
Consider the daily market for hot dogs in a
small city. Suppose that this market is in long-run competitive
equilibrium with many hot dog stands in the city, each one selling
the same kind of hot dogs. Therefore, each vendor is a price taker
and possesses no market power. The following graph shows the demand (D) and supply curves (S = MC) in the market for hot dogs. Place the black point (plus symbol) on the graph to indicate the market price...
Homework (Ch 15) Consider the daily market for hot dogs in a small city. Suppose that...
Homework (Ch 15) Consider the daily market for hot dogs in a small city. Suppose that this market is in long-run competitive equilibrium with many hot dog stands in the city, each one selling the same kind of hot dogs. Therefore, each vendor is a price taker and possesses no market power MC) curves in the market for hot dogs The following graph shows the demand (D) and supply (S Place the black point (plus symbol) on the graph to...
Show answers Consider a market in which there are 9 identical firms. Marginal cost of each...
Show answers Consider a market in which there are 9 identical firms. Marginal cost of each firm is given by MCi= 2qi, and there are no fixed costs. Market demand is given by Qd= 90- 3P. 27) Refer to Scenario 2. Assume perfect competition, so each firm is a price taker; then at market equilibrium, P= $______; Q= ______; and qi= ______. 28) Refer to Scenario 2. Assume perfect competition, ...; then at market equilibrium, each firm makes profits= $______;...
For this problem, do not worry if prices and quantities are not "realistic." Suppose that the...
For this problem, do not worry if prices and quantities are not "realistic." Suppose that the market for photocopies in Washington DC is perfectly competitive, and is given by the following equations: QP = 72-P QS = 5P where is the daily demand for copies in DC and Q is the total supply curve of all copy stores together in DC. What is the equilibrium price and quantity of copies in DC? P =$ .' = copies Now, consider the...
Question #5: (10 points) Suppose that a monopolist produces an identical product in three plants and...
Question #5: (10 points) Suppose that a monopolist produces an identical product in three plants and face an inverse demand function P = 40 - QF = Q, + Q, +Q,. The output from the three plants is where total quantity in all three plants is Q produced at the costs c = Q + Q C₂ = 30, z = 2Q - Qz where C refers to the total cost required to produce Q, units from each facility, i...
Suppose that market demand for a good is given by
QD(P) = 10−P. The total cost of production is TC(Q) =
2Q2. Determine quantity QM and price
PM that a monopolist will choose in this market.
Calculate consumer surplus (CS), producer surplus (PS), and the
deadweight loss (DWL) resulting from the monopoly. Graphical
Solution would suffice!
1) (25 points) Suppose that market demand for a good is given by Q”(P) - 10-P. The total cost of production is TCQ) =...
4. (90pts) Suppose that the market Demand for beer in Ireland, QD, is given by P= 900 - QD. (1) There are two identical suppliers of beer in the Irish market, each of which has the identical Supply schedule of beer, Qs, given by the following P = 100 + 2Qs. (2) We note that the price of beer is expressed in dollars, and the quantities are expressed in kegs ("barrels”) of beer per day. a. (10pts) Calculate the market...
a-d
3) There are 1,000 identical perfectly competitive real-estate fimms selling office space in Syracuse, NY. The Marginal Cost of producing each square foot of space is constant and equal to $20. There are no fixed costs of production. So the firm's short-run and long-run cost function is c(q) = 200. The market demand is Q = 10,000 - 250p. a) What is the equilibrium price and quantity of office space in the real estate market in the short-run? How...
2. Suppose that the daily market for red wine in the Quad Cities is estimated by: Qd = 100 - 5P Qs = -8 +4P Where P is in dollars per bottle, and Q is the number of bottles. a. (1) Solve algebraically for equilibrium price and quantity. Now suppose that a tax of $9 per unit is levied on this product. As a result, the supply curve shifts upward by the vertical distance of $9. d. (1) What is...
Homework (Ch 15) Consider the daily market for hot dogs in a small city. Suppose that this market is in long-run competitive equilibrium with many hot dog stands in the city, each one selling the same kind of hot dogs. Therefore, each vendor is a price taker and possesses no market power MC) curves in the market for hot dogs The following graph shows the demand (D) and supply (S Place the black point (plus symbol) on the graph to...
For this problem, do not worry if prices and quantities are not "realistic." Suppose that the market for photocopies in Washington DC is perfectly competitive, and is given by the following equations: QP = 72-P QS = 5P where is the daily demand for copies in DC and Q is the total supply curve of all copy stores together in DC. What is the equilibrium price and quantity of copies in DC? P =$ .' = copies Now, consider the...
Question #5: (10 points) Suppose that a monopolist produces an identical product in three plants and face an inverse demand function P = 40 - QF = Q, + Q, +Q,. The output from the three plants is where total quantity in all three plants is Q produced at the costs c = Q + Q C₂ = 30, z = 2Q - Qz where C refers to the total cost required to produce Q, units from each facility, i...
Most questions answered within 3 hours.
-
what is the duistribution channels of HUL in india and how they
distribute?
how is this...
asked 1 minute ago -
Batteries play an important role in our everyday lives. From
making many devices mobile, to allowing...
asked 13 minutes ago -
It is possible to iterate through an array quickly and easily
using a loop?
asked 21 minutes ago -
Determine the pHpH of an HFHF solution of each of the following
concentrations. The KAKA value...
asked 17 minutes ago -
Two point charges of 7.0mL are initially 11.5m apart. What is
the change in potential energy...
asked 18 minutes ago -
Please write as a short answer
You have heartburn and a two hour working session on...
asked 22 minutes ago -
Please solve with excel and mention the excel function.
Thanks
Kevin deposits $10,000 in a savings...
asked 24 minutes ago -
Which Special Journal would the following transaction be
journalized in?
Sold merchandise on account to Customer...
asked 36 minutes ago -
Assuming 100% dissociation, calculate the freezing point (?fTf)
and boiling point (?bTb) of 1.45 ? K3PO4(aq)1.45...
asked 38 minutes ago -
An inflated helium balloon with a volume of 0.35L at
sea level (1.0 atm) was allowed...
asked 40 minutes ago -
Python 3.0 Please
Write a function that takes, as arguments, a binary string, a
list of...
asked 1 hour ago -
(a) Calculate the momentum of a 2150 kg elephant charging a
hunter at a speed of...
asked 56 minutes ago