Microeconomics, Monopoly

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Microeconomics- Monopoly

Suppose Ralph and Ed have the only store that sells toilet bowls in northern Maine. Their nearest competitor is 211 miles away, and these two men have a reputation for producing high-quality toilet bowls. Graphically illustrate what the market for toilet bowls will look like for Ralph and Ed. Shade in the area of profit for Ralph and Ed and label the profit maximizing price (Pe) and quantity (Qe). Then, suppose a new federal law is passed that forces all toilet...
Microeconomics Suppose that a monopoly industry produces less output than a similar competitive industry. Discuss why...

Microeconomics Suppose that a monopoly industry produces less output than a similar competitive industry. Discuss why this may be considered socially undesirable. Is this because it is always socially beneficial to produce more of some product? If competitive firms earn zero economic profits, explain why anyone would invest money in them. (Hint: What is the role of the opportunity cost of capital in economic profit?)
microeconomics

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Microeconomics
Microeconomics

Production for both countries before trade is provided in the following chart. Say that U.S. will trade 8 car bodies and Mexico will trade 10 car engines. Fill in the rest of the chart to find the gains from trade after specialization and trade:U.S. production/consumption before tradeU.S.Production after specializationUS consumptionafter specializationUS Gains from tradeMexico production/consumptionbefore tradeMexicoproduction after specializationMexico consumption after specializationMexicoGains from tradeCar Engines624CarBodies68
microeconomics

Consider a farmer who produces cabbages using tractors and labor inputs. Cabbages are produced using the production function given by Q = x1^ 0.5 x2^ 0.5 , where Q is output, x1 is labor input and x2 is tractor input. a) Define the farmer’s long-run profit maximization problem. b) It takes three months for new tractors to arrive while labor inputs can be changed within a day. Define and solve the profit maximization problem of the farmer for the next month...

microeconomics

Given what you know about the firm pricing behavior and profits in a competitiive market, explain why firms try to differentiate their products and increase the fame of their brands. A firm’s supply function is given by S(p) = 2p. What is its marginal cost at any output level y? What are its profits if the price is given at 10. What are its profits if there are fixed costs of 50?Predatory pricing is the practice of lowering prices below the...
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Is each of the following situations an example of savings, investment, or neither? In each case explain your choice.(a) A savings and loan association lends money for the purchase of “junk" (not backed) bonds.(b) The city of Los Angeles rebuilds highways after an earthquake.(c) In order to improve the income earning potential of current welfare recipients, thefederal government increases the size of income transfers.
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Does thisthis taking place? Show your solution for each answer.production function exhibit diminishing returns? Explain. If so, at which worker is