Homework Answers
Option (D).
In a kinked demand model, a decrease in price makes demand curve more inelastic. So when price falls to $30, relevant demand curve becomes Demand curve 1 with output of 1100.
Revenue = P x Q = 30 x 1100 = 33,000
Add Answer to:
QUESTION 58 Consider the following information for a firm operating in an oligopolistic industry. The initial...
Consider the following information for a firm operating in an oligopolistic industry. The initial price of...
Consider the following information for a firm operating in an
oligopolistic industry. The initial price of the product is $50,
and the initial quantity is 800.
A) If price is $70 per unit, and firms DO NOT collude, what is
the quantity that the firm will produce and sell? A)
____________________________________ _
B) If price is $70 per unit, and firms DO NOT collude, what is
the firm’s total revenue? B)
____________________________________
C) If the price is $30 per unit,...
Please help! Question 2 Assume that a firm involves on a competitive market. There are 50...
Please help!
Question 2 Assume that a firm involves on a competitive market. There are 50 firms. Variable Marginal Cost Cost 1300 AVC Quantity 0 ATC 15 175 102.5 Total Cost 130 175 205 235 255 280 310 350 410 490 30 20 20 76.3 C7.75 yo Sy. 9 a) Fill this table. b) Find the shutdown point. c) Find the break-even point. d) Now, suppose that the demand is given by Quantity demanded 200 300 400 500 600 700...
Please answer question 4 to question 7. DEMAND/SUPPLY SCHEDULE 1 DEMAND/SUPPLY SCHEDULE 2 &nbs
Please answer question 4 to question 7. DEMAND/SUPPLY SCHEDULE 1 DEMAND/SUPPLY SCHEDULE 2 Price Qd Qs Qd + 200 (at each price) Qs + 200 (at each price) $50 200 800 400 1000 $45 300 700 500 900 $40 400 600 600 800 $35 500 500 700 700 $30 600 400 800 600 $25 700 300 900 500 $20 800 200 1000 400 Assume a price floor of $45 in Schedule 1; what is the result? Assume a price ceiling...
2. (15 points). The demand function for an oligopolistic market is given by the equation, Q 180-4P, where Q is quantity demanded and P is price. The industry has one dominant firm whose margina...
2. (15 points). The demand function for an oligopolistic market is given by the equation, Q 180-4P, where Q is quantity demanded and P is price. The industry has one dominant firm whose marginal cost function is: MC 12+1Qp, and many small firms, with a total supply function: Qs 20+ P. (a) Derive the demand equation for the dominant oligopoly firm. (b) Determine the dominant oligopoly firm's profit-maximizing out- put and price. (c) Determine the total output of the small...
The demand function for an oligopolistic market is given by the equation, Q = 275 – 4P, where Q is quantity demanded and P is price (Note: inverse demand for the dominant firm here is P = 50 - .2Q). T...
The demand function for an oligopolistic market is given by the equation, Q = 275 – 4P, where Q is quantity demanded and P is price (Note: inverse demand for the dominant firm here is P = 50 - .2Q). The industry has one dominant firm whose marginal cost function is: MC = 12 + 0.7QD, and many small firms, with a total supply function: QS = 25 + P. In equilibrium, the total output of all small firms is
1.Consider an industry with only two firms that produce identical products. Each of the firms only...
1.Consider an industry with only two firms that produce identical products. Each of the firms only incurs a fixed cost of $1000 to produce and marginal cost is 20. The market demand function is as follows: Q=q1+q2=400-P a. Assuming that the firms form a cartel, calculate the profit-maximizing quantity of output, price and profits b. If the firms choose to behave as in the Cournot model, what would be the profit- maximizing quantities of output, price and profits? c. if...
Question 7 5 pts Let's say that you know the following information for an oligopoly firm:...
Question 7 5 pts Let's say that you know the following information for an oligopoly firm: Total Revenue equals $200 million. Variable Costs are $170 million. Fixed Costs equal $20 million. The firm is currently producing 2,000 products at the MC = MR point (and the MC curve is rising). What recommendation do you have for this firm? Assuming the firm's costs remain the same, the firm should produce fewer products in order to decrease its marginal costs. The profit...
Consider the following table in which columns (1) and (2) give information about the initial short-run...
Consider the following table in which columns (1) and (2) give information about the initial short-run aggregate supply curve for the fictional country of Zerovia. Column (3) shows total employment at different output levels. There are eight million workers in the total labour force. Usually, 500 000 workers are structurally or frictionally unemployed. TABLE ONE show (1) Price Level (Index) 115 110 105 100 95 750 (2) (3) (5) Aggregate Total Output Output tout Output OutputEmployment Demanded Demanded Demanded billion...
11. Problems and Applications Q11 Suppose that each firm in a competitive industry has the following...
11. Problems and Applications Q11 Suppose that each firm in a competitive industry has the following costs Total Cost: TV-50 + 2 Marginal Cost: MCq where 9 is an individual firm's quantity produced. The market demand curve for this product is: Demand QD 160-4P Type here to search
Suppose that each firm in a competitive industry has the following costs: Total Cost: TC =...
Suppose that each firm in a competitive industry has the following costs:Total Cost: TC=50+1/2 q2Marginal Cost: MC=qwhere q is an individual firm's quantity produced.The market demand curve for this product is:Demand QD=160-4 Pwhere P is the price and Q is the total quantity of the good.Each firm's fixed cost is $_______ What is each firm's variable cost?1/2 q50+1/2 q1/2 q^{2}qWhich of the following represents the equation for each firm's average total cost?50/q+1/2 q50+1/2 q50/q1/2 qComplete the following table by computing the...
Consider the following information for a firm operating in an
oligopolistic industry. The initial price of the product is $50,
and the initial quantity is 800.
A) If price is $70 per unit, and firms DO NOT collude, what is
the quantity that the firm will produce and sell? A)
____________________________________ _
B) If price is $70 per unit, and firms DO NOT collude, what is
the firm’s total revenue? B)
____________________________________
C) If the price is $30 per unit,...
Please help!
Question 2 Assume that a firm involves on a competitive market. There are 50 firms. Variable Marginal Cost Cost 1300 AVC Quantity 0 ATC 15 175 102.5 Total Cost 130 175 205 235 255 280 310 350 410 490 30 20 20 76.3 C7.75 yo Sy. 9 a) Fill this table. b) Find the shutdown point. c) Find the break-even point. d) Now, suppose that the demand is given by Quantity demanded 200 300 400 500 600 700...
2. (15 points). The demand function for an oligopolistic market is given by the equation, Q 180-4P, where Q is quantity demanded and P is price. The industry has one dominant firm whose marginal cost function is: MC 12+1Qp, and many small firms, with a total supply function: Qs 20+ P. (a) Derive the demand equation for the dominant oligopoly firm. (b) Determine the dominant oligopoly firm's profit-maximizing out- put and price. (c) Determine the total output of the small...
Question 7 5 pts Let's say that you know the following information for an oligopoly firm: Total Revenue equals $200 million. Variable Costs are $170 million. Fixed Costs equal $20 million. The firm is currently producing 2,000 products at the MC = MR point (and the MC curve is rising). What recommendation do you have for this firm? Assuming the firm's costs remain the same, the firm should produce fewer products in order to decrease its marginal costs. The profit...
Consider the following table in which columns (1) and (2) give information about the initial short-run aggregate supply curve for the fictional country of Zerovia. Column (3) shows total employment at different output levels. There are eight million workers in the total labour force. Usually, 500 000 workers are structurally or frictionally unemployed. TABLE ONE show (1) Price Level (Index) 115 110 105 100 95 750 (2) (3) (5) Aggregate Total Output Output tout Output OutputEmployment Demanded Demanded Demanded billion...
11. Problems and Applications Q11 Suppose that each firm in a competitive industry has the following costs Total Cost: TV-50 + 2 Marginal Cost: MCq where 9 is an individual firm's quantity produced. The market demand curve for this product is: Demand QD 160-4P Type here to search
Most questions answered within 3 hours.
-
R2.84: There are 2 defective products in a production lot of 10.
An inspector randomly selected...
asked 1 hour ago -
Consider the following equilibrium system: COCl2(g) CO(g) +
Cl2(g) A 10.00 L evacuated flask is filled...
asked 1 hour ago -
1) What are the two distinct steps that one needs to perform
when developing a data...
asked 1 hour ago -
2) Write a C++ program that uses a class called “Degree” to
obtain the trigonometric
values...
asked 2 hours ago -
1. In eukaryotic cells the genomes of
&
asked 2 hours ago -
The standard enthalpy of propanol (C3H7OH) is -303.0 kJ/mol.
Compute both of the
gross and net...
asked 2 hours ago -
Why PWM using H-bridge for control motor speed is more power
effiecient than the linear amplifier...
asked 2 hours ago -
In 1999, Carly Fiorina famously said,"I hope that we are at a
point that everyone is...
asked 2 hours ago -
Individuals in a species of moth vary in wing color from white to
black, but all...
asked 3 hours ago -
The following standards for variable manufacturing overhead have
been established for a company that makes only...
asked 3 hours ago -
The United States government wanted to determine what proportion
of Americans approve of the current president,...
asked 3 hours ago -
2-N stone is dropped from the top of a cliff. The stone hits the
ground 3...
asked 3 hours ago