Homework Answers
Ans) A profit maximising firm produces the quantity where MR and MC curve intersect and then uses demand curve to determine the price.
Peak load price is when higher price is charged during rush times.
P1 is the peak time price.
P1 is weekends price and Q1 is weekends quantity.
P2 is weekdays price and Q2 is weekdays quantity.
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Consider the market for snow skiing illustrated in the graph to the right. Suppose that on...
Consider the market for snow skiing illustrated in the graph to the right. Suppose that on...
Consider the market for snow skiing illustrated in the graph to the right. Suppose that on the weekend, demand is D. However, on weekdays, demand becomes D2 If a snow ski resort engages in peak-load pricing, then what prices should it charge? 1.) Using the point drawing tool, identify the profit-maximizing price and quantity on weekends and label it "Weekends'. $/0 2.) Using the point drawing tool, identify the profit-maximizing price and quantity for weekdays and label it 'Weekdays! 3.)...
Consider the market represented by the figure to the right. Suppose this market has one firm....
Consider the market represented by the figure to the right. Suppose this market has one firm. The figure assumes the firm has no fixed costs. 500.00 Suppose the firm is able to capture all consumer surplus by charging different prices to different customers. 450.00 Using the triangle drawing tool, shade in the firm's profits and label it 'Profits'. Carefully follow the instructions above and only draw the required object. Now suppose the firm can only charge a single price. 1.)...
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...
Amonopoly has a constant marginal cost of production of $2 per unit and no foed costs In the figure to the right, l...
Amonopoly has a constant marginal cost of production of $2 per unit and no foed costs In the figure to the right, let D be demand and MR be marginal revenue ed 1.) Using the line drawing tool, graph the monopoly's marginal cost curve Label this curve 'MC 2) Using the line drawing tool graph the monopoly's average variable cost curve Label this curve 'AVC 3.) Using the line drawing tool graph the monopoly's average cost curve Label this curve...
Suppose a firm is a monopoly. Its marginal cost curve is flat, and its average cost...
Suppose a firm is a monopoly. Its marginal cost curve is flat,
and its average cost curve is downward sloping (because it has a
fixed cost).
1.) Using the point drawing
tool,
indicate the monopoly's profit-maximizing price and quantity in
the figure if it cannot price discriminate. Label this point
'e 1e1.'
2.) Using the rectangle drawing
tool,
indicate the monopoly's losses at the no price discrimination
profit-maximizing price and quantity. Label this rectangle
'Losses 1Losses1.'
3.) Using the point...
A monopoly has a constant marginal cost of production of $4 per unit and no fixed...
A monopoly has a constant marginal cost of production of $4 per unit and no fixed costs. In the figure to the right, let D be demand and MR be marginal revenue. 1.) Using the line drawing tool graph the monopoly's marginal cost curve. Label this curve 'MC! 2.) Using the line drawing tool, graph the monopoly's average variable cost curve. Label this curve 'AVC.' 3.) Using the line drawing tool, graph the monopoly's average cost curve. Label this curve...
A monopoly has a constant marginal cost of production of $2 per unit and no fixed...
A monopoly has a constant marginal cost of production of $2 per unit and no fixed costs. In the figure to the right, let D be demand and MR be marginal revenue. TTT 1.) Using the line drawing tool, graph the monopoly's marginal cost curve. Label this curve 'MC.' 2.) Using the line drawing tool, graph the monopoly's average variable cost curve. Label this curve 'AVC.' p, $ per unit 3.) Using the line drawing tool, graph the monopoly's average...
Score: 0 of 6 pts 5 of 10 (8 complete)> Hw Score: 36%, 21.6 of 60...
Score: 0 of 6 pts 5 of 10 (8 complete)> Hw Score: 36%, 21.6 of 60 Text Question 2.6 Question Help Suppose a firm is a monopoly. Its marginal cost curve is flat, and its average cost curve is downward sloping (because it has a fixed cost). 1.) Using the point drawing tool, indicate the monopoly's profit-maximizing price and quantity in the figure if it cannot price discriminate. Label this point'e 2.) Using the rectangle drawing tooi, indicate the monopoly's...
Homework: L9. Monopoly Score: 0 of 1 pt 7 of 11 (0 complete) HW Score: 0%,...
Homework: L9. Monopoly Score: 0 of 1 pt 7 of 11 (0 complete) HW Score: 0%, 0 of 1 Concept: Profit Maximization Question Help @ Suppose the figure to the right represents the market for diamond necklaces, where the company that supplies necklaces is a monopoly because it is the only firm with access to diamond mines. What is the firm's profit-maximizing price and quantity? What are profits? 1.) Use the point drawing tool to indicate the profit-maximizing price and...
7-9, The Snow City Ski Resort caters to both out-of-town skiers and local skiers. The demand...
7-9, The Snow City Ski Resort caters to both out-of-town skiers and local skiers. The demand for ski tickets for each market segment is independent of the other market segments. The marginal cost of servicing a skier of either type is $1O. Suppose the demand curves for the two market segments are Out of town: o 600 10P Local: Qi=600-20P a. If the resort charges one price to all skiers, what is the profit-maximizing price? Calcu- late how many lift...
Consider the market for snow skiing illustrated in the graph to the right. Suppose that on the weekend, demand is D. However, on weekdays, demand becomes D2 If a snow ski resort engages in peak-load pricing, then what prices should it charge? 1.) Using the point drawing tool, identify the profit-maximizing price and quantity on weekends and label it "Weekends'. $/0 2.) Using the point drawing tool, identify the profit-maximizing price and quantity for weekdays and label it 'Weekdays! 3.)...
Consider the market represented by the figure to the right. Suppose this market has one firm. The figure assumes the firm has no fixed costs. 500.00 Suppose the firm is able to capture all consumer surplus by charging different prices to different customers. 450.00 Using the triangle drawing tool, shade in the firm's profits and label it 'Profits'. Carefully follow the instructions above and only draw the required object. Now suppose the firm can only charge a single price. 1.)...
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...
Amonopoly has a constant marginal cost of production of $2 per unit and no foed costs In the figure to the right, let D be demand and MR be marginal revenue ed 1.) Using the line drawing tool, graph the monopoly's marginal cost curve Label this curve 'MC 2) Using the line drawing tool graph the monopoly's average variable cost curve Label this curve 'AVC 3.) Using the line drawing tool graph the monopoly's average cost curve Label this curve...
Suppose a firm is a monopoly. Its marginal cost curve is flat,
and its average cost curve is downward sloping (because it has a
fixed cost).
1.) Using the point drawing
tool,
indicate the monopoly's profit-maximizing price and quantity in
the figure if it cannot price discriminate. Label this point
'e 1e1.'
2.) Using the rectangle drawing
tool,
indicate the monopoly's losses at the no price discrimination
profit-maximizing price and quantity. Label this rectangle
'Losses 1Losses1.'
3.) Using the point...
A monopoly has a constant marginal cost of production of $4 per unit and no fixed costs. In the figure to the right, let D be demand and MR be marginal revenue. 1.) Using the line drawing tool graph the monopoly's marginal cost curve. Label this curve 'MC! 2.) Using the line drawing tool, graph the monopoly's average variable cost curve. Label this curve 'AVC.' 3.) Using the line drawing tool, graph the monopoly's average cost curve. Label this curve...
A monopoly has a constant marginal cost of production of $2 per unit and no fixed costs. In the figure to the right, let D be demand and MR be marginal revenue. TTT 1.) Using the line drawing tool, graph the monopoly's marginal cost curve. Label this curve 'MC.' 2.) Using the line drawing tool, graph the monopoly's average variable cost curve. Label this curve 'AVC.' p, $ per unit 3.) Using the line drawing tool, graph the monopoly's average...
Score: 0 of 6 pts 5 of 10 (8 complete)> Hw Score: 36%, 21.6 of 60 Text Question 2.6 Question Help Suppose a firm is a monopoly. Its marginal cost curve is flat, and its average cost curve is downward sloping (because it has a fixed cost). 1.) Using the point drawing tool, indicate the monopoly's profit-maximizing price and quantity in the figure if it cannot price discriminate. Label this point'e 2.) Using the rectangle drawing tooi, indicate the monopoly's...
Homework: L9. Monopoly Score: 0 of 1 pt 7 of 11 (0 complete) HW Score: 0%, 0 of 1 Concept: Profit Maximization Question Help @ Suppose the figure to the right represents the market for diamond necklaces, where the company that supplies necklaces is a monopoly because it is the only firm with access to diamond mines. What is the firm's profit-maximizing price and quantity? What are profits? 1.) Use the point drawing tool to indicate the profit-maximizing price and...
7-9, The Snow City Ski Resort caters to both out-of-town skiers and local skiers. The demand for ski tickets for each market segment is independent of the other market segments. The marginal cost of servicing a skier of either type is $1O. Suppose the demand curves for the two market segments are Out of town: o 600 10P Local: Qi=600-20P a. If the resort charges one price to all skiers, what is the profit-maximizing price? Calcu- late how many lift...
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