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Problem 1 (4 points) Knope Industries is a firm...
Grace is the owner-operator of the only supplier of artificial turf (fake grass) in a small...
Grace is the owner-operator of the only supplier of artificial turf (fake grass) in a small town. Market demand is given by Q = 12,000 – 100p and marginal revenue is given by MR = 120 -0.02Q. Quantity is measured in square yards and price is measured in dollars per square yard. Grace's cost structure includes the following: Total Cost: C = 250,000 + 200 Marginal Cost: MC = 20 Average Cost: AC 250,000 Q + 20 (a) Calculate the...
This is a price setting firm problem.(show all work) Demand Function: P=32-Q Total Cost Function:...
This is a price setting firm problem.(show all work) Demand Function: P=32-Q Total Cost Function: C=Q²+8Q+4 Profit maximizing price is.....? Profit maximizing quantity is......? Profit is......? Lerner Index Value is......? Price Elasticity of Demand is......? To maximize sales, this firm would change a price...... and sell a quantity of..........?
(e) (8 points) Calculate the Lerner Index at the profit maximizing price and quantity. (f) (16...
(e) (8 points) Calculate the Lerner Index at the profit maximizing price and quantity. (f) (16 points) What is the price elasticity at the profit maximizing price and quantity? Is it elastic, unit elastic, or inelastic? 7. Gilead, Johnson and Johnson, Moderna, amongst other are rushing to develop a vaccine for COVID- 19. The organization to develop the vaccine will essentially have a monopoly due to patent rights and other barriers to entry such as costs, production, and expertise. Suppose...
answer parts a-d. show all work. 1. Suppose you are a monopolist facing the following demand...
answer parts a-d. show all work.
1. Suppose you are a monopolist facing the following demand curve: PD 200-5Q Further assume you have the following cost structure: C() 5+100+ 100 Given these formulas, please answer the following questions: a. What is the profit-maximizing price and quantity? How profit does this yield? Full credit answers will verify that Q relates to a profit maximum and show all work. (5 pts) b. What is the socially efficient price and quantity? How much...
A single firm monopolizes the entire market for single-lever, ball-type faucets, which it can produce at...
A single firm monopolizes the entire market for single-lever, ball-type faucets, which it can produce at a cost of 20Q. Originally the firm faces an inverse market demand curve given by P=80-Q. Calculate the profit-maximizing price and quantity for the firm. Suppose that the market demand curve shifts outward and becomes steeper. Market demand is now described as P=100-2Q. What is the firm’s profit maximizing price and quantity now? What is the firm’s profit? Assume now that the market demand...
How do I solve this problem? 4. Benson's Park is a monopolist in the local camping market in the town of West Anderson. They face an inverse demand curve given by P-400-8Q, where Q is the number o...
How do I solve this problem?
4. Benson's Park is a monopolist in the local camping market in the town of West Anderson. They face an inverse demand curve given by P-400-8Q, where Q is the number of tickets they sell. The park's cost function is C(Q)-100+160 Write down Benson's profit function (2 point) Find the first-order condition for profit maximization. (2 points) Find the profit-maximizing price and quantity, and the maximum profit. (3 points) a. b. c. d. Calculate...
1. Suppose that a single-price monopolist faces the demand function P 100 Q where I is...
1. Suppose that a single-price monopolist faces the demand function P 100 Q where I is average weekly household income, and that the firm's marginal cost function is given by MC(Q) 2Q. The firm has no fixed costs. = (a) If the average weekly household income is $600, find the firm's marginal revenue function. (b) What is the firm's profit-maximizing quantity of output? At what price will the firm sell that output? What will the firm's marginal cost be? (c)...
11.3 A single firm monopolizes the entire market for Batman masks and can produce at constant...
11.3 A single firm monopolizes the entire market for Batman masks and can produce at constant average and marginal costs of AC=MC=10: Originally, the firm faces a market demand curve given by Q=60-P a. Calculate the profit-maximizing price-quantity combination for the firm. What are the firm’s profits? b. Now assume that the market demand curve becomes steeper and is given by Q=45-0.5P with the marginal revenue function given by MR=90-4Q: What is the firm’s profit-maximizing price quantity combination now? What...
When the iPad was introduced, Apple's constant marginal cost of producing this iPad was about $220...
When the iPad was introduced, Apple's constant marginal cost of producing this iPad was about $220 We estimate that Apple's inverse demand function for the iPad was p 770-11Q where Q was the millions of iPads purchased. In turn, Apple's profit.maximizing quantity was Q 25 million iPads and its profit-maximizing price was p $500 per unit What was the Lerner Index for the iPad? If Apple were profit maximizing, what price elasticity of demand did it face? Enter your response...
Grace is the owner-operator of the only supplier of artificial turf (fake grass) in a small town. Market demand is given by Q = 12,000 – 100p and marginal revenue is given by MR = 120 -0.02Q. Quantity is measured in square yards and price is measured in dollars per square yard. Grace's cost structure includes the following: Total Cost: C = 250,000 + 200 Marginal Cost: MC = 20 Average Cost: AC 250,000 Q + 20 (a) Calculate the...
(e) (8 points) Calculate the Lerner Index at the profit maximizing price and quantity. (f) (16 points) What is the price elasticity at the profit maximizing price and quantity? Is it elastic, unit elastic, or inelastic? 7. Gilead, Johnson and Johnson, Moderna, amongst other are rushing to develop a vaccine for COVID- 19. The organization to develop the vaccine will essentially have a monopoly due to patent rights and other barriers to entry such as costs, production, and expertise. Suppose...
answer parts a-d. show all work.
1. Suppose you are a monopolist facing the following demand curve: PD 200-5Q Further assume you have the following cost structure: C() 5+100+ 100 Given these formulas, please answer the following questions: a. What is the profit-maximizing price and quantity? How profit does this yield? Full credit answers will verify that Q relates to a profit maximum and show all work. (5 pts) b. What is the socially efficient price and quantity? How much...
How do I solve this problem?
4. Benson's Park is a monopolist in the local camping market in the town of West Anderson. They face an inverse demand curve given by P-400-8Q, where Q is the number of tickets they sell. The park's cost function is C(Q)-100+160 Write down Benson's profit function (2 point) Find the first-order condition for profit maximization. (2 points) Find the profit-maximizing price and quantity, and the maximum profit. (3 points) a. b. c. d. Calculate...
1. Suppose that a single-price monopolist faces the demand function P 100 Q where I is average weekly household income, and that the firm's marginal cost function is given by MC(Q) 2Q. The firm has no fixed costs. = (a) If the average weekly household income is $600, find the firm's marginal revenue function. (b) What is the firm's profit-maximizing quantity of output? At what price will the firm sell that output? What will the firm's marginal cost be? (c)...
When the iPad was introduced, Apple's constant marginal cost of producing this iPad was about $220 We estimate that Apple's inverse demand function for the iPad was p 770-11Q where Q was the millions of iPads purchased. In turn, Apple's profit.maximizing quantity was Q 25 million iPads and its profit-maximizing price was p $500 per unit What was the Lerner Index for the iPad? If Apple were profit maximizing, what price elasticity of demand did it face? Enter your response...
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