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Question 2 Consider a monopoly market characterized by the inverse demand curve PL 100-qL for low...
Name: 9. (10 Points) Consider the market for paper towels where the supply curve is upward sloping and the demand curve...
Name: 9. (10 Points) Consider the market for paper towels where the supply curve is upward sloping and the demand curve is downward slopine. (Hint: Draw the graphs to answer the questions below.) a. Suppose there is an effective price ceiling applied on this market. What happens to the Consumer surplus as a result? b. Suppose there is an effective price floor applied on this market. What happens to the consumer surplus as a result? be
2. Consider a market with inverse demand P (Q) = 100 - Q. Assume there are...
2. Consider a market with inverse demand P (Q) = 100 - Q. Assume there are two different duopolies serving it. Duopoly D1 has two firms having unit costs c1 = 6 and c2 = 2, and duopoly D2 has two (symmetric) firms both having unit cost c = 4. (a) Find the Cournot equilibrium in each duopoly. (b) Compare the equilibrium total outputs and market prices in the two duopolies. (c) Compare the equilibrium consumer surplus, total firm revenue,...
In market A, a firm with market power faces an inverse demand curve of P =...
In market A, a firm with market power faces an inverse demand curve of P = 10 – Q and a marginal cost that is constant at $2. In market B, a firm with market power faces an inverse demand curve of P = 8 – 0.75Q and a marginal cost of $2. Producer surplus in market A is _____ than in market B. $4 higher=correct how?
2. Individual demand and consumer surplus Consider the market for yachts. The market price of each...
2. Individual demand and consumer surplus Consider the market for yachts. The market price of each yacht is $140,000, and each buyer demands no more than one yacht. Suppose that Bob is the only consumer in the yacht market. His willingness to pay for a yacht is $245,000. Based on Bob's willingness to pay, the following graph shows his demand curve for yachts. Shade the area representing Bob's consumer surplus using the green rectangle (triangle symbols). Bob's Demand Bob's Consumer...
please help. show coordinates for demand curve as well 2. Individual demand and consumer surplus Consider...
please help. show coordinates for demand curve as well
2. Individual demand and consumer surplus Consider the market for yachts. The market price of each yacht is $140,000, and each buyer demands no more than one yacht. Suppose that Raphael is the only consumer in the yacht market. His willingness to pay for a yacht is $245,000. Based on Raphael's willingness to pay, the following graph shows his demand curve for yachts. Shade the area representing Raphael's consumer surplus using...
Problem 1. Second Degree price discrimination Suppose all consumers are identical and market demand given by...
Problem 1. Second Degree price discrimination Suppose all consumers are identical and market demand given by p = 100-q. The monopoly's cost function is C(q) q2. (a) Suppose the monopolist cannot discriminate prices and must set a uniform price. Compute price and quantity set by the monopolist. Compute the profit of the monopoly. b) Suppose now that the monopoly can set a two-part tariff. Find the optimal two-part tariff. Compute the profit of the monopolist Problem 2. Third Degree price...
1. Consider an individual demand function g 100-5P a. Solve for inverse demand. Plot. b. Suppose...
1. Consider an individual demand function g 100-5P a. Solve for inverse demand. Plot. b. Suppose the market consisted of 5 buyers, each having the same individual demand. Find and plot the market demand c. Use the found market demand to determine the price (and quantity) that would maximize sellers revenue (assuming 1 seller). Ililustrate. (Attempt) If the seller's costs were $5 per unit, what would be the seller's profit-maximizing price and quantity? Illustrate your solution. d. 2. Suppose a...
If a monopoly faces an inverse demand curve of p=330-Q, has a constant marginal and average...
If a monopoly faces an inverse demand curve of p=330-Q, has a constant marginal and average cost of $90, and can perfectly price discriminate, what is its profit? What are the consumer surplus, welfare, and deadweight loss? How would these results change if the firm were a single price monopoly? Profit from perfect price discrimination (T) is S . (Enter your response as a whole number) Corresponding consumer surplus is (enter your response as whole numbers): CSESO welfare is W=$...
Please be descriptive. The inverse market demand curve for bean sprouts is given by P(Q) 100...
Please be descriptive.
The inverse market demand curve for bean sprouts is given by P(Q) 100 2Q, and the marginal cost for any firm in the industry is $4. (a) (10 points) If the bean-sprout industry were perfectly competitive, what would be the industry output and the industry price? be the industry output would and the market price? as a follower. What would be the industry output would and the market price? (b) (20 points) If the firms were operating...
2. Individual demand and consumer surplus Consider the market for yachts. The market price of each...
2. Individual demand and consumer surplus
Consider the market for yachts. The market price of each yacht
is $350,000, and each buyer demands no more than one yacht.
Suppose that Sam is the only consumer in the yacht market. His
willingness to pay for a yacht is $560,000. Based on Sam's
willingness to pay, the following graph shows his demand curve for
yachts.
Shade the area representing Sam's consumer surplus using the
green rectangle (triangle symbols).
Now, suppose another buyer,...
Name: 9. (10 Points) Consider the market for paper towels where the supply curve is upward sloping and the demand curve is downward slopine. (Hint: Draw the graphs to answer the questions below.) a. Suppose there is an effective price ceiling applied on this market. What happens to the Consumer surplus as a result? b. Suppose there is an effective price floor applied on this market. What happens to the consumer surplus as a result? be
2. Individual demand and consumer surplus Consider the market for yachts. The market price of each yacht is $140,000, and each buyer demands no more than one yacht. Suppose that Bob is the only consumer in the yacht market. His willingness to pay for a yacht is $245,000. Based on Bob's willingness to pay, the following graph shows his demand curve for yachts. Shade the area representing Bob's consumer surplus using the green rectangle (triangle symbols). Bob's Demand Bob's Consumer...
please help. show coordinates for demand curve as well
2. Individual demand and consumer surplus Consider the market for yachts. The market price of each yacht is $140,000, and each buyer demands no more than one yacht. Suppose that Raphael is the only consumer in the yacht market. His willingness to pay for a yacht is $245,000. Based on Raphael's willingness to pay, the following graph shows his demand curve for yachts. Shade the area representing Raphael's consumer surplus using...
Problem 1. Second Degree price discrimination Suppose all consumers are identical and market demand given by p = 100-q. The monopoly's cost function is C(q) q2. (a) Suppose the monopolist cannot discriminate prices and must set a uniform price. Compute price and quantity set by the monopolist. Compute the profit of the monopoly. b) Suppose now that the monopoly can set a two-part tariff. Find the optimal two-part tariff. Compute the profit of the monopolist Problem 2. Third Degree price...
1. Consider an individual demand function g 100-5P a. Solve for inverse demand. Plot. b. Suppose the market consisted of 5 buyers, each having the same individual demand. Find and plot the market demand c. Use the found market demand to determine the price (and quantity) that would maximize sellers revenue (assuming 1 seller). Ililustrate. (Attempt) If the seller's costs were $5 per unit, what would be the seller's profit-maximizing price and quantity? Illustrate your solution. d. 2. Suppose a...
If a monopoly faces an inverse demand curve of p=330-Q, has a constant marginal and average cost of $90, and can perfectly price discriminate, what is its profit? What are the consumer surplus, welfare, and deadweight loss? How would these results change if the firm were a single price monopoly? Profit from perfect price discrimination (T) is S . (Enter your response as a whole number) Corresponding consumer surplus is (enter your response as whole numbers): CSESO welfare is W=$...
Please be descriptive.
The inverse market demand curve for bean sprouts is given by P(Q) 100 2Q, and the marginal cost for any firm in the industry is $4. (a) (10 points) If the bean-sprout industry were perfectly competitive, what would be the industry output and the industry price? be the industry output would and the market price? as a follower. What would be the industry output would and the market price? (b) (20 points) If the firms were operating...
2. Individual demand and consumer surplus
Consider the market for yachts. The market price of each yacht
is $350,000, and each buyer demands no more than one yacht.
Suppose that Sam is the only consumer in the yacht market. His
willingness to pay for a yacht is $560,000. Based on Sam's
willingness to pay, the following graph shows his demand curve for
yachts.
Shade the area representing Sam's consumer surplus using the
green rectangle (triangle symbols).
Now, suppose another buyer,...
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