Question

In: Economics

he monopolist: "You Can't Handle the Ruth" sells baseball cards. It has a fixed cost of...

  1. he monopolist: "You Can't Handle the Ruth" sells baseball cards. It has a fixed cost of $5000 in rent, and a variable cost of 2?. Q is t he number of baseball cars wehich are sold. The firm faces a market demand curve of P=200-Q.
  1. What is the firms profits maximizing equilibrium?
  2. How much profits is the firm making?
  3. Should it stay open or shut down?

Solutions

Expert Solution

The equilibrium conditions for the monopolist is MR=MC. All the three parts are solved in detail.

Thank you

Rahul Sunny answered 9 months ago
Next > < Previous

Related Solutions

The monopolist: "You Can't Handle the Ruth" sells baseball cards. It has a fixed cost of...
The monopolist: "You Can't Handle the Ruth" sells baseball cards. It has a fixed cost of $5000 in rent, and a variable cost of 2Q. Q is t he number of baseball cars which are sold. The firm faces a market demand curve of P=200-Q.   What is the firms profits maximizing equilibrium? How much profits is the firm making?   Should it stay open or shut down?  
A company that sells baseball cards claims that 40% of the cards are rookies, 50% are...
A company that sells baseball cards claims that 40% of the cards are rookies, 50% are veterans, and 10% are all stars. Suppose a random sample of 100 cards has 55 rookies, 40 veterans, and 5 all-stars. Card Type Observed Frequency O Expected Frequency E O-E (O-E)2 (O-E)2 E Rookie Veteran All-Star Test the company's claim using a 0.01 level of significance. You may use the empty columns of the table above to assist you. a) State the null and...
   1. Why can't a monopolist charge any price he wishes for his product?      ...
   1. Why can't a monopolist charge any price he wishes for his product?       2. The Government grants a single firm the right to sell food and drink in Yosemite National Park. What are thge tradeoffs associated with such a poicy?       3. Give two examples of natural monopolies. Should the government set price ceilings in natural monopoly markets? Why?       4. Monopolistic competition has some of the same characteristics as monopoly and some of the...
TimmyL Baseball Card Co. buys and sells baseball cards of a famous (ex) San Francisco Giants...
TimmyL Baseball Card Co. buys and sells baseball cards of a famous (ex) San Francisco Giants baseball player. The company was formed in 2015. The post-closing trial balance of that company for the end of operations in that first year is: TimmyL Baseball Card Co. Trial Balance December 31, 2015 Account                                   Debit                       Credit Cash                                                $250,000 Accounts Receivable                                   80,000 Allowance for Bad Debts                                                $ 8,000 Inventory                                 600,000 Supplies                                     10,000 Prepaid Advertising                                             9,000 Land                                                200,000 Building                                  500,000 Accumulated Depreciation-B.                                        ...
TimmyL Baseball Card Co. buys and sells baseball cards of a famous (ex) San Francisco Giants...
TimmyL Baseball Card Co. buys and sells baseball cards of a famous (ex) San Francisco Giants baseball player. The company was formed in 2015. The post-closing trial balance of that company for the end of operations in that first year is: TimmyL Baseball Card Co. Trial Balance December 31, 2015 Account                                   Debit                       Credit Cash                                                $250,000 Accounts Receivable                                   80,000 Allowance for Bad Debts                                                $ 8,000 Inventory                                 600,000 Supplies                                     10,000 Prepaid Advertising                                             9,000 Land                                                200,000 Building                                  500,000 Accumulated Depreciation-B.                                        ...
TimmyL Baseball Card Co. buys and sells baseball cards of a famous (ex) San Francisco Giants...
TimmyL Baseball Card Co. buys and sells baseball cards of a famous (ex) San Francisco Giants baseball player. The company was formed in 2015. The post-closing trial balance of that company for the end of operations in that first year is: TimmyL Baseball Card Co. Trial Balance December 31, 2015 Account                                   Debit                       Credit Cash                                                $250,000 Accounts Receivable                                   80,000 Allowance for Bad Debts                                                $ 8,000 Inventory                                 600,000 Supplies                                     10,000 Prepaid Advertising                                             9,000 Land                                                200,000 Building                                  500,000 Accumulated Depreciation-B.                                        ...
A monopolist meets the demand curve P = 200-8Q. The company has a fixed cost of...
A monopolist meets the demand curve P = 200-8Q. The company has a fixed cost of 200 and a marginal cost of MC = 40. This means that the total cost is TC = 200 + 40Q. How big is the monopoly gain? I repeat if you dont know the answer dont even bother idiots.
1. Why can't a monopolist charge any price he wishes for his product? 2. The Government...
1. Why can't a monopolist charge any price he wishes for his product? 2. The Government grants a single firm the right to sell food and drink in Yosemite National Park. What are thge tradeoffs associated with such a poicy? 3. Give two examples of natural monopolies. Should the government set price ceilings in natural monopoly markets? Why? 4. Monopolistic competition has some of the same characteristics as monopoly and some of the same characteristics as perfect competiton (hence the...
BallCards Inc. sells baseball cards in packs of 15 in drugstores and convenience stores throughout the...
BallCards Inc. sells baseball cards in packs of 15 in drugstores and convenience stores throughout the country. It is the third leading firm in the industry. BallCards has been approached by Pennock Cereal Inc., which would like to order a special edition of cards to use as a promotion with its cereal. BallCards would be solely responsible for designing and producing the cards. Pennock wants to order 25,000 sets and has offered $23,750 for the order. Each set will consist...
6. Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed...
6. Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $377,400, and the sales mix is 20% bats and 80% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $40 $30 Gloves 100 60 a. Compute the break-even sales (units) for both products combined. units b. How many units of each product, baseball bats and baseball gloves,...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT