Question

In: Economics

Compare the monopoly firm to competitive firm in all of their aspects. Given the following demand...

Compare the monopoly firm to competitive firm in all of their aspects.

Given the following demand function of shoes facing Ahmad's company

Q = 1,500 - 200P

Where Q is quantity sales of shoes and P is price.

A. How many shoes could Ahmad sell at $4.50 each?

B. What price would Ahmad's company have to charge to sell 900 shoes?

C. At what price would shoes sales equal zero?

Find the equilibrium price and equilibrium quantity from the following relations describes demand and supply conditions in a given industry.

QD = 80000 –20000P (Demand)

QS = -20000 + 20000P (Supply)

Where Q is quantity and P is price in dollars.

Calculate the midpoint price elasticity of demand using the price of $5 and $7. The demand function is:

Q = 1,500 - 200P

Where Q is quantity demanded and P is price.

A new company estimates fixed costs for its product of $50,000 per year and average variable costs of:

AVC=$0.5+$0.0025Q,

Where AVC is average variable cost (in dollars) and Q is output.

Calculate total cost and average total cost for the projected first-year volume of 20,000 units.

Calculate profit from the following demand and total cost functions at output level of 160 units:

Q = 448 - 16P

TC = 1000 + 5 Q

Expert Solution

Rahul Sunny answered 2 years ago

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