The table below shows the total demand for cable TV subscriptions for a monopoly. Assume that...

The table below shows the total demand for cable TV subscriptions for a monopoly. Assume that the monopolist incurs an annual fixed cost of $100,000 and that the marginal cost of providing an additional subscription is always $100.

Quantity	Price (per year)
0	$400
2,000	$350
4,000	$300
6,000	$250
8,000	$200
10,000	$150
12,000	$100
14,000	$50
16,000	$0

What is the profit-maximizing level of quantity and price? What is the profit at this level of output? Explain your answers using the concept of marginal revenue and marginal cost.
The following table shows a game played between two players, A and B. The payoffs in the table are shown as (Payoff to A, Payoff to B).

		B
		Right	Left
A	Up	(2, 2)	(3, 3)
A	Down	(1, 1)	(4, 0)

Critically analyze the following (remember to justify your answers):

Is Up-Right a Nash equilibrium? (1 mark)
Is Up-Left a Nash equilibrium? (1 mark)
Is Down-Right a Nash equilibrium? (1 mark)
Is Down-Left a Nash equilibrium? (1 mark)

Expert Solution

Rahul Sunny answered 1 year ago

The information in the table below shows the total market demand for Good X. Assume the...

The information in the table below shows the total market demand for Good X. Assume the marginal cost of providing Good X is zero. Quantity Price 4 $ 40 5 $ 35 6 $ 30 7 $ 25 8 $ 20 9 $ 15 10 $ 10 Refer to the table above. What is the Nash Equilibrium market quantity produced in a duopoly market? 8 5 7 6 4

Consider the market for cable TV. (a) Assuming it’s a monopoly, draw the supply-and-demand diagram and...

Consider the market for cable TV. (a) Assuming it’s a monopoly, draw the supply-and-demand diagram and indicate a possible monopoly price. Using letters in your diagram, show CS, PS, and the DWL that results from the insufficient competition in this market. (b) What type of policy would you recommend to return this market to the efficient equilibrium? Briefly explain and illustrate in your diagram.

3. The table below shows Bob’s total utility from apples and oranges. Assume that Bob has...

3. The table below shows Bob’s total utility from apples and oranges. Assume that Bob has $160 to spend on apples and oranges each month (whole units). Oranges cost $16 each, and apples cost $40 each. Fill in the figures for marginal utility and marginal utility per dollar for both oranges and apples. Are these preferences consistent with the law of diminishing marginal utility? Explain briefly. Given the budget of $160, what quantity of apples and what quantity of oranges...

complete the mrp table for the "Button" The table below shows the net weekly demand of...

complete the mrp table for the "Button" The table below shows the net weekly demand of Audi Car model. The lead time to receive the door is 2 weeks. In week 0, there are 5 cars and 15 doors in inventory. It is expected to receive 30 reworked doors in week 10 Week 8 9 10 11 12 13 14 15 16 17 Net demand (car) 20 25 40 12 5 32 24 18 16 30 Suppose that driver door...

A sample of 250 apartment house shows that 154 house subscribes to cable TV. Construct a...

A sample of 250 apartment house shows that 154 house subscribes to cable TV. Construct a 90% confidence interval for the proportion of all apartment houses that subscribes to cable TV. Also, find the margin of error. Round your answers to 3 decimal places.

The table below shows the demand and supply of coats in Small Town. a. What is...

The table below shows the demand and supply of coats in Small Town. a. What is the equilibrium price of coats? b. Will a shortage or surplus occur? c. At what price will the most coats sold be sold? d. The mayor of SmallTown in order to "help the poor by making coats cheaper", imposes a price ceiling of $40. How many coats will be bought and sold? Will a surplus or shortage of coats occur? e. The mayor of...

The table below shows part of the cost structure (total fixed cost, total variable cost, and...

The table below shows part of the cost structure (total fixed cost, total variable cost, and total cost) for a typical producer of olive oil -- a perfectly competitive industry. Copy the table into Excel and use it to calculate average total cost and marginal cost for all quantities from 1 to 10. Use Excel (following the hints in QSet 2, #9) to produce a diagram of the firm’s average total cost and marginal cost curves. If the price of...

PART II: DEMAND AND SUPPLY GRAPHICAL (25 Marks) The table below shows the demand and supply...

PART II: DEMAND AND SUPPLY GRAPHICAL The table below shows the demand and supply for 1 bedroom apartments in Nanaimo. Price per Month ( $ ) Demand Supply Price per Month ( $ ) Demand Supply 400 5250 2250 600 4000 3500 440 5000 2500 640 3750 3750 480 4750 2750 680 3500 4000 520 4500 3000 720 3250 4250 560 4250 3250 760 3000 4500 Construct an accurate graphical model, on one graph, of price, demand, and supply. Illustrate...

The table below depicts the cost and demand structure a natural monopoly faces. Quantity Price ($...

The table below depicts the cost and demand structure a natural monopoly faces. Quantity Price ($ per unit) Long-Run Total Cost ( $ ) Total Revenue ($) Total Profit ($) Long-run Average Cost ($ per unit) Marginal Cost ($ per unit) Marginal Revenue ($ per unit) 0 50.00 0.00 - - - 1 47.50 40.00 40 47.50 2 45.00 81.00 40.5 90 3 42.50 118.50 39.50 127.5 4 40.00 160.00 40 160 5 37.50 197.50 39.50 187.70 6 35.00 245.40...

The table below shows the supply and demand schedules for sales of bags of chips. PRICE...

The table below shows the supply and demand schedules for sales of bags of chips. PRICE (dollars/bag) QUANTITY DEMANDED QUANTITY SUPPLIED (bags/week) $1.00 200 110 $1.25 175 130 $1.50 150 150 $1.75 125 170 $2.00 100 190 Question 1: What is the market equilibrium? Question 2: Describe the situation in the chip market if the price were $1.75 per bag. Question 3: If the price is $1.75/bag, explain how the market reaches equilibrium. Question 4: A bad year for potatoes...

Question