Using constant MC and linear demand, construct a specific graphical example in which a single price...

Using constant MC and linear demand, construct a specific graphical example in which a single price profit-maximizing monopolist makes zero economic profit in the SR. Graphically depict this case with marginal cost and average cost curves.

Expert Solution

Rahul Sunny answered 2 years ago

1) The absolute value of price elasticity of demand for a linear demand curve (constant slope)...

1) The absolute value of price elasticity of demand for a linear demand curve (constant slope) follows the pattern (moving from high prices to low prices along the demand curve) a. constant. b. increases. c. decreases. d. has no pattern (of changes). 2) Given a demand function P=20–0.2Q. The own-price elasticity at (Q=25, P=15) is a. -1. b. -2. c. -3. d. -4. 3) A market has only two consumers: A and B. Consumer A has a demand function given...

MC = $10/ton Price = $30/ton Quantity = 30 Million tons Find the linear demand function...

MC = $10/ton Price = $30/ton Quantity = 30 Million tons Find the linear demand function and profit

Using a linear demand function and constant marginal cost function as illustration, explain the Cournot model...

Using a linear demand function and constant marginal cost function as illustration, explain the Cournot model with product differentiation. Derive the sufficient condition that all firms have no incentive to cheat.

1.Using a linear demand function and constant marginal cost function as illustration, explain the Cournot model...

1.Using a linear demand function and constant marginal cost function as illustration, explain the Cournot model with product differentiation. Derive the sufficient condition that all firms have no incentive to cheat. 2.In the context of a static duopoly model explain why the joint profit maximizing solution is unstable. Discuss some factors that may engender collusion. 3.Using a quadratic net birth function, and linear total cost and catch functions as illustration, derive the supply function of fishery. Why this supply function...

Solve the following linear program using both the graphical and the simplex methods: Max 2X1 +...

Solve the following linear program using both the graphical and the simplex methods: Max 2X1 + 8 X2 s.t. 3X1 + 9X2 <= 15 2X1 + X2 >= 12 X1, X2 >= 0 Show graphically how the simplex method moves from one basic feasible solution to another. Find the coordinates of all extreme points of the feasible region. From the graphic I can see there's no solution , but how to prove it through simplex method? Thank you!

A monopolist sells in two states and has constant marginal cost MC =10. Demand in market...

A monopolist sells in two states and has constant marginal cost MC =10. Demand in market 1 is Q1 = 50- p1. Market 2 demand is Q2 = 90-1.5p2. a) If the monopolist is unable to discriminate price, what would be the profit maximizing price and quantity? b) If the monopolist can discriminate price between two states, what would the price and quantity in each market? c) Calculate the demand elasticity of each market and explain the price strategy.

Solve the following linear program using the graphical solution procedure. Max 5A + 5B s.t 1A...

Solve the following linear program using the graphical solution procedure. Max 5A + 5B s.t 1A <100 1B<80 2A+4B<400 A,B>0

2. Solve the following linear program using the graphical solution procedure: Max 8A + 5B s.t....

2. Solve the following linear program using the graphical solution procedure: Max 8A + 5B s.t. i. 1A ≤ 120 ii. 1B ≤ 150 iii. 2A + 4B ≤ 700 iv. A, B ≥ 0

Run a linear regression using Excel’s Data Analysis regression tool. Construct the linear regression equation and...

Run a linear regression using Excel’s Data Analysis regression tool. Construct the linear regression equation and determine the predicted total sales value if the number of promotions is 6. Is there a significant relationship? Clearly explain your reasoning using the regression results. Number of Promotions Total Sales 3 2554 2 1746 11 2755 14 1935 15 2461 4 2727 5 2231 14 2791 12 2557 4 1897 2 2022 7 2673 11 2947 11 1573 14 2980

Construct an example and solve with Supply and Demand analysis one of each of the following....

Construct an example and solve with Supply and Demand analysis one of each of the following. Name and graph the market of analysis and contingent markets, if any. 1. Consumers' expectations change. 2. The price of an input to production changes. 3. There is a change in production technology. 4. The number of sellers changes. 5. Sellers' expectations change.

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