Question
In: Economics
Suppose that Nokia has a monopoly in the market for 5g base stations. In order to...
Suppose that Nokia has a monopoly in the market for 5g base stations. In order to construct a network with Q base stations, it costs Nokia TC =8Q+50 and hence the marginal cost is MC=8.
(a) The demand for 5g base stations is Q=12−0.25P. Find the level of output that maximizes Nokia’s profits. What price is Nokia charging? What is the profit?
(b) What level of output would maximize total surplus in the 5g base station market? How much more surplus the market generates compared to the monopolistic market outcome?
(c) If the government provide Nokia a subsidy of S for every unit of 5g base station produced, which will decrease the marginal cost to MC=8-S, what quantity would Nokia choose as a function of S? How much more will Nokia produce when the subsidy S increases by one unit.
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
Suppose that Nokia has a monopoly in the market for 5g base stations. In order to...
Suppose that Nokia has a monopoly in the market for 5g base
stations. In order to construct a network with Q base stations, it
costs Nokia TC =8Q+50 and hence the marginal cost is MC=8.
(a) The demand for 5g base stations is Q=12−0.25P. Find the
level of output that maximizes Nokia’s profits. What price is Nokia
charging? What is the profit?
(b) What level of output would maximize total surplus in the 5g
base station market? How much more...
Suppose that Nokia has a monopoly in the market for 5g base stations. In order to...
Suppose that Nokia has a monopoly in the market for 5g base
stations. In order to construct a network with Q base stations, it
costs Nokia TC =8Q+50 and hence the marginal cost is MC=8.
(a) The demand for 5g base stations is Q=12−0.25P. Find the
level of output that maximizes Nokia’s profits. What price is Nokia
charging? What is the profit?
(b) What level of output would maximize total surplus in the 5g
base station market? How much more...
please answer all questions Suppose that Nokia has a monopoly in the market for 5g base...
please answer all questions
Suppose that Nokia has a monopoly in the market for 5g base
stations. In
order to construct a network with Q base stations, it costs
Nokia TC =8Q+50 and hence the
marginal cost is MC=8.
(a) (5 points) The demand for 5g base stations is Q=12−0.25P.
Find the level of output that
maximizes Nokia’s profits. What price is Nokia charging? What is
the profit?
(b) (5 points) What level of output would maximize total surplus
in...
Please answer all sections: Suppose that Nokia has a monopoly in the market for 5g base...
Please answer all sections:
Suppose that Nokia has a monopoly in the market for 5g base
stations. In
order to construct a network with Q base stations, it costs
Nokia TC =8Q+50 and hence the
marginal cost is MC=8.
(a) (5 points) The demand for 5g base stations is Q=12−0.25P.
Find the level of output that
maximizes Nokia’s profits. What price is Nokia charging? What is
the profit?
(b) (5 points) What level of output would maximize total surplus
in...
Suppose that a market could be either a monopoly or acompetitive market. Suppose that in either...
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monopoly. So the supply curve is Qs= -20+P and,
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in...
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