Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Business Economics Expert

Suppose which in a city there are 100 identical self-service gasoline stations selling the same type

Suppose which in a city there are 100 identical self-service gasoline stations selling the same type of gasoline.

The total daily market demand function for gasoline in the market is QD=60,000-25,000P, where P is expressed in dollars per gallon.
The daily market supply curve is QS=25,000P for P$0.60.

1) How many gasoline stations would the monopolist operate?

2) Can we say which the monopoly leads to a less efficient use of resources than perfect competition? Illustrate what is the amount of the deadweight loss, if any?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M917378

Have any Question?


Related Questions in Business Economics

When a country is closed qconsumed qproduced when a country

When a country is closed, Qconsumed= Qproduced. When a country opens to trade, this condition is not necessarily true; what condition must hold?

Why would the australian government debt be consider not

Why would the Australian government debt be consider not too high?

A brewery pulls 905 bottles of beer to sample them for

A brewery pulls 905 bottles of beer to sample them for quality control. In the past there has been a 0.12 probability that a bottle of beer is defective. Assuming this trend continues, what is the probability that fewer ...

Explain how the application of the pdca cycle can support a

Explain how the application of the PDCA cycle can support a competitive strategy of low cost leadership.

When we look at the ease to enter the different market

When we look at the ease to enter the different market structure, there is no doubt that 'monopoly' is the hardest. Why? -- There is only ONE firm that has established 'economies of scale' with the production of their go ...

How does the learning environment effect the success of

How does the learning environment effect the success of students? Provide examples.

Suppose that you generate a random number between 0 and 1

Suppose that you generate a random number between 0 and 1. (So all numbers are equally likely to come up.) a. Draw a probability distribution function for this situation. Label the axes so it is very clear! b. What is th ...

How does the learning environment effect the success of

How does the learning environment effect the success of students? Provide examples.

Are there manufacturers and retailers who have taken steps

Are there manufacturers and retailers who have taken steps to reduce their pollution impact, both air quality and industrial pollution, while maintaining a viable place in the market?

What is the role of local government leadership in assuring

What is the role of local government leadership in assuring that departments and divisions work together to achieve municipal goals and objectives?

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As