Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Macroeconomics Expert

problem 1: A firm has segmented its market into the following demand functions:

P1 = 500 – 50Q, P2 = 500 – 20Q with a cost function: MC = AC = 20 

a) Determine the profit maximizing price and quantity and corresponding economic profits if the firm charges all customers the same price.

b) Determine the profit maximizing prices and quantities and corresponding economic profits if it practices third-degree price discrimination.

c) What are the conditions necessary for price discrimination to succeed?

problem 2: A firm has a demand function P = 200 – 5Q and cost function: AC = MC = 10 and a potential entrant has a cost function: AC = MC = 20.

a) Determine the optimal price, quantity and economic profit for the firm in the short run.

b) If the firm wants to preclude all entry into the market what price, quantity and profit will it choose?

c) What price, quantity, and corresponding profit occur if this a purely competitive market?

d) Assuming the demand function is identical for all buyers, determine the two-part tariff that maximizes profit for the firm.

e) Determine the optimal price, quantity and economic profit for the firm if it is a pure  monopolist.

problem 3: If a firm targets a 25 % rate of return on sales, and has unit costs of production of $100, what price should it charge if it uses cost-plus pricing? If the firm has a demand function P = 10000 – 20Q is the cost-plus price the profit-maximizing price? If not, determine the profit-maximizing price, quantity and corresponding profit. Is the target rate of return the profit-maximizing r.o.r.? why or why not? What important economic considerations, does cost-plus pricing ignore?

problem 4: Use the following production function and budget constraint to answer the problems below.

Q = L + K                          

1000 = 2L + 4K

a) Determine the returns to scale property of the production function.
b) Determine the returns property to each factor.
c) Determine the optimal quantities of labor and capital
d) Determine the maximum quantity that can be produced.
e) Determine the production relationship between labor and capital.

problem 6: Discuss a typical firm’s preferred market structure and pricing policy for maximizing its economic profit potential. 

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M91956

Have any Question? 


Related Questions in Macroeconomics

Discussion on designing climate changeiwhy do the authors

Discussion on Designing Climate Change I. Why do the author's believe that climate change is an "enormously complex problem?" A. What horizons do they want to study policy for in terms of "GHG" control? What two approach ...

East malvidas is a small island country with big economic

East Malvidas is a small island country with big economic problems. Currently the unemployment rate is 16 percent and the price level is increasing at a rate of 20 percent a year. Gross Domestic Product fell again this y ...

What is the formula used to calculate the value of a

What is the formula used to calculate the value of a recently deceased person using the human capital approach, with a discount rate of 5%?

Bnks are holding nearly 25 trillion in excess reserves

Banks are holding nearly $2.5 trillion in excess reserves. Explain why increased business uncertainty about future sales coupled with asymmetric information could explain why bankers are holding their reserves rather tha ...

Economics for international affairs assignmentplease answer

Economics for International Affairs Assignment Please answer five out of six questions. Q1. The Federal Reserve used an expansive monetary policy program called quantitative easing to deal with the financial crisis and p ...

Establishing a proprietary standard as the industry

Establishing a proprietary standard as the industry standard may require a company to win a format war against a competing and incompatible standard. Strategies for doing this include producing complementary products, le ...

Economic choice and economic decision makingeconomic choice

Economic Choice And Economic Decision Making Economic Choice and Economic Decision Making Consider your last vehicle purchase and the decision making process you engaged in while deciding what vehicle to purchase or if a ...

The affordable care act is expected to help increase access

The Affordable Care Act is expected to help increase access to health care. Health insurance exchanges will be an important part of that. Most people get health insurance through their employers. But people without this ...

In the short run when us firms moved thrit it and data

In the short run when US firms moved thrit IT and data functions to India India's aggregate supply? When the money wage rate rose India's aggregate supply? When the price level in India increased Indias aggregate supply?

The danish central bank is committed to maintaining an

The Danish central bank is committed to maintaining an exchange rate of 7.46 krone per euro exchange rate with a band of 2.25% on either side of this central rate. Under current conditions in the foreign exchange market, ...

  • 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

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen