Explain how much extra surplus does the producer capture, Ask an Expert

Economics

1. suppose a profit-maximizing monopolist faces the demand curve P=60-2Q. The firm's total cost curve is TC=300+1/2Q2

a. if the firm charges a single price, what would that price be? How large will the profit be? How large will the producer surplus be?

b. Suppose the firm were able to act as a perfect first degree price-discriminating monopolist. How much will it produce? How large will the profit be?

c. How much extra surplus does the producer capture when it engages in first-degree price discrimination instead of charging a single price?

2. Consider a perfectly competitive industry in which there are 10 identical firms and 1000 identical buyers. Each buyer has the following demand function:
q=1-.005P
Each firm has the following short-run cost function:
STC(q)=1000+10q+q2
The associated marginal cost function is SMC(q)=10+2q

a. Derive the market demand function

b. What is one firm's supply function? Write the quantity supplied by the firm as a function of price.

c. What is the market supply function?

d. What are the short-run equilibrium price and quantity?

e. How much would each firm produce? How much is each firm's profit?

f. Is the industry in long-run equilibrium? If yes, why? If no, what would happen in the industry?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M9278055

Have any Question?Write your Review or question?

Related Questions in Business Economics

What statistic was calculated to determine differences

What statistic was calculated to determine differences between the intervention and control groups for the lumbar and femur neck BMDs? Were the groups significantly different for BMDs?

A study indicates that the weights of adults are normally

A study indicates that the weights of adults are normally distributed with a mean of 140 lbs and a standard deviation of 25 lbs. Find a value of weight x such that only 20% of adults weigh less than that. A. 136 B.190 ...

The distribution of seed weights for pumpkins is closely

The distribution of seed weights for pumpkins is closely approximated by a normal distribution. You know that 95% of the seeds weigh less than 0.68 grams and that 5% of the seeds weigh less than 0.36 grams. Suppose you s ...

Mathew and susan are both optimizing consumers in the

Mathew and Susan are both optimizing consumers in the markets for shirts and hats, where they pay $100 for a shirt and $50 for a hat. Matthew buys 4 shirts and 16 hats, while Susan buys 6 shirts and 12 hats. From this in ...

The tobacco industry is a prime example to consider when

The tobacco industry is a prime example to consider when talking about price elasticity of demand. While nicotine use can be addictive for many users, it is not addictive for the so-called "social smokers". What can we s ...

Assume that your fathers business has a total market value

Assume that your fathers business has a total market value of $300.4 billion and a marginal tax rate of 35%. If it permanently changes its leverage from no debt by taking on new debt in the amount of 13% of its current m ...

In the us 82 of police officers have graduated from a

In the U.S., 82% of police officers have graduated from a police academy. If 300 police officers are chosen at random, what is the probability that at least 75% have graduated from a police academy? Keep intermediate ste ...

The blood glucose levels of wistar rats measured 2 hours

The blood glucose levels of Wistar rats measured 2 hours after eating (Postprandial Blood Glucose - PBG) are approximately normally distributed with mean 5.65 mmol/L and standard deviation 1.63 mmol/L. If a Wistar rat is ...

The government is undertaking expansionary fiscal

The government is undertaking expansionary fiscal policy. Illustrate how this action affects: The AD-AS model. The Phillips curve model. The IS-LM model. How will this change impact on economic activity the price level t ...

A company is to hire two new employees they have prepared a

A company is to hire two new employees. They have prepared a final list of twelve candidates, all of whom are equally qualified. Of these twelve candidates, seven are women. If the company decides to select two persons r ...

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

Recent Questions

Ask Business Economics Expert