Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

Question - Suppose a monopolist can purchase Labor at a price w = 1 and can purchase Capital at a price r = 9.  The monopolist's production function is given by Q = L1/2K1/2. The demand facing the monopolist is given by P = 78 - 6Q.

a) Illustrate the above situation using a graph.  Your graph should include the Demand Curve, the Marginal Revenue curve, the Marginal Cost curve, and you should clearly identify the Monopoly Price and Quantity, and the Perfectly Competitive Price and Quantity.  Make sure your graph is drawn neatly and accurately, and is correctly labeled.

b) What is the value of the deadweight loss that results from this monopoly?

c) What value does the Lerner Index take when the firm is a monopolist?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M92383895
  • Price:- $25

Priced at Now at $25, Verified Solution

Have any Question?


Related Questions in Microeconomics

Question the questions asked is from business global1 list

Question: The questions asked is from Business Global 1. List and describe/explain international strategies for entering foreign markets. 2. Compare and contrast first-mover and late-mover advantages. The response must b ...

Question an auto repair shop is considering purchasing

Question: An auto repair shop is considering purchasing automated paint-spraying equipment. The company estimates that the equipment will last five years. Each year, it will save the company $4,000 in paint wasted in the ...

Question suppose you are the manager of a chain of computer

Question: Suppose you are the manager of a chain of computer stores. For obvious reasons you have been closely following developments in the computer industry, you have just learned that the government has passed a two-p ...

Question in spite of the greater emphasis on a planned

Question: In spite of the greater emphasis on a planned economy in France than in Germany, the growth rate in France has averaged more than 1% higher than Germany over the past five years, whereas during the previous fiv ...

Question despite airport precautions x hijacked an airplane

Question: Despite airport precautions, X hijacked an airplane in Chicago and forced the pilot, crew, and passengers to fly to New York. Upon reaching New York, X shot the pilot before giving up and surrendering to the Ne ...

Question an electric generator was purchased for 15000 use

Question: An electric generator was purchased for $15,000. Use the sum-of-years digits (SOYD) depreciation accounting method with a $2,000 salvage value and a 10-year depreciation life. Develop a depreciation schedule fo ...

Question you work for a marketing firm that has just landed

Question: You work for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: guppy gummies, frizzles, and cannies. All of these products have been on the mar ...

Question minimum wages and rent controls are implemented in

Question: Minimum wages and rent controls are implemented in an attempt to help those of modest means. Explain the costs and benefits of such price controls. Suggest alternatives that you believe would be more appropriat ...

Question johns project has a five year term a first cost no

Question: John's project has a five year term, a first cost, no salvage value, and annual savings of $20000. After doing present worth and annual worth calculations with a 17% interest rate, John noticed that the calcula ...

Question suppose the fed were required to conduct monetary

Question: Suppose the Fed were required to conduct monetary policy so as to hold the unemployment rate below 4%, the goal specified in the Humphrey-Hawkins Act. What implications would this have for the economy? The resp ...

  • 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

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved