Suppose icecream company has gained exclusive rights to, Ask an Expert

Economics

Suppose Icecream company has gained exclusive rights to sell Icecream in State College. The demand for Icecream is Q = 3000 − 60P. The total cost of producing Icecream is C(Q) = 6Q for Q orders of the drug.

A. What is the marginal cost function for Icecream?

B. Write down the monopolist’s maximization problem, assume the monopolist chooses how many Icrecream to produce.

C. How many units should ICECREAM in State College?

D. What is the price at this level of output?

E. Is this outcome efficient? If so, why? If not, what is the efficient level of output?

F. What is the Lerner Index for this product? What about the HHI?

G. Suppose the demand for Icecream was instead given by Qd = 3000 − 3P. How would the Lerner index change? The HHI? Would this lead to a more or less efficient outcome? Explain.

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91954688

Have any Question?Write your Review or question?

Related Questions in Business Economics

From a random sample of 68 businesses it is found that the

From a random sample of 68 businesses, it is found that the mean time that employees spend on personal issues each week is 5.8 hours with a standard deviation of 0.35 hours. What is the 95% confidence interval for the am ...

Number of cars average trvel time between a and b using

Number of cars Average trvel time between A and B using route 1 1 10 2 10 3 10 4 11 5 12 6 14 7 18 8 24 Alternative route 2: average travel time is 18 minutes (no matter how many cars are using it) How many cars will tak ...

How do bribery and corruption influence the economy

How do bribery and corruption influence the economy negatively? Answer and explain three major impacts.

In 2010 toyota recalled millions of automobiles to fix a

In 2010, Toyota recalled millions of automobiles to fix a potentially hazardous problem known as sudden acceleration. Writing in the Wall Street Journal, James Stewart gave investors the following advice: "Toyota shares ...

What effect does the teacher have on creating a learning

What effect does the teacher have on creating a learning environment with little to no behavior problems?

Consider a perfectly competitive market with market supply

Consider a perfectly competitive market with market supply QS= -2+ P and market demand QD= 40 -P/2. Suppose the government imposes a tax of $6 per unit on this market. How much tax revenue is collected? a.$0 b.$48 c.$96 ...

1 explain why fukayama thinks we are at the end of history

1. Explain why Fukayama thinks we are at the "end of history". How do you respond to his contention? 2. Explain what information a Lorenz curve gives you. How is this information summarized by a Gini coefficient. 3. Expl ...

Determine the minimum sample size required when you want to

Determine the minimum sample size required when you want to be 98% confident that the sample mean is within two units of the population mean. Assume a standard deviation of 7.55 in a normally distributed population.

Uni-trax publishers allows its sales team to buy and sell

Uni-Trax Publishers allows its sales team to buy and sell shares that pay out $1 only if the sales in the future fall within a certain range. Suppose that, currently, shares for sales between 1,000 and 2,000 textbooks ar ...

Would it ever be rational for a firm to retain an employee

Would it ever be rational for a firm to retain an employee whose current marginal revenue product is less than her current wage? Explain.

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