do fast. The table below shows the monthly demand schedule for a good in a duopoly market. The two producers in this market each face$4700 of fixed costs per month. There are no marginal costs.Quantity0Price ($)TR ($)MR ($)400-200357,000354003012,000256002515,000158002016,00051,0001515,000-51,2001012,000-151,40057,000-251,60000-35Instructions: Enter your answers to the nearest whole number.a. If they evenly split the quantity a monopolist would produce, the monthly profit for each duopolist isb. If duopolist A decides to increase production by 200 units, the monthly profit for duopolist A is $and for duopolist B $

Ans. ) Given in the question, there is a table that shows the monthly demand schedule for a good in…

Answered: The table below shows the monthly…

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter23: Profit Maximization

Section: Chapter Questions

Problem 9E

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Whether in the case of clothes and cars or in the case of universities, producers spend a lot of money establishing their "brand names" because: Group of answer choices Brand names are established by driving out the competition, after which these companies charge monopoly prices. Government legislation raises the prices of brand named items with price controls, and people have no choice but to pay the higher price for brand name products. There are legal requirements for companies with brand names to spend a percentage of their budget on advertising. Brand names carry a reputation of better quality, and consumers will pay a higher price for brand names.
ssume there is no price discrimination: Matthew, Rachel, Janice, and Mandy own the only ice company in town (they have a monopoly on the ice market). Matthew wants to sell as much ice as possible without losing money. Rachel wants the ice company to bring in as much revenue as possible. Janice wants to maximize total surplus and Many wants to make the largest possible profit. Use ONE clearly-labelled graph of the ice company’s marginal revenue, demand, and cost curves to show the price and quantity (i.e., ice) each person desires. Provide explanation.
Plotted through point E are two demand curves; one is relatively elastic, and the other is relatively inelastic. Each demand curve also has its own marginal revenue (MR) curve. Merge these curves into a kinked demand curve by moving the curves' endpoints to remove the unwanted sections of the curves. Then, adjust the marginal revenue curves to properly accompany the new kinked demand curve. Price ($) 500 450 400 350 300 250 200 150 100 50 0 0 2 4 6 E MR 2 8 10 Quantity 12 14 Demand 1 16 MR 1 Demand 2 18 80 Question 20
The table shows the town of Driveaway's demand schedule for gasoline. Assume the town's gasoline seller(s) incurs a cost of $2 for each gallon sold, with no fixed cost. Quantity Price Total Revenue (Gallons) (Dollars per gallon) (Dollars) 8 50 7 350 100 600 150 750 200 4 800 250 3 750 If there are exactly five sellers of gasoline in Driveaway and if they collude, then which of the following outcomes would be most profitable for the sellers? Each seller will sell 30 gallons and charge a price of $5. Each seller will sell 50 gallons and charge a price of $3. Each seller will sell 30 gallons and charge a price of $4. Each seller will sell 40 gallons and charge a price of $4. O O
MelCo’s Xamoff The global pharmaceuticals giant, MelCo, has had great success with Xamoff, and over-thecounter medicine that reduces exam-related anxiety. A patent currently protects Xamoff from competition, although rumors persist that similar products are in development. Two years ago, MelCo sold 25 million units for a price of $10 for a package of ten. Last year it raised the price to $11, and sales fell to 22 million units. Finally, a financial analyst estimates the cost of production at $2 per package. (a) Estimate the elasticity of demand for this product at $10. Is this price too high or too low? (b) Estimate the elasticity of demand for this product at $11. Is this price too high or too low? (c) Based on your answers to (a) and (b), what can we say about MelCo’s profit-maximizing price?
ASAP
A publisher faces the following demand schedule for the next novel from one of its popular authors:Price Quantity Demanded100 090 100,00080 200,00070 300,00060 400,00050 500,00040 600,000 530 700,00020 800,00010 900,0000 1,000,000The author is paid $2 million to write the book, and the marginal cost of publishing the book is a constant $30 per book.d. In your graph, shade in the deadweight loss. Explain in words what this means. e. If the author was paid $3 million instead of $2 million to write the book, how would this affectthe publisher’s decision regarding the price to charge? Explain. f. Suppose the publisher was not profit-maximizing but was concerned with maximizing economicefficiency. What price would it charge for the book? How much profit would it make at thisprice? (
Most smartphones in the United States use Apple's IOS or Google's Android operating system. What market structure applies to the market for smartphone operating systems? Why?
Question 10 On the basis of the information below for a single-price monopolist, what would be the profit maximizing output? Quantity 0 1 2 3 4 5 (A) 5 units (B) 4 units C) 3 units (D) 2 units Price $650 $575 $500 $425 $350 $275 Total Cost $400 $525 $705 $980 $1330 $1830
A large share of the world supply of diamonds comes from Russia and South Africa. Suppose that the marginal cost of mining diamonds is constant at $1,000 per diamond, and the demand for diamonds is described by the following schedule: Price ($) Quantity (diamonds) 8000 5000 7000 6000 6000 7000 5000 8000 4000 9000 3000 10000 2000 11000 1000 12000 a) If there were many suppliers of diamonds, what would be the price and quantity? b) If there were only one supplier of diamonds, what would be the price and quantity? c) If Russia and South Africa formed a cartel, what would be the price and quantity? If the countries split the market evenly, what would be South Africa’s production and profit? What would happen to South Africa’s profit if it increased its production by 1,000 while Russia stuck to the cartel agreement? d) Use your answers to part (c) to explain why cartel agreements are often not successful.
Paulina sells beef in a competitive market where the price is $6 per pound. Her total revenue and total costs are given in the table below. Quantity of beef (lb.) 0 1 2 3 4 Total revenue ($) Total cost ($) 0 4 (A) 1 pound (B) 2 pounds (C) 3 pounds (D) 4 pounds 6 12 18 24 6 10 15 21 What is the profit-maximizing (or loss minimizing) quantity? Profit ($) Marginal revenue ($) Marginal cost ($) Marginal profit ($)
In which type of market, monopolistic or competitive market, is the equilibrium market price lower? Why?

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