--%>
Assignment Help - homework help

Maximizes profit to ignore variable costs

Monsieur Cournot has a monopoly on an artesian well from that flows tasty spring water along with medicinal properties. To ignore variable costs, he is adamants that customers bring their own pails and fill them individually. Unluckily, Cournot cannot price discriminate since his customers all deal along with each other regularly. When Cournot maximizes his profit in that case: (1) he would sell 6,000 liters per period. (2) he would charge six Euros [€6 ] per liter. (3) his producer surplus would be 36,000 Euros. (4) buyers would enjoy a consumer surplus approximately valued at 18,000 Euros. (5) All of the above.

144_Elasticity and Total Revenue.png

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

   Related Questions in Microeconomics

  • Q : Define Yield to Maturity Describe what

    Describe what do you mean by the term Yield to Maturity?

    		•
  • Q : Components of capital account Elucidate

    Elucidate the components of capital account? Answer: It records are international transactions which occupy a resident of the domestic country changing his assets wi

    		•
  • Q : Horizontally summing the short-run

    For a competitive industry the short-run supply curve is derived through summing the short-run supply curves of all firms within the industry: (w) vertically. (x) horizontally. (y) diagonally. (z) and computing their arithmetic average.

  • Q : Making investment possible in an

    The group which ultimately makes investment in an economy possible is: (1) business firms. (2) households which consume less than their disposable incomes. (3) banks. (4) savings and loan associations. (5) financial tycoons.

    Q : Monopolistic competition firm in

    firm in monopolistic competition maximizes its profit by producing where its price is equal to its marginal cost." Is this statement correct or incorrect? Explain.

    		•
  • Q : Laws and regulations for competitive

    Government regulation intends at certain potentially competitive prices or transactions frequently induce private adjustments through firms and individual therefore unexpected results comprise: (w) increased rates of growth of tax revenues. (x) rapid

    		•
  • Q : State excess demand or inflationary gap

    State excess demand or inflationary gap: Excess demand takes place whenever AD is bigger than AS at the level of full employment equilibrium.

    		•
  • Q : Efficiency and Income Distribution Even

    Even though property rights are fully given and cost-less enforced and transaction costs (i.e., information costs, contracting costs, and mobility costs) are nonexistent, in that case equilibria in all markets in a whole economy may a

    		•
  • Q : Aggregate effective demand Why,

    Why, according to Keynes, is investment the key economic variable? Why does he think that the volatility of investment spending is likely to cause a problem of aggregate effective demand? Why does he think that this problem can only be solved by government interventio

    		•
  • Q : Problem on buyers and sellers

    The supply and demand are affected by the time in sense that the longer the time interval considered, the: (1) Less sensitive sellers and buyers are to price changes. (2) Much sensitive sellers and buyers are to price changes. (3) Bigger is supply and

    		•