--%>
Assignment Help - homework help

Multimarket Monopoly

A monopolist operates in two separated markets. The inverse demand functions ofthose markets are given by      and      where   arethe quantities supplied to these markets, respectively. The total cost function facedby the monopolist is    . In addition, there is a sales cost of £c perunit sold in market 1. There is no such additional sales cost in market 2.a. Solve for the optimal quantities   in terms of c. What is theneeded condition for the firm to serve both the markets in equilibrium?b. What effects does an increase in c have on the (i) profits in each marketand (ii) overall consumer surplus? Provide both mathematical and intuitiveexplanations of your result.c. Suppose the quantities are fixed at the levels derived at (b), but the firm isnow allowed to charge two part tariffs in both markets. What would be theoptimal unit price (not the fixed fee) in each market? 

   Related Questions in Microeconomics

  • Q : Define regressive in taxes as

    Line T2 depicts as in below graph a tax system which is: (i) progressive. (ii) recessive. (iii) proportional. (iv) biased. (v) regressive.

    Q : Law of Income Distribution by Pareto

    The theorist who asserted as, “When you redistributed the world’s income and wealth equally across the whole population, eighty percent of this would be back within the hands of the population’s top 20% in twenty years,” which

    		•
  • Q : Goods trading problem Choose the right

    Choose the right answer from following. In recent years the United States has: A) exported more services abroad than it has imported. B) had a small goods trade surplus with Japan. C) had a large goods trade surplus with the rest of the world. D) fallen to third behin

    		•
  • Q : Labor Force Participation Rates The

    The percentage of a specific population who is either unemployed or employed or is termed as the: (i) Labor force participation rate. (ii) Work-force proportion. (iii) Income-leisure loss curve. (iv) Substitution effect dominance rate. (v) Labor supply.

  • Q : Transaction Costs and the Survival of

    Can someone help me in finding out the right answer from the given options. The firms can be successful and survive in long run merely when they consistently: (1) Produce positive economic gains. (2) Comply completely with federal regulations. (3) Ignore managerial sl

    		•
  • Q : Human Capital-Specific Training Can

    Can someone please help me in finding out the accurate answer from the following question. The costs of investing human capital are most probable to be borne by the employer if the human capital is as: (1) General. (2) Marginal. (3) Generic. (4) Precise. (5) Specific.

    		•
  • Q : Generates price and a quantity

    All prospective suppliers [sellers] would be in equilibrium when this market for teleporter buttons created a price and a quantity consistent along with: (1) eliminating the shortage Q1-Q3 existing at P3. (2) any point along the demand

    		•
  • Q : Effect of total revenue on economic loss

    The economic loss occurs whenever total revenue: (i) Is equivalent to the total costs. (ii) Fails to cover the opportunity costs. (iii) Surpasses opportunity costs. (iv) Surpasses the explicit costs. Can someone please help me in f

    		•
  • Q : Total economic of profit or loss at

    When the wholesale price P = $10 per bushel of peaches, it purely competitive peach orchard maximizes profit through producing ___ bushel of peaches at a total economic as profit or loss of $___. (i) zero; loss; -$4,000. (ii) 2000; lo

    		•
  • Q : Best statement of association between

    Which of the given is the best statement of the association between macroeconomics and microeconomics: (w) Macroeconomics and microeconomics deal along with totally independent types of problems. (x) A clear line splits microeconomic questions from ma

    		•