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you will see why we never consider a supply curve for a monopolist- in the way that is done in perfect competition. Find the profit maximizing output and price.
Compare her total revenue with the revenue obtained under profit maximization. How much profit will she make when maximizing total revenue?
Develop a diagram that illustrates this market. Compute the profit-maximizing price and output combination.
Compute the break-even price for each firm. Explain why both of these firms cannot continue to produce in the long run in a perfectly competitive market.
What price will the monopolist charge for his output? How many units of labour will be employed?
Suppose the interest rate is 5%, for how many years would you hold the wine if there is no storage cost?
Draw a diagram illustrating the supply, demand and equilibrium. Solve the supply and demand equations for the equilibrium wage, W.
Illustrate in the diagram the areas defining transfer earnings and rent. Compute the transfer earnings and rent components of the total wage bill.
But once employed, each worker actually earns the same wage. Determine the optimal number of workers to be employed.
Consider the outputs you have obtained in the preceding question. Compute the profit levels under each of the three market structures.
What will be the total output produced in the Cournot duopoly game? If this market is supplied by a monopolist what is the profit maximizing output?
Compute the total output produced by both firms. Comparing their combined output with the output when the MC of each firm is $6, explain why the totals differ.
Plot the reaction functions to scale on a graph. Solve the two reaction functions for the equilibrium output produced by each.
Estimate the total revenue to be obtained from the component covering a price per unit of the good supplied, and the component covering fixed cost.
Compute the value of the deadweight loss associated with having an unregulated monopoly relative to having a regulated monopoly.
Graph this cost and demand structure. Calculate the efficient output and the monopoly output for the industry.
Calculate the total value to the consumers of the amount supplied at this efficient output level.
Derive the total demand for this public good by summing the demands vertically, and write down a resulting equation for this demand curve.
Can you find some value for interest rate that will change her decision? If interest rate is 10% should she go to university or enter job market immediately?
Illustrate on a diagram the supply and demand functions for each type of labour, and the equilibrium for each type of worker.
Illustrate the long run and short run on the same diagram. What is the numerical value of the premium in the long run after the increase in demand?
Suppose that instead of a monopolist in the previous question the market was perfectly competitive. How much output would be produced and sold?
Draw Canada's consumption possibility frontier on the assumption that it can trade with the United States at the United States rate of transformation.
Illustrate the market equilibrium on a diagram, and compute the amounts supplied by domestic and foreign suppliers.
Illustrate by how much the intercept on the gasoline axis changes in response to a doubling of the price of gasoline.