1)     If a monopolist’s price as a function of quantity can be expressed as P= 100 – Q, and the firms’ cost curve is 10 +5Q, what is the profit maximizing solution? Â
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2)     A monopoly’s demand function is P = 120 – Q,; TR= 120Q – Q2 and; MR = 120 – 2Q . If MC is constant at 10 what would be the deadweight loss if the firm charges its profit maximizing price
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3)     Bowen is a manufacturer of golf carts in Minneapolis servicing Minnesota and several nearby states.  Over the past several years, a number of other golf cart companies have established operations in Bowen’s market area, putting severe pressure on prices. Accordingly, Bowen is contemplating construction of a new production facility capable of producing up to 4000 golf carts/year.  Engineering cost estimates for the new production facility indicate that
             TC = $4200 + 980Q +.003Q2  and
                    MC = 980 + .006Q
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A)Â Â Â Â Â Calculate the minimum efficient scale of production for each manufacturer in this industry.
B)     If market demand in Bowen’s market area of operations is for 8000 carts/year,and if the market is competitive,  how many efficiently sized competitors are likely to emerge?
Answers
Status NEW
Posted 05 Jun 2017 06:06 AM
My Price 8.00
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