ECON-1010-D1/D2-Introduction to Microeconomics
Looking for ECON-1010-D1/D2-Introduction to Microeconomics test answers and solutions? Browse our comprehensive collection of verified answers for ECON-1010-D1/D2-Introduction to Microeconomics at moodle.uleth.ca.
Get instant access to accurate answers and detailed explanations for your course questions. Our community-driven platform helps students succeed!
The figure above shows demand and marginal revenue for a single price monopoly.
At any price above $ demand is elastic.
Assume production costs are constant and equal to $9.00 (i.e., AC = MC = $9).
Output is units per day at a price of $ per unit.
Profit is $ .
Consumer surplus is $ .
If this market was perfectly competitive , output would exceed the single-price monopoly output by
If this is a perfectly price discriminating monopoly at a constant cost equal to $4.50 - the lowest price charged per unit is $ . - the number of units sold is . - total revenue is $ .
MATCHING DEFINITION
Making a product slightly
different from the product of a competing firm.
MATCHING DEFINITION
The amount by which the
firm’s price exceeds its marginal cost.
Use the figure to answer to answer the following 5 questions.
The figure above shows the demand and cost curves facing a price-setting firm.
The profit-maximizing (or loss-minimizing) level of output is .
In profit-maximizing (or loss-minimizing) equilibrium, the price-setting firm earns$ in total revenue, which is than the maximum possible total revenue of $ .
In short run the maximum profit the firm can earn is $ .
.
2) At this level of output the firm earns a profit of $.
3) At the profit maximizing level of output the last unit produced and sold adds $ to revenue and $to cost.
4) One more unit of output beyond the profit-maximizing level would add $ to revenue and $ to cost, thereby profit by $ ..
2) If the firm earns profits of $250 by producing 40 units of output, the firm has Total Costs of .Use the figure to answer to answer the following 8 questions.
The figure above shows demand and marginal revenue for a single price monopoly.
At any price above $ demand is elastic.
Assume production costs are constant and equal to $450.00 (i.e., AC = MC = $450).
1) Output is units per day at a price of $ per unit.
2) Profit is $ .
3) Consumer surplus is $ .
4) If this market was perfectly competitive, output would exceed the single-price monopoly output by units.
Assume this is a perfectly price discriminating monopoly at a constant cost equal to $225.00 (i.e., AC = MC = $225).
5) The lowest price charged per unit is $ .
6) Output is .
7) Profit is $ .
8) Consumer surplus is $ .
A firm with market power faces the following estimated demand, marginal cost and total cost functions:
Qd = 95 000 – 200P + 0.7M – 6 000PR
MC = 40 + 0.09Q
TVC = 29Q
TFC = 160 000
where Qd is quantity demanded, P is price, M is income, and PR is the price of a related good.
The firm expects income to be $210 000 and PR to be $11.
The Marginal Revenue Function is MR = – Q
The profit-maximizing choice of output is units.
The profit-maximizing price is $ .
The firm's profit is $ .
Please answer all parts of the question.The firm should (select all that applies):
Want instant access to all verified answers on moodle.uleth.ca?
Get Unlimited Answers To Exam Questions - Install Crowdly Extension Now!