function is Q = 200 - P/2, while the total cost function is C = 285 + 20Q. 4a. Calculate the balance of P, Q, and Profit. 4b. Calculate the market power (Lerner Index) of the company. Thank you for the
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4a. Calculate the balance of P, Q, and Profit.
4b. Calculate the market power (Lerner Index) of the company.
Thank you for the help Bartleby!
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- (Market Power) In a monopoly market, the demand function is Q = 200 - P/3, while the total cost function is C = 285 + 20Q. 4c. Calculate the balance of P, Q, and Profit. 4d. Calculate the market power (Lerner Index) of the company. Thank you for the help Bartleby!The names of the compagny is H20 A compagny of water production and distribution company is in a monopoly situation. it's total cost function is given by: CT (q) = q² + 10q where q represents the quantities produced in millions of m ^ 3 of water. She is faced with the following request p = 50-4q with p the price in cents. Please answer the following question a) Calculate the price, quantity and monopoly profit of H20 b) Represent the demand curves of average cost, marginal cost and marginal revenue of H20 c) H20 learns from the news that a potential entrant wants to enter the market by selling 5 units at a unit cost of 20. Determine the price level below which H20 can set a limit price Then check whether the monopoly price calculated in question 1 can be considered a limited price d) Would H20 remain profitable if the entrant were to enter the market anyway ? (for this you have to calculate the market price that will rise as a result of the entry of the competitor) e) The entrant…Assume that Gas & Minerals is the only copper mining firm in Chile. The national demand for copper in thousands of tonnes per month is: q^d(p) = 15 - pThe total costs in millions of dollars are: c(q) = 5q(a) What would be the profit-maximising level of production for this firm? Determine the monopoly price and quantify the profits. Graph the demand, marginal revenue and marginal cost, identifying their values along with determining the social loss generated and identifying it in the graph above. Assume now that due to a bad internal restructuring, the operations manager was fired and a professional with little mining experience was hired. The new manager does not know environmental protocol and mining waste (tailings) has gotten out of control and has been dumped into a river. This generated a negative externality on copper production. The estimated damage is US$5 million per 1,000 tonnes.(b) Obtain the social marginal cost of this mining activity.(c) What level of production will…
- You are the manager of a monopoly, and your analysts have estimated your demand and cost functionsas P = 300 − 3Q and C(Q) = 2, 000 + 2Q2, respectively.(a) What price-quantity combination maximizes your firm’s profits?(b) Calculate the maximum profits.(c) Is demand elastic, inelastic, or unit elastic at the profit maximizing price-quantity combination?(d) What price-quantity combination maximizes revenue?(e) Calculate the maximum revenues.(f) Is demand elastic, inelastic, or unit elastic at the revenue maximizing price-quantity combination?CHP is a monopoly manufactorer who faces tbge following demand curve for its product in two different country: United States ( US) and New Zealand (NZ). US = Q(us) = 200 - P(us) and new zealand: Q(nz) = 150 - 1/2 P(nz). in which Q denotes quantity and p denotes prices. the firm also faces cost function of c(Q) = 0.25 (Qus + Qnz)^2. Find the prices, pUS and pNZ, which maximise CHP profits, assuming no capacity constraints.Company XYZ has a monopoly in its market for one of its' products and it serves 3 regional markets with regional demand functions given by. • Market 1: Q1 = 9 – (0.05) P1 • Market 2: Q2 = 10 – (0.1) P2 • Market 3: Q3 = 16 – (0.2) P3 The firm must make more than 10 units: Q > 10. The firm's cost function is C=490-50Q+2.5 Q2. The marginal cost is the same across all markets. Use Excel to set up this problem and: a) Identify the profit-maximizing output values for each market. b) Identify the surplus for each market and profit for the entire market. c) The output, price, and profit if the firm were not to differentiate across the markets? -
- Natural-ExP is a unique company that is dedicated to making day trips to the Nevado de Toluca. The service includes transportation, food and guide service. Being the number of tickets sold, if the cost function of serving a new customer is Cmg = 20q, the marginal revenue function Img = 600−40q and the demand is q = (600 − p) /20. Under this scenario, what is the price of the excursion. $400 $600 $300 $100A risk-neutral monopoly must set output before it knows the market price. There is a 50 percent chance thefirm's demand curve will be P = 20 − Q and a 50 percent chance it will be P = 40 − Q. The marginal cost of thefirm is MC = Q. What is the expression for the expected marginal revenue function? 7) _______A) E(MR) = 50 − 2Q B) E(MR) = 40 − 2QC) E(MR) = 20 − 2Q D) E(MR) = 30 − 2QA compagny WasserProduct, a water production and distribution company is in a monopoly situation. it's total cost function is given by: CT (q) = q² + 10q where q represents the quantities produced in millions of m ^ 3 of water. She is faced with the following request p = 50-4q with p the price in cents. 1) Calculate the price, quantity and monopoly profit of WasserProduct 2) Represent graphically the demand curves of average cost, marginal cost and marginal revenue of WasserProduct 3) WasserProduct learns from the news that a potential entrant wants to enter the market by selling 5 units at a unit cost of 20. Determine the price level below which WasserProduct can set a limit price (it's possible that i need to use the inequality PL < Ce + |a|Qe) Then check whether the monopoly price calculated in question 1 can be considered a limited price 4) Would WasserProduct remain profitable if the entrant were to enter the market anyway (for this you have to calculate the market price that…
- A monopoly function for a firm given ? = 20 − 0.2? where ? is price and ? is output. Find (a) Total revenue function (b) Average revenue function (c) Marginal revenue function (d) ? = dq/dp , p/q at ? = 50 and show that at this ∈ value, ?$(?) = 0.Mathematics for Business and Economics Q1) 3x2 ( 12x3 + 20 )0.5 within the range 6 and 8. Q2) The marginal revenue of a firm is given by the following equation: MR(Q) = 20 + 14Q + 13Q2 Where, Q represents the quantity produced. Also given, the total revenue of the firm, when they produce 5 units of output, is 50, i.e., TR(5) = 50. a)Calculate the firm's total revenue function. What is the value of the constant term in the total revenue function? b)Calculate the total revenue of the firm when the firm produces 7 units of output.Give only typing answer with explanation and conclusion The market demand for a monopoly firm is estimated to be: Qd = 100,000 - 500P + 2M + 500PR where Qd is quantity demanded, P is price, M is income, and PR is the price of a related good. The manager has forecasted the values of M and PR will be $50,000 and $20, respectively, in 2016. The average variable cost function is estimated to be AVC = 520 - 0.03Q + 0.000001Q2 Total fixed cost in 2016 is expected to be $4 million. The profit-maximizing price for 2016 is $80. $100. $260. $520. $560.