Price Discrimination: Exercises Part 1
... This problem, although less directly on the topic of price discrimination, provides useful insights into the problem of the inefficiencies caused by monopoly pricing. (a) Revenues as a function of quantity is R (q) = qp (q) = q (120 − q) = 120q − q2 implying that the marginal revenue is MR = R0 (q) = ...
... This problem, although less directly on the topic of price discrimination, provides useful insights into the problem of the inefficiencies caused by monopoly pricing. (a) Revenues as a function of quantity is R (q) = qp (q) = q (120 − q) = 120q − q2 implying that the marginal revenue is MR = R0 (q) = ...
Class 13
... has come from owning companies that were able to earn economic profits for a long time. Second, in perfect competition, companies would produce the quantity being produced as efficiently as possible in the short-run. This is also true for a monopoly, as any waste reduces the company’s profits. Howev ...
... has come from owning companies that were able to earn economic profits for a long time. Second, in perfect competition, companies would produce the quantity being produced as efficiently as possible in the short-run. This is also true for a monopoly, as any waste reduces the company’s profits. Howev ...
Questions review:
... Suppose that the price of the product remains at $2 but that the wage rate increases to $21. Find the new profit-maximizing quantity of labor. ...
... Suppose that the price of the product remains at $2 but that the wage rate increases to $21. Find the new profit-maximizing quantity of labor. ...
Suggested Homework Ans
... in the short run. The existence of economic profits will attract entry into the industry. Thus, firms are unlikely to earn economic profits over a long time period. Even in relatively competitive industries, however, there are firms that do exceptionally well over long time periods, for example by b ...
... in the short run. The existence of economic profits will attract entry into the industry. Thus, firms are unlikely to earn economic profits over a long time period. Even in relatively competitive industries, however, there are firms that do exceptionally well over long time periods, for example by b ...
Final from F2003
... 1. In a Cournot-Nash duopoly game, which of the following is false? A. The two firms earn lower profits than a single monopolist. B. The two firms earn higher profits than in the competitive equilibrium. C. The Nash equilibrium is always more profitable for the two firms, taken together, than the c ...
... 1. In a Cournot-Nash duopoly game, which of the following is false? A. The two firms earn lower profits than a single monopolist. B. The two firms earn higher profits than in the competitive equilibrium. C. The Nash equilibrium is always more profitable for the two firms, taken together, than the c ...
answers to end-of-chapter questions
... rule when an industry is purely competitive. If the last unit produced adds more to costs than to revenue, its production must necessarily reduce profits (or increase losses). On the other hand, profits must increase (or losses decrease) so long as the last unit produced—the marginal unit—is adding ...
... rule when an industry is purely competitive. If the last unit produced adds more to costs than to revenue, its production must necessarily reduce profits (or increase losses). On the other hand, profits must increase (or losses decrease) so long as the last unit produced—the marginal unit—is adding ...
Law of Demand
... Demand • Is the quantities of a good or service that buyers are willing and able to purchase at various prices • Demand schedule shows the various prices and quantity demanded at each price • Economists consistently will gather data and put it into a schedule and then to make it visually easier to ...
... Demand • Is the quantities of a good or service that buyers are willing and able to purchase at various prices • Demand schedule shows the various prices and quantity demanded at each price • Economists consistently will gather data and put it into a schedule and then to make it visually easier to ...
