The whole idea of natural monopolies is that fixed costs (including initial investments) are so high that to have a number of companies undertake them would mean that they would all have really high costs that would then be passed on to consumers. For example, it is ...
A monopoly has a total cost function c = 250 + x^2 + 5x for its product, which has demand function p = (-1/3)x^2 - 2x +30.
Find the consumer's surplus at the point where themonopoly has a maximum profit.
Please see the attached file.
Consider the following monopoly that produces paperback books:
Fixed Costs = $1,000 Marginal Costs = $1 (and is constant)
A) Draw the average total costcurveandthe marginal costcurve on the same graph.
B) Assume that all households have the same demand schedule, given by the following rela
- Since a monopoly is the only source of supply, consumers are entirely at its mercy. There is no limit to the price themonopoly can charge?. Evaluate this statement.
- A monopoly´s profits are not necessarily bad, but its reduction in output is. Evaluate this statement.
The market demandcurve is QD= 50 - P. The marginal costcurve is MC = 4Q + 6.
a. Assuming the marginal costcurve is for a competitive industry as a whole, find the profit-maximizing level of output and price.
b. Assuming the marginal costcurve is for only one firm which comprises the entire market, find the profi
A company wants to prepare a demandcurve for its product that it is selling. How would it get the information to prepare the schedule? How could a company prepare a demandcurve for a new product that has not been seen by the public?
The water company is privately owned and is the only water company in town. It is licensed and franchised by the city for a 10 - year term, just renewed. They advertise on TV, enclose a newsletter with their bills, and donate to local school activities. Why do they do these things?