1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
jeka94
3 years ago
10

A monopolist has the total cost function c(q) = 750 + 5q. The inverse demand function is 140 - 7q, where prices and costs are me

asured in dollars. If the firm is required by law to meet demand at a price equal to its maginal costs,a. the firm will make positive profit but not as much profit as it would make if it were allowed to choose its own price.b. the firm's profits will be zero.c. the firm will lose $375d. the firm will lose $750e. the firm will lose $450
Business
1 answer:
Ierofanga [76]3 years ago
4 0

Answer:

d. the firm will lose $750

Explanation:

marginal cost is the derivate of the cost function: It represent the cost of producting an additional unit

cost: 750 + 5q

dC/dQ = 5

We have determinate that marginal cost is $5 thus, we should price at the same value. The mistake from the goverment is to equalize marginal cost with price instead of marginal revenue.

This will make the firm loss the fixed component of the cost as will sale to pay up the variable cost.

The fixed cost is $750 so that is the loss from operations

You might be interested in
What is unemployment insurance fund
MArishka [77]
Salutations!

What is unemployment insurance fund?

Unemployment insurance fund is a short term holiday, or consolation where workers do not work due to personal issues, such as: illness, family cases etc.

Hope I helped :D
3 0
3 years ago
True Help is a nonprofit organization that works toward rehabilitating the homeless. The credo of the organization is "help us h
maw [93]

Answer: C

Explanation:

7 0
3 years ago
Hector would like to buy a new pair of soccer cleats. Hector prefers Adidas to Puma brand soccer cleats. But Hector chooses to b
oksano4ka [1.4K]

Answer: Option (A) is correct.

Explanation:

It was given that consumer prefers Adidas to puma brand soccer cleats but he buys puma brand soccer cleats. This is only because of the price theory and rational consumer choice. We know that a rational consumer will choose a product with a lower price. Both puma and Adidas brand soccer cleats are substitutes, thus, if the price of puma cleats is lower than the Adidas cleats then he should prefer puma brand soccer cleats.

3 0
3 years ago
According to Adam Smith and other classical economists, why is the economic theory supporting market economies (or capitalism) m
emmasim [6.3K]
According to Adam Smith and other classical economists, why is the economic theory supporting market economies (or capitalism<span>) </span>much more realistic than theories supporting command economies<span>? ... Americans prefer to have the </span>market<span>, rather </span>than<span> the government, to manage their </span>economy<span>.</span>
4 0
3 years ago
The need for ______________ can complicate information sharing among emergency personnel.
Yanka [14]

I believe the answer is: Advanced equipment

During emergency situation, many of the personnel would most likely be taken from volunteer groups who do not have affiliation with the federal organizations. Because of this, they would not have as much proficiency in handling advanced equipment like trained personnel.

3 0
3 years ago
Read 2 more answers
Other questions:
  • What would be the value of the bond described in Part d if, just after it had been issued, the expected inflation rate rose by 3
    7·1 answer
  • It took you four months to find a job, and you were almost out of money, when you finally landed your position. Today your boss
    15·1 answer
  • Renee contracts with Scott to pay him $25,000 for his work on Renee’s new album "Hip Pop." After Scott performs, they sign an ac
    7·1 answer
  • There are 300 purely competitive farms in the local dairy market. Of the 300 dairy farms, 298 have a cost structure that generat
    11·1 answer
  • Testbank Multiple Choice Question 73 Sheffield Corp. issued 10200 shares of its $5 par value common stock having a fair value of
    14·1 answer
  • Burkhardt Corp. pays a constant $13.60 dividend on its stock. The company will maintain this dividend for the next 9 years and w
    9·1 answer
  • Refer to the scenario to answer the following questions. A government worker surveys a number of households and comes up with th
    12·1 answer
  • The primary difference between the accrual basis and the cash basis of accounting is: (You may select more than one answer. Sing
    7·1 answer
  • There are only two consumers in a market, Harry and Hermione. Harry is willing to buy 12 magic wands when the price is $20 per w
    14·1 answer
  • Partners Cantor and Dickens have capital balances in a partnership of $153000 and $241000, respectively. They agree to share pro
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!