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il63 [147K]
3 years ago
11

Suppose a monopolist has a demand curve that can be expressed as P = 90 - Q. The monopolist's marginal revenue curve can be expr

essed as MR = 90 - 2Q. The monopolist has constant marginal costs and average total costs of $10. Refer to Scenario 15-4. The profit-maximizing monopolist will have a deadweight loss of a. $6, 400. b. $3, 200 c. $1, 600. d. $800.

Business
2 answers:
PolarNik [594]3 years ago
8 0

Answer:

The profit-maximizing monopolist will have a deadweight loss of is $1, 600

Explanation:

A monopolist produces at Marginal Rate =Marginal Cost

equating both concepts previously enlisted:

90-2Q=10

2Q=80

Q=40

P=90-40=50

Profit=(P-ATC)*Q

=(50-10)*40

=$1600

the profit is $1600

Vadim26 [7]3 years ago
4 0

Answer:

d. $800

Explanation:

MR refers to the margin revenue that is equal to the marginal cost MC to maximize a company's profit (Monopoly condition), therefore:

P = 90 - Q

MR = MC = $10 = 90 - 2Q

solving the equation:

Q = 40

P = 50

The deadweight loss DL can be calculated using the formula:

DL = 0.5*Q*(P-MR) = 0.5*40*(50-10) = 800

Note: the deadweight loss can be calculated graphically, the yellow area in the image down below is known as the deadweight loss area and its value could be extracted from the graph.

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Government is lobbied to institute price controls because: Multiple Choice
trapecia [35]

Answer:

people care more about their own surplus than they do about total surplus. 

Explanation:

Price control can either be a price ceiling or a price floor.

A price ceiling is when the government or an agency of the government sets the maximum price for a good or service. It is usually set below equilibrium price.

Price ceiling increase consumer surplus and reduce producer surplus.

A price floor is when the government or an agency of the government sets the least price a good or service can be sold. It is usually set above equilibrium price.

Price floor increases producer surplus and reduces consumer surplus.

Producers would be advocating for a price floor because it increases their surplus, while, consumers would advocate for a price ceiling.

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the product.

Producer surplus is the difference between the price of a product and the least price the seller is willing to sell the product.

I hope my answer helps you

7 0
3 years ago
Both nadia and samantha are applying to insure their car against theft. nadia lives in a secure neighborhood, where the probabil
MrRissso [65]

Answer:

Samantha will be willing to pay $ 2,600. The right answer is B.

Explanation:

Acording to the details, the probability of loss in case of Samantha's neighborhood is 25%.

Hence, the expected loss to her will be = 25/100 * 10000 = $2500

Samantha is willing to pay $100 over her expected loss, hence the amount that Samantha be willing to pay = ($2500 + $100 ) = $2600

Samantha will be willing to pay $2600

7 0
3 years ago
Delivering health care goods and services requires several inputs, in economic terms. These inputs can be classified as either Q
Elina [12.6K]

Delivering healthcare goods and services requires several inputs in economic terms these inputs can be classified as either <u>labor</u><u> </u>or non-labor.

<h3>What are non-labor inputs?</h3>

Speaking from the perspective of the factors of production, on one hand, non-labor inputs refers to such inputs as:

  • Energy
  • Land
  • Capital
  • Information etc.

The amount of labor input is calculated as either the number of employees or the number of hours they put in during a specific time period, such a year.

The majority of nations gather information on the number of employees and are able to compute labor productivity as output per employee.

Learn more about labor inputs:
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6 0
2 years ago
A vendor asks its business partners to place logos or banners on their Web sites. If customers click on a logo, visit the vendor
erma4kov [3.2K]

Answer: Affiliate marketing

Explanation: Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate's own efforts of marketing. Affiliate marketing is the process of earning a commission by promoting other people's (or company's) products. The scenario above illustrates affiliate marketing, because If customers click on a logo, visit the vendor’s site, and make a purchase, then the vendor pays a commission to the partner.

3 0
3 years ago
Last year, Courtney Company reported sales of $640,000, a contribution margin of $160,000, and an operating loss of ($40,000). B
Elanso [62]

Answer:

 Break-even sales         =  $800,000.

Explanation:

<em>The beak-even point is the units of products to be sold or number of customers to be served to enable a business to cover exactly its total cost from the revenue. At the break-even point, the business makes no profit or no loss because the contribution from sales exactly equals the total fixed cost</em>

<em>Break-even in sales revenue = Total fixed cost/Contribution margin</em>

<em>Contribution margin (%) = Contribution/ sales ×  100</em>

                                        = 160,000/640,000

                                        = 0.25 ×  100

                                        = 25%

<em>Fixed cost =   Contribution -   operating income</em>

                                    = 160,000- -( 40,000)

                             = 160,000 + 40,000

                             = 200,000

<em>Break-even point sales = 200,000/25%</em>

                                       =  $800,000.

3 0
3 years ago
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