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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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An example of an ________ ________ is where Sylvania provides lightbulbs that, one might assume, are safe to use and will last f
Juliette [100K]

Answer:

Implied warranty.

Explanation:

Implied warranty is when there are presumed assurance of the performance of a product due to the circumstances of the sale. For example when one purchases a television the assumption is that the television will work. This is the implied warranty when making a purchase.

In this instance Sylvania sells light bulbs and the buyer assumes that the bulbs are safe to use, and will last for a good period of time before they fail.

A violation of implied warranty for example is if one buysa product and it does not work at all. The customer can return the item for replacement.

7 0
3 years ago
A company works 320 days per year and has an annual demand of 2080 units of product desires to set an reorder point that will co
melisa1 [442]

Answer:

reorder point= 39 units

Explanation:

given data:

Annual demand = 2240 units.

No of days = 320

lead time is 4 working days

As we know,

Reorder point= Lead time demand + Safety stock

Lead time demand = Average daily usage * lead time

Average daily usage = \frac{Annual demand}{No of days operating in year }

average  Daily usage = \frac{2080}{320}= 6.5 units per day.

Lead time demand = 6.5* 4 = 26 units.

Safety stock = 2 days of average demand

= 2*6.5 = 13 units.

Hence reorder point= 26 + 13= 39 units.

4 0
3 years ago
The current price of the futures contract is $30. A six-month call option on the futures contract with a strike price of $30 is
babymother [125]

Answer:

Put Price = $4

Explanation:

We are applying Put Call Parity Theorem. Future Price + Put Price = Call Price + Strike Price

$30 + Put Price = $4 + $30

Put Price = $4 + $30 - $30

Put Price = $4

Thus, the price of six month put option = $4

7 0
2 years ago
When considering the impact of individual consumption levels on a country's economic health, which segment of the population is
atroni [7]
I think that in most countries, the marketing analysts would focus on the middle class. One factor is that, the rich class would always be outnumbered by the middle and the lower class. So even if they buy high-priced goods, they would only contribute a small part of the total profit. On the other hand, lower class people can't afford much of these products. That is maybe why commodities are advertising lower prices so as to attract more people. Hence, the answer is most probably letter D.
8 0
3 years ago
MacDonald's Farm, Green Acres, and Mickey's Farm sell wheat in a pure-competition environment which means that no
Stolb23 [73]

Different sellers of wheat like MacDonald's farm and Mickey's Farm where they do not have an influence on the price marks the existence of pure competition in the economy.

<h3>What is pure competition?</h3>

Pure competition refers to a market where there is free entry and exit of buyers and sellers in the market selling exactly the same product with, no buyer or seller can influence the price.

Hence, if there is a pure competition in the wheat market, none from the aforementioned sellers would be able to sell enough so that they can influence the price.

Learn more about pure-competition here:

brainly.com/question/1622043

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3 0
2 years ago
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