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
ELEN [110]
3 years ago
5

A monopolist sells in two geographically divided markets, the East and the West. Marginal cost is constant at $50 in both market

s. Demand and marginal revenue in each market are as follows:
QE = 900 - 2PE
MRE = 450 - QE
QW = 700 - PW
MRW = 700 - 2QW
a. Find the profit-maximizing price and quantity in each market
b. In which market is demand more elastic?
Business
1 answer:
noname [10]3 years ago
5 0

Answer:

A) QE = 400, PE = 250

     QW = 325, PW = 375

b) east market has more elastic market demand

Explanation:

Given data :

Marginal cost = $50 ( both markets )

demand and marginal revenue in each market are given differently

a) Determine/find the profit-maximizing price and quantity in each market

For east market :

50 = 450 - QE

hence QE = 450 -50 = 400

since QE = 400 ( quantity for east market )

400 = 900 - 2PE

PE = 250 ( PROFIT maximizing price for east market )

For west market

50 = 700 - 2QW

Hence QW = 325

since QW = 325

325 = 700 - pw

PW = 375

B) The market in which demand is more elastic is the east market because the quantity demanded is higher and also the profit maximizing price is lower as well

You might be interested in
Annie's team has just finished a major project and the team has, after a long time, got some free time on hand. However, for the
Natasha_Volkova [10]

Answer:

B.

Explanation:

B is giving a bit of a impersonal approach, and comes across as just pushing company rules, especially by attaching a company policy.  Her response should be more precise with options.  Annie does not provide that in response B.

5 0
3 years ago
Kendrik is in charge of his company’s subsidiary in Beijing. He recently received a large bonus check because the subsidiary had
vova2212 [387]

Answer:

The correct answer is letter "B": incentives.

Explanation:

Incentives are bonuses typically in the form of money that top executives receive in the organizational architecture. These are provided after managers' outstanding performances and aim to motivate them to continue performing as well or even better. In some cases, managers distribute part of the incentives among their work teams to boost employees' morale.

6 0
3 years ago
The individual firm in a purely competitive labor market faces:
Reptile [31]

Answer:

The correct answer is D. perfectly elastic labor supply curve and a downsloping labor demand curve.

Explanation:

The basis of the model is the assumption that no player in the market is large or strong enough to be able to control the industry. There are many buyers and sellers, and each one is small. Companies can sell any amount of production at market prices. Companies in this form of market face a horizontal demand curve, and all companies produce a homogeneous product.

A large number of small sellers and buyers exist in this type of market. No entity is so powerful that it can change the face or direction of the industry. No company can produce any control over the price or quantity of the product. Although each company increase or decrease prices and production, the industry as a whole remains unchanged.

8 0
3 years ago
A client-server relationship is the basic form of a _____.
tigry1 [53]

Answer: Computer Network

Explanation: Apex

7 0
3 years ago
Christina purchased 200 shares of stock at a price of $62.30 a share and sold them for $70.25 a share. She also received $148 in
vivado [14]

Answer:

B) 9.75 percent

Explanation:

Christina's net gains with this operation was:

  • $148 in dividends
  • 200 shares x ($70.25 - $62.30) = 200 x $7.95 = $1,590

total gain = $148 + $1,590 = $1,738

Christina invested 200 x $62.30 = $12,460

her nominal rate of return = $1,738 / $12,460 = 13.95%

if the inflation rate was 4.2%, then her real rate of return = 13.95% - 4.2% = 9.75%

8 0
4 years ago
Other questions:
  • Selling a good at a price determined by the intersection of the demand curve and the marginal cost curve is consistent with the
    14·1 answer
  • Businesses commonly rely upon groups to make decisions because of the many advantages to group decision making. Which of the fol
    15·1 answer
  • If one is injured during the process of saving a life, the person who was trying to help is protected by what law?
    5·2 answers
  • SCENARIO 2: You started a small business, but realised there was no demand for your product
    13·1 answer
  • Betsy Union is the Pika Division manager and her performance is evaluated by executive management based on Division ROI. The cur
    6·1 answer
  • 50 POINTS!! :) The graph shows the marginal cost of producing soccer cleats for Sabrina’s Soccer.
    13·2 answers
  • Miramar Industries manufactures two products, A and B. The manufacturing operation involves three overhead activities - producti
    5·1 answer
  • Economists define and measure economic growth as ______.
    15·1 answer
  • Carlo's company hired a contractor in Venezuela to design and build a plant, supply the process technology, provide the producti
    13·1 answer
  • A _________is part of a story that gives meaning to the distinct systems of benefits that well-branded products promise to deliv
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!