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
allochka39001 [22]
3 years ago
14

John Gardner is the city planner in a medium-sized southeastern city. The city is considering a proposal to award an exclusive c

ontract to Clear Vision, Inc., a cable television carrier. Mr. Gardner has discovered that an economic planner hired a year before has generated the functions given below: P = 28 - 0.0008Q MC = 0.0012Q where Q = the number of cable subscribers and P = the price of basic monthly cable service. a. b. c. What price and quantity would be expected if the firm is allowed to operate completely unregulated? Mr. Gardner has asked you to recommend a price and quantity that would be socially efficient. Recommend a price and quantity to Mr. Gardner using economic theory to justify your answer. Compare the economic efficiency implications of (a) and (b) above.
Business
1 answer:
borishaifa [10]3 years ago
7 0

Answer:

<u>Monopoly</u>

P =      $20.00

Q = 10,000

<u>Socically Efficient:</u>

P = $16.80

Q = 14,000

The monopoly generates a deadthweight loss to maximize their gain.

In the socially efficient situation, there is no deadthweight loss threfore this makes the economy as a whole better.

Explanation:

Price = 28 - 0.0008Q

Marginal Cost  = 0.0012Q

Revenue: P x Q = (28 - 0.0008Q) x Q = 28Q - 0.0008Q²

Marginal Revenue:

R' = R(q) / dq = 28 -0.0016Q

We want to produce and sale until marginal revenue matches marginal cost:

28 -0.0016Q = 0.0012Q

28 = 0.0028Q

Q = 28 / 0.0028 = 10,000

P = 28 - 0.0008 (10,000) =

P = 28 - 8 = 20.00

The social efficiency will be that Price equals Marginal Cost.

28 - 0.008Q = 0.0012Q

28 = 0.0020Q

28 / 0.0020 = Q = 14,000

P = 28 - 0.0008(14,000) = 28 - 11.2 = 16,8

You might be interested in
The one-year forward rate of the British pound is quoted at $1.60, and the spot rate of the British pound is quoted at $1.63. Is
mihalych1998 [28]

Answer:

discount; 1.8%

Explanation:

Calculation for the forward rate using this formula

forward rate=(F/S) - 1

Let plug in the formula

forward rate= ($1.60/$1.63) - 1

forward rate= -1.8 percent.

Therefore The forward DISCOUNT is 1.8 percent.

7 0
3 years ago
A standard hour incentive plan is likely to be successful if :_________
Y_Kistochka [10]

Answer: employees want the extra money more than they want to work at a pace that feels comfortable

Explanation:

A standard hour plan is based on the units that employees produce and once that unit is met, a set hourly wage is paid to the employees and an incentive can be given once the standard number of hours is exceeded.

It should be noted that a standard hour incentive plan is likely to be successful if employees want the extra money more than they want to work at a pace that feels comfortable. This will motivate them to work for extra hours since they want the extra money.

3 0
2 years ago
Which site would the nurse assess first for the amount of drainage from a client discharged from the postanesthesia care unit (p
kondaur [170]

The Surgical incision is the site that the nurse will assess first for the amount of drainage from a client discharged from the postanesthesia care unit.

<h3>What is a Surgical incision?</h3>

It refers to the cut made through the skin and soft tissue to facilitate an an operation; most often, a multiple incisions are possible for an operation. but in general, the surgical incision are usually made as small/unobtrusive as possible to facilitate safe and timely operating conditions.

Therefore, this Surgical incision is the site that the nurse will assess first for the amount of drainage from a client discharged from the postanesthesia care unit.

Read more about Surgical incision

brainly.com/question/8543730

#SPJ1

8 0
1 year ago
Read 2 more answers
Suppose Joe's wage increased from $10 per hour to $12 per hour, and over the same time period the GDP deflator increased from 10
Burka [1]

Answer:

Explanation:

Im prettier sure if u add them with a calculator it could come out with the answer and it may add up too the correct answer

3 0
3 years ago
Suppose an industry has 100 firms, each with a supply curve P = 50 + 10Q . Furthermore, suppose the market demand curve is given
elena-14-01-66 [18.8K]

Answer: See explanation

Explanation:

The industry supply curve will be the supply curve given multiplied by the total number of firms. This will be:

P = 50 + 0.1Q

Check: since Q = 100

P = 50 + 10/100Q

P = 50 + 0.1Q

To get the Equilibrium price and quantity, we've to equate the market demand curve and supply. This will be:

Market demand = P = 200 - 0.9Q

Market Supply = P = 50 + 0.1Q

Therefore,

200 - 0.9Q = 50 + 0.1Q

200 - 50 = 0.1Q + 0.9Q

150 = Q

Equilibrium quantity = 150 units

Since P = 50 + 0.1Q

P = 50 + 0.1(150)

P = 50 + 15

P = 65

Equilibrium price is 65.

The units of output that will be produced by a firm operating in this market with a marginal cost function, MC = 130Q will be 2.

8 0
3 years ago
Other questions:
  • Jimmy establishes a Roth IRA at age 47 and contributes a total of $89,600 over 18 years. The account is now worth $112,000. Assu
    5·1 answer
  • The cost of land does not include:
    6·1 answer
  • Paddy has lots of cousins. With a family reunion in the near future, Paddy decides to collect income information for himself and
    13·1 answer
  • What is the setting of the story? “ Muffin Dragon”
    12·1 answer
  • Assume the market for cell phones is an oligopoly. Further assume that cell phone consumption and production generate no negativ
    5·1 answer
  • In 2018, Borland Semiconductors entered into the transactions described below. In 2015, Borland had issued 180 million shares of
    5·1 answer
  • The following is an estimated demand function:
    11·1 answer
  • 81) When a seller advertises an item at a low price but once in store pushes a similar item at a higher price, the seller is par
    12·1 answer
  • The purpose of the cash flow statement is to:
    5·1 answer
  • The total direct materials purchases of materials A and B (assuming no beginning or ending material inventory) required for July
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!