Posted by Lorie on Sunday, December 6, 2009 at 1:35am.
The following table indicates the prices various buyers are willing to pay for a Miata sports car:
Buyer A Maximum price $50,000
Buyer B Maximum price $40,000
Buyer C Maximum price $30,000
Buyer D Maximum price $20,000
Buyer E Maximum price $10,000
The cost of producing the cars includes $50,000 of fixed costs and a constant marginal cost of $10,000. With a Quantity between 0 and 6 cars per period.
a) graph the demand, marginal revenue, and marginal cost curves.
b) What is the profit-maximizing rate of output and price for the monopolist? How much profit does the monopolist make?
c) If the monopolist can price-discriminate, how many cars will he sell?
d) How much profit will he make?
- college/microeconomics - economyst, Monday, December 7, 2009 at 1:21pm
First, derive a marginal revenue curve (like you did in your previous post.) So,
P=50000, Q=1, TR=50000, MR=50000
P=40000, Q=2, TR=80000, MR=30000
P=30000, Q=3, TR=90000, MR=10000
and so on.
b) he makes 3 cars, charges 30,000 each, and makes 10,000 profit.
c) He makes 5 cars, charges the maximum each buyer will pay TR=150,000 ...
- college/microeconomics - Anonymous, Saturday, June 13, 2015 at 4:30pm
Answer This Question
More Related Questions
- Microeconomics - The following table indicates the prices various buyers are ...
- economics - Producer surplus is the difference between: the maximum price a ...
- math - a soft ware buyer looking for a product to retail for $230.00 he wants ...
- Econ - In which of the following circumstances would a buyer be indifferent ...
- business math - a software buyer is looking for a product to retail for $230. he...
- real estate finance - A property sells for $125,000 and the homeowner has a ...
- math (percent) - A software buyer is looking for a product to retail for $230. ...
- Math - A buyer is paying a reduced $500 in closing costs on a home with a sale ...
- math - A buyer is paying a reduced $500 in closing costs on a home with a sale ...
- accounting - Exercise 5-3 Analyzing and recording merchandise transactions-both ...