« previous next »

Author Question: Using the table above answer the following question. Assume that the marginal cost of production for ... (Read 97 times)

ARLKQ

  • Hero Member
  • *****
  • Posts: 571
on: Jun 29, 2018
Using the table above answer the following question. Assume that the marginal cost of production for this firm is 0 .
 
  If this firm is a monopolist and can only charge a unique price in whole dollar amounts which price will he charge to maximize profits? How much revenue would the firm collect? How would this answer change if this firm were to practice perfect price discrimination?

Question 2

Refer to Figure 2-6. If the economy is currently producing at point A, what is the opportunity cost of moving to point B?
 
  A) 6 thousand hammers B) 30 thousand wrenches
  C) 23 thousand hammers D) 8 thousand wrenches


tennis14576

  • Sr. Member
  • ****
  • Posts: 334
Reply #1 on: Jun 29, 2018
Answer to Question 1

Since marginal costs are zero the firm will want to maximize total revenue. This is achieved at a price of 3 . The firm would collect 9 . If the firm is able to engage in perfect price discrimination it will collect 15 (5 + 4 + 3 + 2 + 1).

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

If you use artificial sweeteners, such as cyclamates, your eyes may be more sensitive to light. Other factors that will make your eyes more sensitive to light include use of antibiotics, oral contraceptives, hypertension medications, diuretics, and antidiabetic medications.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

There are actually 60 minerals, 16 vitamins, 12 essential amino acids, and three essential fatty acids that your body needs every day.

Did you know?

A good example of polar molecules can be understood when trying to make a cake. If water and oil are required, they will not mix together. If you put them into a measuring cup, the oil will rise to the top while the water remains on the bottom.

Did you know?

Drugs are in development that may cure asthma and hay fever once and for all. They target leukotrienes, which are known to cause tightening of the air passages in the lungs and increase mucus productions in nasal passages.

heres the answer heres the answer
Leaning against a table with a pillow for support. Leaning against a table with a pillow for support.
How to set up and solve linear models (Question 3) How to set up and solve linear models (Question 3)
How to solve an exponential growth problem involving bacterial growth (Question 2) How to solve an exponential growth problem involving bacterial growth (Question 2)
Marginal Products of Physical and Human Capital Marginal Products of Physical and Human Capital
Genetics Question Genetics Question
Video: Major Elements in Biological Molecules: Carbohydrates

For a complete list of videos, visit our video library