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Author Question: A monopolist has a marginal cost of 4 and no fixed cost. It faces the following inverse demand ... (Read 49 times)

gonzo233

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on: Jul 1, 2018
A monopolist has a marginal cost of 4 and no fixed cost. It faces the following inverse demand curve: p = 40 - q. The monopolist can introduce a new packaging for its product. Such new packaging does not alter the marginal cost. It makes the product more attractive for the consumer, and it would lead to a new inverse demand curve p = 40 - 0.5q. What is the maximum amount that the monopolist would be willing to invest in this new packaging project?
 
  A) 245
  B) 324
  C) 420
  D) It cannot be determined.

Question 2

One firm previously operated as a monopoly. Now, one potential entrant exists. Consumers would prefer
 
  A) entry, and the firms to split the output equally.
  B) no entry, and for the incumbent to produce the Stackelberg leader level of output.
  C) entry, and for the incumbent to produce the Stackelberg leader level of output.
  D) no entry, and the monopoly to continue.
Microeconomics ¦ Perloff ¦ 8th Edition
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IAPPLET

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Reply #1 on: Jul 1, 2018
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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gonzo233

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Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)

pratush dev

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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