If I have a constant marginal cost of $1 and a constant price of $5 and...
If I have a constant marginal cost of $1 and a constant price of $5 and a maximum quantity of 1000, what is the producer surplus?
Homework Answers
Marginal cost represents the minimum acceptable price. Actual price is $5 and constant marginal cost is $1. Therefore when one unit is sold, a total of $4 is received as producer surplus. For 1000 units sold, the producer surplus is $4 multiplied by 1000 or $4000
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If I have a constant marginal cost of $1 and a constant price of
$5 and...
A small town is served by many competing supermarkets, which have constant marginal cost. a Using...
A small town is served by many competing supermarkets, which have constant marginal cost. a Using a diagram of the market for groceries, show the consumer surplus, producer surplus and total surplus. Now suppose that the independent supermarkets combine to form one chain. Using a new diagram, show the new consumer surplus, producer surplus and total surplus. Relative to the competitive market, what is the transfer from consumers to producers? What is the deadweight loss? b
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2. A small town is served by many competing supermarkets, which have the same constant marginal cost. a. Using a diagram of the market for groceries, show the consumer surplus, producer surplus,...
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2....
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A small town is served by many competing supermarkets, which all have the same constant marginal...
A small town is served by many competing supermarkets, which all have the same constant marginal cost.
Use the black point (plus symbol) to show the competitive price and quantity in this market. Then use the green area (triangle symbol) to shade the area representing consumer surplus in the market for groceries, and use the purple area (diamond symbol) to shade the area representing producer surplus.
Now suppose that the independent supermarkets combine into one chain.
Use the black point...
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Question 5 5 pts The difference between the actual market price and the lowest price a seller will accept is called the difference between the highest price a consumer will pay and the actual market price is called producer surplus; consumer surplus consumer surplus producer surplus marginal beneht; marginal cost marginal cost marginal benent
A small town is served by many competing supermarkets, which have constant marginal cost. a Using a diagram of the market for groceries, show the consumer surplus, producer surplus and total surplus. Now suppose that the independent supermarkets combine to form one chain. Using a new diagram, show the new consumer surplus, producer surplus and total surplus. Relative to the competitive market, what is the transfer from consumers to producers? What is the deadweight loss? b
1. Suppose that a single-price monopolist faces the demand function P 100 Q where I is average weekly household income, and that the firm's marginal cost function is given by MC(Q) 2Q. The firm has no fixed costs. = (a) If the average weekly household income is $600, find the firm's marginal revenue function. (b) What is the firm's profit-maximizing quantity of output? At what price will the firm sell that output? What will the firm's marginal cost be? (c)...
Suppose that a price taker had a marginal cost function given by: MC = 10 + 2q. In a competitive market, the price is $20. If the firms in this industry form a cartel, this firm will have a production quota of 4 units. The cartel will be able to increase the price to $24. 21 betermine the producer surplus when the firm produces the production quota. 22)Suppose that if this firm cheats on the cartel, the price remains at...
2. A small town is served by many competing supermarkets, which have the same constant marginal cost. a. Using a diagram of the market for groceries, show the consumer surplus, producer surplus, and total surplus. b. Now suppose that the independent super- markets combine into one chain. Using a new diagram, show the new consumer surplus, producer surplus, and total surplus. Relative to the competitive market, what is the transfer from consumers to producers? What is the deadweight loss?
2....
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A small town is served by many competing supermarkets, which all have the same constant marginal cost.
Use the black point (plus symbol) to show the competitive price and quantity in this market. Then use the green area (triangle symbol) to shade the area representing consumer surplus in the market for groceries, and use the purple area (diamond symbol) to shade the area representing producer surplus.
Now suppose that the independent supermarkets combine into one chain.
Use the black point...
Question 5 5 pts The difference between the actual market price and the lowest price a seller will accept is called the difference between the highest price a consumer will pay and the actual market price is called producer surplus; consumer surplus consumer surplus producer surplus marginal beneht; marginal cost marginal cost marginal benent
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