A firm has $1.5 million in sales, a Lerner index of 0.57, and a marginal cost of $10, and competes against 100 other firms in its relevant market. Calculate the price does this firm char
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Q1. A firm has $1.5 million in sales, a Lerner index of 0.57, and a marginal cost of $10, and competes against 100 other firms in its relevant market.
Calculate the price does this firm charge its customers?
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- A firm has $1.5 million in sales, a Lerner index of 0.57, and a marginal cost of $50, and competes against 800 other firms in its relevant market. a. What price does this firm charge its customers?A firm has $1.5 million in sales, a Lerner index of 0.57, and a marginal cost of $50, and competes against 800 other firms in its relevant market. a) What price does this firm charge its customers? b) By what factor does this firm mark up its price over marginal cost? c) Do you think that this firm enjoys much market power? Explain.A firm has $3.5 millionin sales, a Lerner index of 0.67, and a marginal cost of $50, and competesagainst 800 other firms in its relevant market. What price does this firm charge its customers?
- A firm has $2.5 million in sales, a Lerner index of 0.50, and a marginal cost of$10, and competes against 100 other firms in its relevant market. By what factor does this firm mark up its price over marginal cost?3. Consider the Bertrand competition with differentiated products. Firm A's demand is qA = 12 – 4pA + 4pB and firm B's demand is qB = 18 – 6pB + 4pA: The marginal cost of firm A is 4 while the marginal cost of firm B is 3. What are the prices the firms will charge?The makers of Tylenol pain reliever do a lot of advertising and have very loyal customers. In contrast, the makers of generic acetaminophen do no advertising, and their customers shop only for the lowest price. Assume that the marginal costs of Tylenol and generic acetaminophen are the same and constant. a) Draw a diagram showing Tylenol's demand, marginal revenue and marginal cost curves. Label Tylenol's price and mark-up over marginal cost. b) Repeat part (a) for a producer of generic acetaminophen. How do the diagrams differ? Which company has the bigger mark-up? Explain. c) How might barriers to entry influence the behaviour of the makers of Tylenol? d) What factors would affect the extent to which the makers of Tylenol could engage in predatory or destroyer pricing to force out competitors in this market?
- Dalia owns a small coffee roasting firm in Manchester. She is in a monopolistically competitive market and so has some market power. The inverse demand function that she faces is given by P=21 - 0.7 Q where P is the price per kilo and Q is the kilos of coffee demanded and her total costs are given by TC = 18 + 12 Q + 0.3 Q2 (a) What is the marginal revenue function of this firm? Use capital letters in your response (i.e. Q not q). MR= (b) What is the marginal cost function of this firm? Use capital letters in your response (i.e. Q not q) MC= (c) Which of the following best describes what the marginal cost means in words? O It is the cost Dalia will have to pay to produce another kilo of coffee and this cost is always the same. O The cost of producing a given level of output. O The average cost of all the output and it depends on the total level of output. O The cost of producing more output. O It is the cost Dalia will have to pay to produce another kilo of coffee and it depends on the…40 Output Total Total (Q) Price Revenue Cost 1 $20.00 $2.50 i of 2 $15.00 $5.00 $10.00 $7.50 $5.00 $10.00 The table above shows demand and cost information for a firm that has market power and can set its price. If the firm is able to Perfectly Price Discriminate, it's profit maximizing Output (Q) is: Select one: а. 3 b. 4 C. d. 1Suppose the own price elasticity of market demand for retail gasoline is −0.6, the Rothschild index is 0.4, and a typical gasoline retailer enjoys sales of $1.5 million annually 1. What is the price elasticity of demand for a representative gasoline retailer’s product? 2. Now assume a Lerner index of 0.6, and a marginal cost of $40, What price does this firm charge its customers? 3. By what factor does this firm mark up its price over marginal cost? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- Dalia owns a small coffee roasting firm in Manchester. She is in a monopolistically competitive market and so has some market power. The inverse demand function that she faces is given by P=28 - 0.9 Q where P is the price per kilo and Q is the kilos of coffee demanded and her total costs are given by TC = 21 + 9 Q + 0.4 Q2 (a) What is the marginal revenue function of this firm? Use capital letters in your response (i.e. Q not q). MR= (b) What is the marginal cost function of this firm? Use capital letters in your response (i.e. Q not q) MC= (c) Which of the following best describes what the marginal cost means in words? The cost of producing a given level of output. It is the cost Dalia will have to pay to produce another kilo of coffee and it depends on the total level of output. The average cost of all the output and it depends on the total level of output. It is the cost Dalia will have to pay to produce another kilo of coffee and this…A firm has $1,900,000 in sales, a Lerner index of 0.59, and a marginal cost of $40, and competes against 1000 other firms in its relevant market Instruction: Enter your responses rounded to two decimal places. a. What price does this firm charge its customers? $ b. By what factor does this firm mark up its price over marginal cost?5- 3- 1- 20 40 60 80 100 Q MR Using the above graph, This profit-maximizing firm will produce Blank 1 units. -MC What price will this profit-maximizing firm charge? $Blank 2 (Do NOT enter the '$' in your response. Enter only the whole dollar amount; do NOT enter cents.) If the industry was perfectly competitive instead of monopolistic, then market output would be Blank 3 units and market price would be $Blank 4. (Do NOT enter the '$' in your response. Enter only the whole dollar amount; do NOT enter cents.) Blank 1 Blank 2 Blank 3 Blank 4 Add your answer Add your answer Add your answer Add your answer