answer - 9) MC (190,280) (170,200) (130,120) (90,80)...

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17 75 2)-$500 ; -$2500; $2000 3) $1500 ; $2500 ; $1000 4)-1/3 ; TR=50Q-Q^2/3 ; MR=50-(2/3)Q; slope equal to twice the coefficient of Q in the inverse demand equation and the same P-intercept DEMAND CURVE (0,50)(150,0) MR curve (0,50) (75,0) 5) a) Quantity=300 b) where MR>MC c)revenues are maximized 6) The demand for some drugs is very inelastic 7)orange curve (0,800) (300,0) Purple curve (0,600) (300,0) 300 packages ; $300 per package ; 300 packages ; $400 ; does not change 8)a) Start with a marginal cost and then horizontally add the quantity produced at each plant b) decrease production at the high-cost plant and increase production at the low-cost plant
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Unformatted text preview: 9) MC (190,280) (170,200) (130,120) (90,80) (70,80) (40,40) MC1 ; 130,000tons of steel ; 40,000 tons of steel ; 90,000 tons of steel; $120 per ton of steel ; $120 per ton of steel 10) the interaction among firms is less competitive 11) CS (0,12) (07 8) 7 67 87 Ps (0,8) (6,8) (6,4) (0,0) DWL (9,6) (6,4) (6,8) Higher than the deadweight loss above because profits are spent on ownvers consumption 12) 5 units; $6 ; MR (0,4) (7.5, 4)(7.5,0) 6.75 UNITS; $ 4 per unit ; True 13) one firm hold a patent 14) Monopoly profit (0,100)(0,60) (60,60)(60,100) LOSS WHEN P=MC (0,20)(140,20)(140, 40) (0,40) TURE 15) OF ALL THESE REASONS...
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This note was uploaded on 06/18/2011 for the course ECON 2X03 taught by Professor Jamesbruce during the Fall '10 term at McMaster University.

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