Question

you are given the following information about a monopsonist: The demand is: P = 30 –...

you are given the following information about a monopsonist: The demand is: P = 30 – 0.5Q, The average expenditure curve is AE = Q And the marginal expenditure curve is ME = 2Q a. Given the above information, what quantity will the monopsonist purchase, and how much will it pay per unit?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Consider the following monopolistic market: Demand:     P = 30 – 0.5Q Costs:         TC = 100+Q2 Solve for...
Consider the following monopolistic market: Demand:     P = 30 – 0.5Q Costs:         TC = 100+Q2 Solve for the monopoly’s optimal price and quantity.   How much is the profit? Please calculate elasticity of demand. And verify the mark-up formula.    Now consider a unit tax of $5/unit to be paid by the seller. Draw the market demand and marginal cost curves before and after the tax. Solve for the new consumer and producer prices and the market quantity with the tax. Based...
Given the following demand function for a community hospital: P = 5000 – 0.5Q, where P...
Given the following demand function for a community hospital: P = 5000 – 0.5Q, where P is the price for hospital services, and Q is the quantity of hospital services per volume demanded. Its marginal cost function is P = 1000 + 1.5Q, where P is the marginal cost of producing hospital services, and Q is the quantity of hospital services provided. The hospital has an average total cost of $2000 per service provided. A. Use the Twice As Steep...
1. A monopsonist has the production function Q=4⋅L and faces the following labor supply and product...
1. A monopsonist has the production function Q=4⋅L and faces the following labor supply and product demand equations respectively. W=2+0.05⋅L P=10−0.025⋅Q How much labor should the firm hire in order to maximize profits if they mark their price 300% above marginal cost? Answer is not 10 2. A monopsonist has the production function Q=4⋅L and faces the following labor supply and product demand equations respectively. W=2+0.05⋅L P=10−0.025⋅Q What wage rate should the firm pay in order to maximize profits if...
A ice cream parlous in a monopolistically competitive market faces a demand curve given by P...
A ice cream parlous in a monopolistically competitive market faces a demand curve given by P = 12 – 0.5Q. Marginal revenue of MR = 12 – Q. The variable costs of producing ice cream are VC = 2Q and so the marginal costs are constant at $2. If the ice cream parlor is in a long-run equilibrium, what must its fixed costs be?
The paper industry is the major industrial source of water pollution. The inverse demand curve for...
The paper industry is the major industrial source of water pollution. The inverse demand curve for the paper market (which is also the marginal benefit curve) is P = 450 - 2Q where Q is the quantity consumed when the price consumers pay is P. The inverse supply curve (also the marginal private cost curve) for refining is MPC = 30 + 2Q. The marginal external cost is MEC = Q where MEC is the marginal external cost when the...
Assume that a monopolist sells a product with inverse demand given by  p = 12 – 0.5q,...
Assume that a monopolist sells a product with inverse demand given by  p = 12 – 0.5q, where  p is the price of the product and  q is its quantity, and the monopolist’s marginal and average cost is equal to 6. (a) Find the profit maximising level of q and p, and the firm’s profit. Find the profit maximising level of output and profit if the maximum price that can be charged per unit is (i) p = 7, (ii)  p = 10. (b)...
The paper industry is the major industrial source of water pollution. The inverse demand curve for...
The paper industry is the major industrial source of water pollution. The inverse demand curve for the paper market (which is also the marginal benefit curve) is P = 450 - 2Q where Q is the quantity consumed when the price consumers pay is P. The inverse supply curve (also the marginal private cost curve) for refining is MPC = 30 + 2Q. The marginal external cost is MEC = Q where MEC is the marginal external cost when the...
Part A A demand curve is P = 10- Q. So its MR is A)5-2Q B)10-...
Part A A demand curve is P = 10- Q. So its MR is A)5-2Q B)10- 4Q C)10 - Q D)10 -2Q Part B A non- competitive firm's demand curve is P = 10- 2Q. So its MR is A)5-2Q B)10- 4Q C)10 - Q D)5 - Q Part C "If a firm with pricing power in the market faces a demand curve of P = 1800-2Q and marginal costs of MC = 200, how much is the equilibrium (profit...
Question 5 Assume that a monopolist sells a product with inverse demand given by  p = 12...
Question 5 Assume that a monopolist sells a product with inverse demand given by  p = 12 – 0.5q, where  p is the price of the product and  q is its quantity, and the monopolist’s marginal and average cost is equal to 6. (a) Find the profit maximising level of q and p, and the firm’s profit. Find the profit maximising level of output and profit if the maximum price that can be charged per unit is (i) p = 7, (ii)  p =...
Assume that a monopolist sells a product with inverse demand given by p = 12 –...
Assume that a monopolist sells a product with inverse demand given by p = 12 – 0.5q, where p is the price of the product and q is its quantity, and the monopolist’s marginal and average cost is equal to 6. Word limit per question: 400 words (200 words per part of question) (a) Find the profit maximising level of q and p, and the firm’s profit. Find the profit maximising level of output and profit if the maximum price...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT