Business, 28.11.2019 19:31 chickenwing32

Chegg a monopolist with cost function c(q) = f + q serves a market with demand d(p) = 5 − p. note that the average cost function of the monopolist is decreasing. this corresponds to the "natural monopoly" case we mentioned in class.

(a) what quantity would the monopolist sell in the market and what would be the market price if f = 3? what if f = 5? how much profit does the monopolist make when f = 3 or when f = 5?
(b) assume f = 5. the government is considering to offer a subsidy s per unit to the monopolist. what is the optimal value of s if the government wants to maximize total surplus?

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 11:00

Alocal barnes and noble bookstore ordered 80 marketing books but received 60 books. what percent of the order was missing?

Answers: 1

Answer

Business, 22.06.2019 11:20

Lusk corporation produces and sells 14,300 units of product x each month. the selling price of product x is $25 per unit, and variable expenses are $19 per unit. a study has been made concerning whether product x should be discontinued. the study shows that $72,000 of the $102,000 in monthly fixed expenses charged to product x would not be avoidable even if the product was discontinued. if product x is discontinued, the annual financial advantage (disadvantage) for the company of eliminating this product should be:

Answers: 1

Answer

Business, 22.06.2019 14:40

In the fall of 2008, aig, the largest insurance company in the world at the time, was at risk of defaulting due to the severity of the global financial crisis. as a result, the u.s. government stepped in to support aig with large capital injections and an ownership stake. how would this affect, if at all, the yield and risk premium on aig corporate debt?

Answers: 3

Answer

Business, 22.06.2019 18:30

Order these statements in the correct order to fill in the central idea and key points for a chronological speech. question 22 options: there are several steps that someone must take to become a doctor. finally, you will need to get a medical license, and become board certified in your specialty area. then, you must get admitted into to medical school and earn a medical degree. next, you will need to complete a residency. first you must earn a bachelors degree.

Answers: 2

Answer

You know the right answer?

Chegg a monopolist with cost function c(q) = f + q serves a market with demand d(p) = 5 − p. note th...

Questions