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?
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- A firm has $2,100,000 in sales, a Lerner index of 0.57, 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? $Suppose 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.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?
- 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?Hotel Nemo is the only under-sea hotel in the nation. The table sets out the demand schedule for hotel rooms and the cost schedule for running the hotel. Calculate Hotel Nemo's profit-maximizing price, output and economic profit if it charges a single price for all rooms. Hotel Nemo's profit-maximizing output is Hotel Nemo's profit-maximizing price is >>> Answer to 2 decimal places. rooms a night. a room. When Hotel Nemo produces the profit-maximizing output and charges the profit-maximizing price, economic profit is s >>> If the firm incurs an economic loss, indicate the loss with a minus sign. If the firm eams an economic profit, do not include a plus sign. Price (dollars per room) 272722NO 30 24 21 18 » 15 12 9 6 Quantity (rooms per night) 0 100 200 300 400 500 600 700 800 Total cost (dollars per night) 1,000 1,900 2,800 3,700 4,600 5,500 6,400 7,300 8,200Q1. 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?
- The college textbook market is a very profitable segment for global book publishers. Assume that ABC publisher’s best-selling economics textbook has this demand curve: P = 150 - Q, where Q denotes yearly sales (in thousands) of books. The cost of producing and shipping each additional book is $40, and the publisher pays a $10 per book royalty to the author. The publisher’s overall annual promotion spending entails an average cost of about $10 per book. a. Find ABC’s profit-maximizing output and price for the economics textbook. b. Another publisher has raised the price of its best-selling economics text by $15. Would you follow suit (that is, would you match the price increase for your textbook)? Explain briefly why or why not. [Hint: construct the new demand curve, taking into account the price hike and recalculate P* and Q*] c*. To save on fixed costs, ABC plans to contract out the printing of its textbooks to outside vendors. Obviously, this would entail a higher printing cost for…Drug dealers purchase a drug at a constant marginal cost of $40 per unit. The drug is then sold in perfect competition. Suppose that rival gangs seize 50% of the drugs and resell them at the prevailing market price. What would be the effect of these gangs on the equilibrium market price? It would go up by $80 It would go up by $40 It would stay the same It would go down by $20 It would go up by $20A profit-maximising firm faces a downward-sloping demand curve for its output and has marginal costs that increase with output. Show, on a single diagram, how its profit maximisation decision can be represented both in terms of a feasible set optimisation and its marginal revenue and marginal cost. Why is there a deadweight loss in this case?
- 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?2. A ski resort faces daily demand given by p = a - Q, where a varies from day to day. Over a three- day period, a takes on the values 80.100, and 120. The marginal cost is zero. The fixed cost for the three-day period is $2500. If the firm uses dynamic pricing, it changes its price every day to maximize profit. If it uses non-dynamic pricing, it sets the same price for all three days, assuming that a takes on its average value of 100 each day. Calculate the consumer surplus and the firm's profit over the three-day period under each pricing approach.Use the orange points (square symbol) to plot the initial short-run industry supply curve when there are 10 firms in the market. (Hint: You can disregard the portion of the supply curve that corresponds to prices where there is no output since this is the industry supply curve.) Next, use the purple points (diamond symbol) to plot the short-run industry supply curve when there are 15 firms. Finally, use the green points (triangle symbol) to plot the short-run industry supply curve when there are 20 firms. PRICE (Dollars per pound) 100 90 80 70 80 50 40 30 20 10 0 0 125 250 375 500 825 750 875 1000 1125 1250 QUANTITY (Thousands of pounds) Demand Because you know that competitive firms earn Supply (10 firms) True Supply (15 firms) If there were 10 firms in this market, the short-run equilibrium price of rhodium would be $ would . Therefore, in the long run, firms would False Supply (20 firms) per pound. From the graph, you can see that this means there will be ? per pound. At that price,…