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- A publisher faces the following demand schedule for the next novel from one of its popular authors:Price Quantity Demanded100 090 100,00080 200,00070 300,00060 400,00050 500,00040 600,000 530 700,00020 800,00010 900,0000 1,000,000The author is paid $2 million to write the book, and the marginal cost of publishing the book is aconstant $30 per book.a. Compute total revenue, total cost, and profit at each quantity. What quantity would a profitmaximizing publisher choose? What price would it charge? b. Compute marginal revenue. (Recall that MR=∆TR/∆Q.) How does marginal revenue compare tothe price? Explain. c. Graph the marginal-revenue, marginal-cost, and demand curves. At what quantity do themarginal-revenue and marginal-cost curves cross? What does this signify? d. In your graph, shade in the deadweight loss. Explain in words what this means. e. If the author was paid $3 million instead of $2 million to write the book, how would this affectthe publisher’s decision regarding the price…Some years ago. two intercity bus companies, Greyhound Lines, Inc. and Trailways Transportation System, wanted to merge. One possible definition of the market for this case was the market for intercity bus service. Another possible definition was the market for intercity transportation, including personal cars, car rentals, passenger trains, and commuter air flights.' Which definition do you think the bus companies preferred, and why?Is a monopolistically competitive firm productively efficient? Is it allocatively efficient? Why or why not?
- . Identify a local competitor in your country and discuss their advantages and limitations with respect to their product offerings.Art-tile operates in a market where there are a number of competitors and anyone could set up at operation like Art-tile by making the same initial financial commitment as Art. QM is the market demand for tiles and is described by the following demand curve; Tiles Workers AVC ATC MC TC Revenue 1000 10 8 20 8 22000 9000 2000 19 8 13.6 7.2 50000 18000 3000 27 7 11.2 6.4 93000 27000 4000 34 7 9.8 5.6 148000 36000 5000 41 7 9 5.6 217000 45000 6000 48 6 8.4 5.6 300000 54000 7000 58 7 8.3 8 418000 63000 8000 70 7 8.5 9.6 572000 72000 P = 40 - .0001QM What is the long run equilibrium price for the type of tiles that Art-tile produces? Why? How many companies will produce this type of tile in long run equilibrium?What is a company based in Nova Scotia that you think shoud begin selling its products in a country outside of North America? who are some current competitors in that country and their marketing efforts.
- Graph shows the cost and revenue information for Shitotsu the monopolist. What are the levels of price, output, total (sales) revenue. and total profits if the monopolist were to produce at the positions (a) through (d) indicated in table below? Costs and revenues 30 27 24 21 18 15 9 6 3 0 3 6 9 12 15 Quantity per period 18 21 MR D=AR MC AC1 The graph below shows the demand and marginal cost curves for the monopolist Mr. Peanut. a. Draw the marginal revenue curve. Plot only the endpoints of the graph below. Costs and revenues 55 50 45 40 35 30 25 20 15 10 5 0 10 20 30 40 50 60 70 80 90 100110 Quantity per period D MC Tools marginal rever ResetYou own Athleticon, which manufactures athletic wear. Your new contract with Atlanta United, a professional soccer team, allows Athleticon to be the sole suppler of athletic wear with the “Atlanta United” logo. No one lese can manufacture athletic wear with the “Atlanta United” logo. What do you think will be Athleticon’s level of profitability on the sale of “Atlanta United” athletic wear? Explain why. Your contract with Atlanta United only lasts 3 years. It was not renewed. Other firms can now manufacture athletic wear with the “Atlanta United” logo It is now 5 years after your contract with Atlanta United was terminated. Any manufacturer that wants to can manufacture and sell athletic wear with the “Atlanta United” logo. What do you think will be the level of profitability and rate of return on manufacturing athletic wear with the “Atlanta United” logo? Explain why.
- is behavior in which resources are expended to protect a monopoly position. A. Competition O B. Price discrimination C. Rent seeking D. Product differentiationThe growing integration of the world econemy is Select one a. Increasing the intensity of competition in a widu range of manufacturing and service industrim b. increasing the intensity of competition in manutacturing industries, and decrpasing the mtensity of compotition in services c. narrowing the scope of competition in a wide ringe of service, commodity and manutacturing industries d. decreasing the ntensity of competbon in manufactring industries, nd mosing the intenity of competition in services9. Do you agree or disagree with the following statements a. The demand eurve facing a monopolistic competitor in a market where all producers charge different prices becomes less elastic when it engages in international trade b. According to the gravity equation, countries closer to each other trade more c. The only gain from trade in monopolistic competition in trade is lower prices d. The closer to 1 the index of intra industry trade is, the greater the difference between exports and imports of the same goods.