AgK rents out computing services to agricultural producers. The charge a fixed rental payment for the right to unlimited computing at a rate of P USD per minute. There are two types of potential users: 100 farmers and 100 ranchers. Each farmer demand is given by Qf = 20 - Pf, and each rancher's demand is given by Qr = 25 - Pr, where Q is in 1000 minutes per month and P is in USD per minutes. The marginal cost is 5 USD per minute. Suppose that you could separate farmers and ranchers. For ranchers, the optimal rental fee is   A) 5   B) 200,000   C) 500   D) 0

Q: Exercise 2.7 (P&R, chap. 8, p. 326: Exercise12) A number of stores offer film developing as a…

A: The term "long run equilibrium" describes an equilibrium attained over a considerable amount of…

Q: why is it not firm 1 will charge a larger percentage markup over its cost than firm 2? according to…

A: The amount by which a business raises the price of a good or service over its cost of production is…

Q: uppose Bedox is a patent drug for man’s beauty. Her manufacturer faces a market demand for Bedox of…

A: The profit is maximized where the Marginal Revenue is equal to the Marginal cost. or  MR = MC.

Q: n order to maximize profits, you should carry    customers per load.

A: Marginal Cost- it is the cost of production of one additional unit produced. MCn= TCn-TCn-1 Average…

Q: A travel agency will plan a group tour for groups of size 35 or larger. If the group contains…

A: Given  Revenue function: R(x)=35+x280-10x            .... (1) Here x is the number of additional…

Q: Best Orange Juice Company is located in Oman. The cost function for total orange juice production…

A: From total cost function: MC = dC(q)/dx = 0.5x = 0.5xs + 0.5xm  [since x = xs + xm] In Muscat, from…

Q: a. b. If a firm's the price elasticity of demand (E) to be-3.5 and marginal cost (MC) is $15. Using…

A: The mark up refers to pricing where a firm charges fixed mark up over the marginal cost of…

Q: 2. Suppose the demand and marginal cost at a local golf course is given by: P = 200 - 4Q MC = $8.…

A: In two part tariff, good is sold at a per unit price equal to marginal cost along with an access fee…

Q: 6. Suppose that there are two identical firms in the silver mining industry. The cost curve of each…

A: Cartels, in an oligopoly, refer to an agreement in which two or more firms limit their production…

Q: In small collegetowns, it is not uncommon that the rental market is dominated by one or a handful…

A: In this monopolistic rental market, the equilibrium quantity and price can be found as…

Q: Discuss at least 1 pricing practice that is illegal or unethical

A: Mostly, different firms engage in competition to reach their targets, which enables the customers to…

Q: beer at the same price per can to all customers. The following graph shows the marginal cost (MC),…

A: A monopoly is a sole producer selling a good thus having maximum market power thus acting as a price…

Q: You run a game-day shuttle service for parking services for the local ball club. Suppose you are…

A: MC is the change in the TC when the number of customers changes by 1 unit. When the number of…

Q: Complete the following table showing the demand for snow skiing lessons per day. Do this by filling…

A: Total Revenue is the revenue which is calculate by price multiplied by quantity and the Average…

Q: A price-taking firm's variable cost function is C = Q3, where Q is the output per week. It has an…

A: Total revenue and profit: The demand function reflects the inverse relationship with the price of…

Q: Suppose there is a monopoly in a market with the cost function: TC = 2+Q. The demand function in…

A: A monopoly occurs when a firm lacks any viable competition and is the sole producer of the…

Q: Demand P (q)=500-2q Total Costs C(q)=10+20q . what is marginal cost marginal revenue of this demand…

A: Marginal cost is a cost that arises when firms produce one more unit and is calculated by…

Q: For a certain company, the cost function for producing a items is C(x) = 40 + 150 and the revenue…

A: Profit is the money you have left after paying for business expenses. In business usage, it is…

Q: In the long run period, a small number of firms produces the differentiated product "X" in a…

A: Q = 1350 - 45p p = 30 - (1/45) Q TC = 0.1q3 - 3q2 +40q

Q: Randall Cars repair Factory has the total Cost Function TC (Q) = 4₁1 Q¹+ 26/Qx+30 where Q stands for…

A:

Q: Suppose a producer can manufacture her smartphones at a constant marginal cost of $300. She…

A: Rule of thumb for pricing with an "incremental margin percentage"  Incremental margin percentage =…

Q: (d) What would To and 71 have to be set to, for the equilibrium quantitites to be Qo = 60, Q1 = 60?…

A: d. Profit for Type 0 car producers : Total Revenue-Tax- Total Cost

Q: Assume Standard Oil owns all the refineries in the US. What would be the price it would charge for…

A: The markets are the place where the interaction of the buyers and the sellers take place. In the…

Q: Network goods often have. high fixed high variable low average low fixed costs.

A: There are mainly two types of cost: 1. Fixed Cost  2. Variable Cost

Q: Northside Social (NS) sells cups of coffee and amazing breakfast sandwiches. The current price of a…

A: The firm sells 1000 units of cup of coffee and 200 units of breakfast sandwiches in the market at…

Q: The market demand function for the output in this market is given by: Q = 1848 - 2P If there are…

A: JointJuice is a prepackages supplement-producing firm. Suppose the firm produces prepackaged…

Q: Question…

A: Price discrimination refers to the process of charging different price for the same good in…

Q: Cost function of a monopolist is given by C=F +2Q where F stands for fixed cost. The monopolist will…

A: Profit= Total Revenue - Total Cost Total Cost= F +2Q  Total Revenue=Price×Quantity

Q: Given the following demand and cost functions: Demand: p = 3000 - 2x Cost: C = 1200x + 2600 Find the…

A: Profit is the difference between revenue and cost.  Revenue is the price multiply quantity…

Q: The demand equation for handcrafted violins by a certain violin maker can be approximated by p=20-x…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Teddy J is a manufacturer of dish washing liquid. If his monthly demand function for 750 ml size is…

A: Total revenue (TR) function can be obtained by using the following formula.

Q: A donut shp has a fixed cost of $92000 per day and a varibale cost of $2 for each donut produced. If…

A: Fixed cost per day is $92000 Variable cost for each donut is $2 Price for each donut is $5 For…

Q: Assume that Gas & Minerals is the only copper mining firm in Chile. The national demand for copper…

A: Monopoly refers to the market structure which has a single seller, selling the good that has no…