Consider a firm, Shamrock Ink, that has some monopoly power in the market for green ink pads. The demand for their green ink pads is P = 2500 – 2.5Q with an associated marginal revenue of MR= 2500 – 5Q. Where thousands of ink pads. Their marginal cost of producing green ink pads is MC = is 20Q. In order to maximize profit, Shamrock Ink should produce thousand ink pads and charge a price of $ (Round answers to two decimals if necessary.)

Consider the following problem: Demand: q = 100-p Retailer: marginal cost of selling r = 10 per unit Manufacturer: marginal cost of producing = 40 per unit Neither firm faces any competitor Suppose now that the retailer and the manufacturer are separate firms.   Write down the profit function of the manufacturer if it sells to the retailer at w. You solved for the quantity the manufacturer will sell a minute ago, so you can use that in the profit function, and then you will have a profit function for the manufacturer that does not have p, but only has w in it. Solve for the optimal w for the manufacturer to charge and calculate the quantitysold under that w.

CareRight Medical Company has invented and received a patent for a new drug to treat a rare and fatal disease. It charges $5,000 for a year’s supply of the drug. Critics claim that this amount is excessive, as it does not cost that much to produce. They believe the company is taking advantage of sick people. CareRight responds that they are losing money on this drug. The critics are right: It does not cost CareRight $5,000 to produce a year’s supply for one person. However, CareRight’s statement is also correct in that they are losing money on the drug. How can both statements be true? Consider the different types of costs in your answer.

Imagine that the cell-phone market is made up of one large firm that leads the industry and sets its own price first, while smaller firms in the industry follow. There are 20 such smaller firms, each with a supply function of q; = 67.50 + for i = 1,2, ..., 20 firms, while pis the per-unit price. Total market demand for cell phones is given by the function Q = 6, 700.00 – p. If the cost function for the leading firm is CL(qL) = 109L, calculate the following values: %3D Leading firm's production: q1 = (Round to two decimals if necessary.) Total follower firm production: qF = (Round to two decimals if necessary.) Equilibrium price: p = $ (Round to two decimals if necessary.)

You are managing a firm with market power, and you think the price elasticity of demand for your product is between 1.3 and 1.5. You estimate that your marginal cost is between $55 and $70. The price that you should set would range between $ and $. (Round your answers to two decimal places.) If you refine your estimate of the marginal cost to $80, the price you should set would now range between $ and $ (Round your answers to two decimal places.)

Cindy's demand function for her legal services is given by the equation Q = 5000 - 20P, where Q represents the number of 1-hour sessions per year and P represents the price of each session. Her marginal revenue function is MR = 250 - 0.01Q. Cindys operation has no fixed costs, but she incurs a cost of $500 per session ( going to the clients house). What is Cindys yearly profit?

Suppose Ring Dental is the single supplier at HRM region provide the dental service and has a market demand curve Q = 40 – P; A total cost curve given by the formula: T C = 80 - 20Q + 2Q2 Find the profit-maximizing quantity, price, and profit. Now, suppose Halifax Dental wishes to separate the market and target to two different groups of customers young and old customers, the average cost = marginal cost = 10 for both markets Young customers with elasticity = -5 and DA = 12000 - 65P Old customers with elasticity = -7 and DB = 12000 - 55P What is the profit if Halifax Dental sets the equal price for both markets? (use the average elasticity for equal price) What is the profit if Halifax Dental charges different prices for each market?

(b) Consider two firms, 1 and 2 , operating in a monopolistic competitive market. The cost functions of the firms are: TC_(1)=20+20 Q and TC_(2)=80+80Q, respectively. Would it be rational for both firms to compete in the world market, given the market demand curve of Q=100-P, and they have to bear a trade cost of $30 per unit? Explain with the help of a diagram. please give answer with compleete steps and diagram.

There are two firms, Firm 1 and Firm 2. The two firms’ products are viewed as identical by most consumers. The relevant cost functions are C(Q1) = 10 + 4Q1 and C(Q2) = 12 + 16Q2, and the market demand curve for product is given by P = 50 – 4Q. Instructions: Use no decimals. Use the average cost to calculate monopoly profits. Do not round values if used to complete other calculations. Complete the following table.   Q1 Q2 P Profits F1 Profits F2 Duopoly competition           Collusion

Based on market research, a film production company in Ectenia obtains the following information about the demand and production costs of its new DVD: Demand: P=1,200−10QP=1,200−10Q Total Revenue: TR=1,200Q−10Q2TR=1,200Q−10Q2 Marginal Revenue: MR=1,200−20QMR=1,200−20Q Marginal Cost: MC=300+10QMC=300+10Q   where QQ indicates the number of copies sold and PP is the price in Ectenian dollars.      Complete the following table by finding the price and quantity that maximize the company's profit and the price and quantity that maximize social welfare. Scenario Price Quantity (Dollars) (DVDs) Maximizes the company's profit     Maximizes social welfare       The deadweight loss from the monopoly is   .   Suppose, in addition to the foregoing costs, the director of the film has to be paid. The company is considering four options: I. A flat fee of 2,500 Ectenian dollars II. 50 percent of the profits III. 150 Ectenian dollars…