ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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suppose a firms patent expires in this case the market
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- (A) Suppose that the two firms merge. Write down the profit function of the merged firm. Calculate the profit maximizing level of output, the amount of pollution for the merged firm, and its profit. Is the merger Pareto improvement? Why or why not? (B) Suppose that the merger is forbidden by the government. Instead, now the fishery has the property right to water. In other words, anybody who wants to pollute the water needs to buy a pollution right from the fishery. Let the price of the pollution right be Px. Write down the steel mill’s new profit function and the fishery’s new profit function. (C) Calculate the profit maximizing level of output for each firm, the amount of pollution, and the price of pollution right. please, please answer the three questions together..arrow_forwardA monopoly has the demand schedule p = 210 − 0.2q and the marginal cost schedule MC = 20 + 0.8q (a) If it can practise first-degree price discrimination how much should it sell? (b) If it can practise second-degree price discrimination and it has already made the decision to sell the first 100 units at a price of £190, what price should it charge for the rest of the units it sells?arrow_forwardWhich of the following is an element of the (supply chain )? a sourcing b manufacturing C distribution . d all of the abovearrow_forward
- The monthly demand function for a product sold by a monopoly is p=1960-1/3x2 dollars, and the average cost is c=1000+x2 + x2 dollars.production is limited to 1000 units and x is in hundred units. (a) Find the quanity (in hundreds of units) that will give maximum profits. (b) Find the maximum profit. (Round your answers to the nearest cent)arrow_forwardMost smartphones in the United States use Apple's IOS or Google's Android operating system. What market structure applies to the market for smartphone operating systems? Why?arrow_forwardA monopolist's demand curve is given as : q = 200-4p and the monopoly's cost function is given as C(q) = 20q. (a) Find the profit maximizing output, price and economic profit for this monopoly. (b) Explain if a monopoly is efficient or not with the help of a diagram.arrow_forward
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