Suppose that a price-searcher firm was going to use a first degree price discrimination strategy. The demand for their product is given by: QD= 205 -0.5P. The firm has a constant marginal cost of $68.00 per unit. Calculate the producer surplus the firm would earn from this strategy.

The average consumer at a firm with market power has an inverse demand function of P = 9 − Q . The firm's total cost function is C = 3Q. If the firm engages in two-part pricing, what is the optimal fixed fee to charge each consumer?   Multiple Choice $2 $18 $25 $10

The market demand function for birthday cards in Greenwich Village is: P = 100 − 10Q. The total cost function for producing birthday cards is:  C= 60 + 20q. Suppose that a firm can perfectly price discriminate (i.e. conduct first-degree price discrimination). How much will its profits be? Please explian

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.)

Yongling is a monopoly seller of a good in a town. She has a fixed supply of 8 units and no other costs. The market demand curve for the product is P = 20-q. What is her profit if she sells to all her clients at the same price?

Suppose that Noah and Naomi have a monopoly in the garden bench market. Their weekly demand is D(P) = 500 - 4P. What is the inverse demand function

A city in a developing country does not have a provider of water and sanitation services, leading to poor health outcomes for its citizens. A firm is considering entering thatmarket. The cost curve is C(g) = 10 + 2q, and the inverse demand is P(g) = 10-q. Thegovernment of that city knows that, because of the high fixed cost to operate in this market, any entrant is likely to become a monopolist. Thus, they decide to implement the following regulation: the firm is not allowed to choose a price above an upper limit of p (which the government chooses and sets in the law before the firm decides to enter).There will be no transfers between the government and the firm.Assume that the firm only enters the market if it can get profits of at least zero, given the government's choice of p. Suppose that the government's goal is to maximize consumer surplus. Which of the following statements is the most correct? The government needs to set p = 2, because it's the marginal cost. That eliminatesthe…

Consider a monopoly with inverse demand given by P(q)=a-bq and cost function c(q)=cq, where a>c>0 and b>0 are parameters, and q is the quantity supplied by the monopoly. Find the monopoly’s profit-maximizing price and output, and calculate the output and the welfare loss compared to the competitive outcome.

Suppose a firm faces an identical inverse demand curve of p = 100 - q for each consumer in the market. Currently, the firm's average cost = marginal cost = $40. Determine the profit-maximizing price and identical lump-sum fee to charge with a two-part tariff. The profit-maximizing price to charge is $ (Enter a numeric response using a real number rounded to two decimal places.)

A firm charges different prices, P1 and P2, for its domestic and industrial customers. The corresponding demand functions are P1 = 125 - 2Q1; and P2 = 310 - 3Q2. The total cost function is TC = 2000 + 30Q. Determine the value of Q, sum of Q1 and Q2, that maximizes profit with price discrimination. Note: Round to 1 decimal place (type the value with no additional text or explanation).