MANAGERIAL ECON.+BUS.STRATEGY (LOOSE)
9th Edition
ISBN: 9781259896422
Author: Baye
Publisher: MCG
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Question
Chapter 11, Problem 2CACQ
(A)
To determine
The firm's optimal price , output and profits when the same unit price is charged to all customers is to be calculated.
(B)
To determine
The firm's optimal price, quantity and profit under first degree
(C)
To determine
Optimal price , output and profit in case of two part pricing is to be ascertained.
(D)
To determine
Firm's optimal price, output and profit in case of block pricing is to be calculated.
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You are the manager of a monopolistically competitive firm, and your demand and cost functions are given by Q = 36 − 4P and C(Q) = 4 + 4Q + Q2a. Find the inverse demand function for your firm’s product. b. Determine the profit-maximizing price and level of production. c. Calculate your firm’s maximum profits. d. What long-run adjustments should you expect? Explain
You are the manager of a monopolistically competitive firm, and your demand and cost functions are given by Q = 36 – 4P and C(Q) = 4 + 4Q + Q2.
a. Find the inverse demand function for your firm’s product.
b. Determine the profit-maximizing price and level of production.
c. Calculate your firm’s maximum profits.
d. What long-term adjustments should you expect? Explain.
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Is this firm operating in the short-run or long-run? How do you know?
Calculate this firm’s accounting profit.
From the diagram, what is the productively efficient output for this firm?
From the diagram, economies of scale are maximized at which output level? Explain.
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Chapter 11 Solutions
MANAGERIAL ECON.+BUS.STRATEGY (LOOSE)
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