Market demand is given by the equationQ-84-P. What is the equation for Marginal
ID: 1113360 • Letter: M
Question
Market demand is given by the equationQ-84-P. What is the equation for Marginal Revenue for the monopolist? a) MR -84- b) MR -112-0 c) MR-84-0 d) MR-112-0 L1Q If Demand is given by Q-901P and Supply is given byg- 1 P,the cquilibim quantity sold is: a) 300 b) 3600 c) 675 d) 1200 17.HAC-500, q 180, and FC -3060, what is Average Variable Cost? a) 17 b) 483 c) 86,940 d) 90,000 18. If the Income Elasticity of X is-1.002, then X is a... a) Luxury b) Necessity c) Neutral Good Inferior Good 19. Dan is the manager of a restaurant. Because there are many restaurants, but each one is different, his market can be characterized as being monopolistically competitive. If the restaurant faces a daily cost function of C-945+5q where MC -5, and the price of a single meal is $20, in the Long Run how many meals per day will Dan's staff have to serve? a) 47.25 b) 84 c) 64 d) 63Explanation / Answer
15) The correct choice is d
Explanation : - Q = 84 - 0.75p
0.75p = 84 - q
P = 112 - 1.33 Q
Revenue = Price x quantity sold
Revenue = (112 - 1.33 Q)Q
Marginal revenue = 112 - 2.66Q
MR = 112 - 8/3Q
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16) The correct choice is a
The equilibrium quantity is found by equating demand and supply
900 - 0.5p = 0.25p
Equilibrium price = $ 1200
Equilibrium quantity = 300 units
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17) The correct choice is b
Average cost = Average fixed cost + average variable cost
500 = 3060 /180 + AVC
AVC = 483
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18) The correct choice is b
Explanation : - A good that has a negative income elasticity of demand is known as inferior good. The demand for such good decreases as income increases.
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