If a monopolist produces qunits, she can charge 400 4q dollars per unit. The variable cost
Question:
If a monopolist produces qunits, she can charge 400 – 4q dollars per unit. The variable cost is $60 per unit.
a. How can the monopolist maximize her profit?
b. If the monopolist must pay a sales tax of 5% of the selling price per unit, will she increase or decrease production (relative to the situation with no sales tax)?
c. Continuing part b, use SolverTable to see how a change in the sales tax affects the optimal solution. Let the sales tax vary from 0% to 8% in increments of 0.5%.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 88% (9 reviews)
Part a Monopolist pricing Costs Variable ...View the full answer
Answered By
Ashington Waweru
I am a lecturer, research writer and also a qualified financial analyst and accountant. I am qualified and articulate in many disciplines including English, Accounting, Finance, Quantitative spreadsheet analysis, Economics, and Statistics. I am an expert with sixteen years of experience in online industry-related work. I have a master's in business administration and a bachelor’s degree in education, accounting, and economics options.
I am a writer and proofreading expert with sixteen years of experience in online writing, proofreading, and text editing. I have vast knowledge and experience in writing techniques and styles such as APA, ASA, MLA, Chicago, Turabian, IEEE, and many others.
I am also an online blogger and research writer with sixteen years of writing and proofreading articles and reports. I have written many scripts and articles for blogs, and I also specialize in search engine
I have sixteen years of experience in Excel data entry, Excel data analysis, R-studio quantitative analysis, SPSS quantitative analysis, research writing, and proofreading articles and reports. I will deliver the highest quality online and offline Excel, R, SPSS, and other spreadsheet solutions within your operational deadlines. I have also compiled many original Excel quantitative and text spreadsheets which solve client’s problems in my research writing career.
I have extensive enterprise resource planning accounting, financial modeling, financial reporting, and company analysis: customer relationship management, enterprise resource planning, financial accounting projects, and corporate finance.
I am articulate in psychology, engineering, nursing, counseling, project management, accounting, finance, quantitative spreadsheet analysis, statistical and economic analysis, among many other industry fields and academic disciplines. I work to solve problems and provide accurate and credible solutions and research reports in all industries in the global economy.
I have taught and conducted masters and Ph.D. thesis research for specialists in Quantitative finance, Financial Accounting, Actuarial science, Macroeconomics, Microeconomics, Risk Management, Managerial Economics, Engineering Economics, Financial economics, Taxation and many other disciplines including water engineering, psychology, e-commerce, mechanical engineering, leadership and many others.
I have developed many courses on online websites like Teachable and Thinkific. I also developed an accounting reporting automation software project for Utafiti sacco located at ILRI Uthiru Kenya when I was working there in year 2001.
I am a mature, self-motivated worker who delivers high-quality, on-time reports which solve client’s problems accurately.
I have written many academic and professional industry research papers and tutored many clients from college to university undergraduate, master's and Ph.D. students, and corporate professionals. I anticipate your hiring me.
I know I will deliver the highest quality work you will find anywhere to award me your project work. Please note that I am looking for a long-term work relationship with you. I look forward to you delivering the best service to you.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Practical Management Science
ISBN: 978-1305250901
5th edition
Authors: Wayne L. Winston, Christian Albright
Question Posted:
Students also viewed these Business questions
-
A monopolist produces a single homogeneous good, which she sells in two distinct markets between which price discrimination is possible. Her total cost function is: TC = 1/3 Q3 7.5Q2 + 370Q + 100....
-
A monopolist produces a good with constant marginal cost equal to c, c < 1. Assume for now that all consumers have the demand Q (p) = 1 - p. The population is of size 1. 1. Suppose that the...
-
Suppose that the demand curve for a product x provided by a monopolist is given by p = 90x and suppose further that the monopolists marginal cost curve is given by MC = x. A: In this part, we will...
-
Find the lengths of the curves. x = 5 cos t - cos 5t, y = 5 sin t - sin 5t, 0 t /2
-
Find the frequency of green light with a wavelength of 555 nm.
-
San Diego Sheet Metal, Inc. incurs a variable cost of $40 per pound for raw material to produce a special alloy used in manufacturing aircraft. Required: 1. Draw a graph of the firms raw material...
-
Describe the major components of the C-MER value creation model.
-
We are evaluating a project that costs $924,000, has an eight-year life, and has no salvage value . Assume that depreciation is straight-line to zero over the life of the project. Sales are projected...
-
6. A jellyfish is floating in a water-filled aquarium 1.00 m behind a flat plane of glass 6.00 cm thick and having an index of refraction of 1.50. a. Where is the image of the jellyfish located? b....
-
Kyle, a single taxpayer, worked as a freelance software engineer for the first three months of 2021. During that time, he earned $72,000 of self- employment income. On April 1, 2021, Kyle took a job...
-
It costs a company $12 to purchase an hour of labor and $15 to purchase an hour of capital. If L hours of labor and K units of capital are available, then 0.05L 2/3 K 1/3 machines can be produced....
-
A company produces widgets at plants 1 and 2. It costs 125x 1/2 dollars to produce x units at plant 1 and 235x 1/3 dollars to produce x units at plant 2. Each plant can produce up to 500 units. Each...
-
The Hourly Parking Garage at BWI International Airport in Baltimore costs $2 per half hour during the first hour and $4 for each hour or part of an hour for more than 1 hour and up to 5 hours. If C =...
-
Which of the following trusts is a top-hat plan? A. ERISA trust. B. Grantor trust. C. Rabbi trust. D. Secular trust.
-
Which of the following is not correct regarding a Coverdell ESA? A. Account earnings are income tax-free if the funds are used for qualified education expenses. B. Contributions are considered to be...
-
Susan Adamss marginal tax rate is 25 percent. She is contemplating the purchase of either a corporate bond that has a 3.5 percent coupon or a newly issued tax-exempt municipal bond paying2.5 percent....
-
A rare French cheese sells for 60.00 euros per pound. Assuming a very similar cheese in Wisconsin sells for $55.00 per pound, what is the exchange rate between the euro and the U.S. dollar according...
-
All of the following are required for a qualified employee stock purchase plan except: A. All eligible employees must be allowed to participate in the plan. B. An employee may not purchase more than...
-
A function is given by a table of values, a graph, a formula, or a verbal description. Determine whether it is one-to-one. g(x) = 1 sin x
-
On October 1, 2021, Adoll Company acquired 2,600 shares of its $1 par value stock for $38 per share and held these shares in treasury. On March 1, 2023, Adoll resold all the treasury shares for $34...
-
Crown Corporation is an accrual method taxpayer owned 55% by Brett and 45% by Susie. Brett and Susie are good friends and have been business associates for several years. BJ Partnership is a cash...
-
On April 1 of the current year, Henry borrows $12,000 from the bank for a year. Because the note is discounted for the interest charge and Henry receives proceeds of $10,200, he is required to repay...
-
During 2017, Doug incurs the following deductible expenses: $2,300 in state income taxes, $3,000 in local property taxes, $800 in medical expenses, and $2,000 in charitable contributions. Doug is 33,...
-
Analyze key change management principles. The organization is having difficulties and frustration regarding outdated technology. Explain the purpose and discipline of change management. Outline a...
-
Organizational chart (project team) for renovating Santa Rita group home , Responsibility matrix Work Breakdown Structure, Communications plan, Project charter and Detailed explanations explaining...
-
1. What is the importance of keeping in mind the risks associated with collaborations? 2. Why is it crucial to assess the strategic importance of existing relationships? 3. What should an...
Study smarter with the SolutionInn App