In the market for organizing of extreme adventures and experiences the firm FTW is enjoying a...
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In the market for organizing of extreme adventures and experiences the firm FTW is enjoying a monopoly situation on exploring and climbing in cave systems. The demand for these types of activities has risen fast during the last couple of years. The demand curve can be illustrated as: D: P=75-3Q The marginal cost is given by: MC: P=5+2Q a. Assuming that FTW is a profit maximizing firm, draw a graph illustrating the monopoly situation the price and quantity FTW will chose to produce. Indicate CLEARLY which curve is which, equilibrium, intercepts and the deadweight loss (no need to calculate anything yet). (3p) b. Calculate the price that FTW will charge for their products and the quantity produced. (3 p) c. Calculate the consumer surplus (3 p) d. Calculate the producer surplus (3 p) e. Calculate the deadweight loss (3 p) f. What would have been the equilibrium price and quantity if this would have been a fully competitive market? (3 p) g. For the firm FTW how to determine what prices to charge for its products has changed. In the monopoly situation, FTW was a now in the competitive market, FTW is a . Fill in the missing words in the lined spaces IN YOUR ANSWER SHEET. (2p). In the market for organizing of extreme adventures and experiences the firm FTW is enjoying a monopoly situation on exploring and climbing in cave systems. The demand for these types of activities has risen fast during the last couple of years. The demand curve can be illustrated as: D: P=75-3Q The marginal cost is given by: MC: P=5+2Q a. Assuming that FTW is a profit maximizing firm, draw a graph illustrating the monopoly situation the price and quantity FTW will chose to produce. Indicate CLEARLY which curve is which, equilibrium, intercepts and the deadweight loss (no need to calculate anything yet). (3p) b. Calculate the price that FTW will charge for their products and the quantity produced. (3 p) c. Calculate the consumer surplus (3 p) d. Calculate the producer surplus (3 p) e. Calculate the deadweight loss (3 p) f. What would have been the equilibrium price and quantity if this would have been a fully competitive market? (3 p) g. For the firm FTW how to determine what prices to charge for its products has changed. In the monopoly situation, FTW was a now in the competitive market, FTW is a . Fill in the missing words in the lined spaces IN YOUR ANSWER SHEET. (2p).
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International Marketing And Export Management
ISBN: 9781292016924
8th Edition
Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr
Posted Date:
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