Suppose that total cost of vaccine production is the following: () = 20,000 + 2! where fixed
Fantastic news! We've Found the answer you've been seeking!
Question:
Suppose that total cost of vaccine production is the following:
() = 20,000 + 2!
where fixed cost is 20,000 and q denotes vaccine production. a. Find q where AC is minimized (and AC = MC). Graph AV and MC. b. Suppose that there are 4000 individuals with heterogenous preferences as some
are willing to pay more than others for a shot of vaccine. The number of individuals who want to be vaccinated depends, negatively, on the price of
vaccination as follows:
" =3000
If there is one producer (i.e., monopoly), then how many individuals will be
vaccinated? How much will the monopolist charge?
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
Posted Date: