#2 200:58:17McGrawHillAphria Corporation, a cannabis producer, is producing 35 units of output. Aphria Corporation is selling this output in aperfectly competitive market at $20 per unit. On the assumption its TFC are $150 and its AVC is $12 at 35 units of output.Aphria corporationMultiple Choiceis realizing an economic profit of $280.is realizing an economic profit loss of $50.is realizing an economic Profit of $130.is maximizing its profits.should close down in the short run.< Prev2 of 32HHNext >Sub

Economic profit is the difference between the revenue obtained from the sales of products or…

Ohria Corporation, a cannabis producer, is producing 35 units of output. Aphria Corporation is selling this output in a erfectly competitive market at $20 per unit. On the assumption its TFC are $150 and its AVC is $12 at 35 units of output. phria corporation Multiple Choice is realizing an economic profit of $280. is realizing an economic profit loss of $50. is realizing an economic Profit of $130. is maximizing its profits. should close down in the short run. < Prev 2 of 32 www H Next >

Ohria Corporation, a cannabis producer, is producing 35 units of output. Aphria Corporation is selling this output in a erfectly competitive market at $20 per unit. On the assumption its TFC are $150 and its AVC is $12 at 35 units of output. phria corporation Multiple Choice is realizing an economic profit of $280. is realizing an economic profit loss of $50. is realizing an economic Profit of $130. is maximizing its profits. should close down in the short run. < Prev 2 of 32 www H Next >

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter11: Price And Output Determination: Monopoly And Dominant Firms

Section: Chapter Questions

Problem 2E: Ajax Cleaning Products is a medium-sized firm operating in an industry dominated by one large...

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A large share of the world supply of diamondscomes from Russia and South Africa. Suppose thatthe marginal cost of mining diamonds is constant at$1,000 per diamond and the demand for diamonds isdescribed by the following schedule:Price Quantity$8,000 5,000 diamonds7,000 6,0006,000 7,0005,000 8,0004,000 9,0003,000 10,0002,000 11,0001,000 12,000a. If there were many suppliers of diamonds, whatwould be the price and quantity?b. If there were only one supplier of diamonds, whatwould be the price and quantity?c. If Russia and South Africa formed a cartel, whatwould be the price and quantity? If the countriessplit the market evenly, what would be SouthAfrica’s production and profit? What wouldhappen to South Africa’s profit if it increased itsproduction by 1,000 while Russia stuck to thecartel agreement?d. Use your answers to part (c) to explain why cartelagreements are often not successful.
A risk-neutral monopoly must set output before it knows the market price. There is a 50 percent chance the firm's demand curve will be P=20-Q and a 50 percent chance it will be P = 40 - Q. The marginal cost of the firm is MC- Q. The expected profit-maximizing quantity is Multiple Choice O 5 10 15. 20. 29 a a HA
2. Acme Pharmaceutical Company discovers a vaccine that prevents the common cold and has a patent that grants it a monopoly on this drug. Acme has plants in both the North America and Europe and can manufacture the drug on either continent at a marginal cost of $10. Assume there are no fixed costs. In Europe, the demand for the drug is QE = 70 PE, where QE is the quantity demanded when the price in Europe is PE. In North America the demand for the drug is QN = 110 - PN, where QN is the quantity demanded when the price in North America is PN (a) Determine the aggregate demand function for the combined mar- ket. Determine the inverse demand function for the combined market and the inverse demand functions for each of the two mar- kets separately. (b) To begin, assume that it is illegal for the firm to price discriminate, so that it can charge only a single price P on both continents. What price will it charge, and what profits will it earn?
You own Athleticon, which manufactures athletic wear. Your new contract with Atlanta United, a professional soccer team, allows Athleticon to be the sole suppler of athletic wear with the “Atlanta United” logo. No one lese can manufacture athletic wear with the “Atlanta United” logo. What do you think will be Athleticon’s level of profitability on the sale of “Atlanta United” athletic wear? Explain why. Your contract with Atlanta United only lasts 3 years. It was not renewed. Other firms can now manufacture athletic wear with the “Atlanta United” logo It is now 5 years after your contract with Atlanta United was terminated. Any manufacturer that wants to can manufacture and sell athletic wear with the “Atlanta United” logo. What do you think will be the level of profitability and rate of return on manufacturing athletic wear with the “Atlanta United” logo? Explain why.
The information in the table shows the total demand for water service in Takoma. Assume that there are two companies operating in Takoma. Each company that provides these services incurs an annual fixed cost of $400 and that the marginal cost of providing the service to each customer is exactly $2.00. Figures listed are for an annual service contract. Quantity 0 100 200 300 400 500 600 700 800 900 1000 1100 1200 Price 60 55 50 45 40 35 30 25 b. Refer to Table 17-36. Suppose these 2 firms are price competing with each other (as what happens in a perfectly competitive market). What would total output be? a. 0 21250 1200
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Lefola Limited is the only manufacturer of product G_Easy in the Popa Land. It has provided documented levels of demand at certain selling prices for product G_Easy which are as follows: Price per unit Demand Units Total costs 7 000 0 3 000 6 000 1 5 000 5 000 2 8 000 4 000 3 12 000 3 000 4 17 000 2 000 5 23 000 1 000 6 30 000 Required: Using a tabular approach, calculate the marginal revenues and marginal costs for product G_Easy at the different levels of demand, and so determine the selling price at which Lefola Limited’s profits are maximized.
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local business that provides trash service for rural households has asked you to provide some advice on their pricing and production decisions. Since no other trash companies service this area, you believe they function as a monopoly. Price Quantity TC $1,000 0 $500 $800 5 $1,200 $600 10 $3,100 $400 15 $7,000 $200 20 $11,500 If they maximize their profits, what price will they charge? Question 18 options: $600 $200 $800 $400