Economics
Assignment 7 Chapter 8 (Perfect Competition)
Output in Thousands of Selfie Sticks
Identify the Profit Maximizing Quantity for a price of $13 (Output in thousands). What is the profit or loss at this Price?
What is the Break-Even Price and Quantity for Selfie Sticks for the graph above?
What is the Minimum Price the firm above would except (what is the shutdown point) for selfie sticks?
Assignment 8 Chapter 9 (Monopoly)
Output in Thousands of Tennis Shoes
What is the profit maximizing quantity and price for the monopolist above?
How much profit is the firm earning at the profit maximizing point?
Assignment 9 Chapter 9 (Monopoly – Price discrimination and maximizing profit)
Given the average total cost of supplying a movie is $4.00 and the information below in the table, determine what price the movie theater would charge under 2 conditions:
(Hint: Calculate the profit by using this formula: Profit = (Price –ATC)*Q
Select 1 price to charge all three groups (. Keep in mind if you select a price above a groups Maximum willingness to pay, they do not attend the movie; for example if you choose $7, the only group that will attend are the 1250 Adults)
$5 $6 $7
Charging 3 different prices (Charge each group their willingness to Pay).
Type of Customer
Number in each market
Max Willing to Pay
Students
2000
$6.00
Adults
1250
$7.00
Seniors
750
$5.00
Assignment 10 Chapter 10 (Oligopoly and Monopolistic Competition)
Given the Payoff Matrix below, determine:
What is the solution to the game? (What price High, Medium, or Low will each charge?)
Does either business firm have a dominant strategy?
Moos
Quarks
High
Medium
Low
High
70,70
40,35
80,10
Medium
35,40
35,35
40,20
Low
10,80
20,40
25,25
