Questions from Managerial Economics

Q: You are the manager of a monopoly, and your analysts have

You are the manager of a monopoly, and your analysts have estimated your demand and costs functions as P = 300 − 3Q and C(Q) = 1,500 + 2Q2, respectively. a. What price–quantity combination maximizes y...

Q: You are the manager of a firm that produces a product according

You are the manager of a firm that produces a product according to the cost function C(qi) = 160 + 58qi − 6qi 2 + qi 3. Determine the short-run supply function if: a. You operate a perfectly competiti...

Q: The accompanying diagram shows the demand, marginal revenue, and marginal

The accompanying diagram shows the demand, marginal revenue, and marginal cost of a monopolist. a. Determine the profit-maximizing output and price. b. What price and output would prevail if this firm...

Q: You are the manager of a monopolistically competitive firm, and your

You are the manager of a monopolistically competitive firm, and your demand and cost functions are estimated as Q = 36 − 4P and C(Q) = 4 + 4Q + Q2. (LO1, LO3, LO5) a. Find the inverse demand function...

Q: Two firms compete in a market to sell a homogeneous product with

Two firms compete in a market to sell a homogeneous product with inverse demand function P = 600 − 3Q. Each firm produces at a constant marginal cost of $300 and has no fixed costs. Use this informati...

Q: Consider a homogeneous-product duopoly where each firm initially produces at

Consider a homogeneous-product duopoly where each firm initially produces at a constant marginal cost of $200 and there are no fixed costs. Determine what would happen to each firm’s equilibrium outpu...

Q: Determine whether each of the following scenarios best reflects features of Sweezy

Determine whether each of the following scenarios best reflects features of Sweezy, Cournot, Stackelberg, or Bertrand duopoly: a. Neither manager expects her own output decision to impact the other ma...

Q: Suppose a single firm produces all of the output in a contestable

Suppose a single firm produces all of the output in a contestable market. Analysts determine that the market inverse demand function is P = 150 − 2Q, and the firm’s cost function is C (Q) = 4Q. Determ...

Q: Ford executives announced that the company would extend its most dramatic consumer

Ford executives announced that the company would extend its most dramatic consumer incentive program in the company’s long history—the Ford Drive America Program. The program provides consumers with e...

Q: Suppose that the U.S. Congress passes legislation that imposes

Suppose that the U.S. Congress passes legislation that imposes a one-time lump-sum tariff on the product that a foreign firm exports to the United States. a. What happens to the foreign firm’s margina...