subject
Business, 20.01.2020 18:31 fortforeman5

Samarium is a "rare-earth" element that is used to produce magnets with permanentmagnetization, drugs
for chemotherapy, control rods for nuclear reactors and aerospace equipment. it is costly to extract from
the ground, creates a lot of pollution when mined and refined. firms that produce samarium must plan
production in advance and production is relatively slow to adjust.
suppose:
• world demand for samarium is given by the inverse demand curve p =20,000 – 20 q, where q is in tons.
• the marginal cost to extract a ton of samarium is mc = 2000
(a) if samarium were supplied by a monopolist, what price would the monopolist charge?
(b) what would be the monopolist’s profit, consumer surplus and deadweight loss?
(c) if two identical firms supplied samarium, what would be the equilibrium? how much would each
firm produce? what would be the market clearing price?
(d) what would be the firms’ profits, the consumer surplus and the deadweight loss?
(e) briefly explain why your answer in (d) is the same or different than your answer in (b).
(f) finally, what would happen if one of firms (say firm b) faced a capacity constraint and could
produce, at most, q = 200. how much would firm a produce? what would be the equilibrium price?

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 19:30
How do primary and secondary industries differ
Answers: 1
question
Business, 21.06.2019 20:20
Aproduction order quantity problem has a daily demand rate = 10 and a daily production rate = 50. the production order quantity for this problem is approximately 612 units. what is the average inventory for this problem?
Answers: 1
question
Business, 22.06.2019 22:30
Schuepfer inc. bases its selling and administrative expense budget on budgeted unit sales. the sales budget shows 1,800 units are planned to be sold in march. the variable selling and administrative expense is $4.30 per unit. the budgeted fixed selling and administrative expense is $35,620 per month, which includes depreciation of $2,700 per month. the remainder of the fixed selling and administrative expense represents current cash flows. the cash disbursements for selling and administrative expenses on the march selling and administrative expense budget should be:
Answers: 1
question
Business, 23.06.2019 02:50
In the market for lock washers, a perfectly competitive market, the current equilibrium price is $5 per box. washer king, one of the many producers of washers, has a daily short-run total cost given by tc = 190 + 0.20q + 0.0025q2, where q measures boxes of washers. washer king's corresponding marginal cost is mc = 0.20 + 0.005q. how many boxes of washers should washer king produce per day to maximize profit?
Answers: 1
You know the right answer?
Samarium is a "rare-earth" element that is used to produce magnets with permanentmagnetization, drug...
Questions
question
Mathematics, 02.11.2020 14:00
question
Mathematics, 02.11.2020 14:00
question
Mathematics, 02.11.2020 14:00
question
Advanced Placement (AP), 02.11.2020 14:00
question
Mathematics, 02.11.2020 14:00
question
Mathematics, 02.11.2020 14:00
question
Mathematics, 02.11.2020 14:00
question
Mathematics, 02.11.2020 14:00