Assignment Details:
One firm has the entire market for potato crops that are salted and pepper flavor flavored. It produces at average and marginal cost costs of AC=MC=10. Originally the firm faces a market demand curve of Q=60-P. a)Calculate the profit-maximizing price and quantity combination for the firm. What are the firm profit. b)Assume that the market demand become steeper and is given by Q=45-5P.What are the firm profits? c)Say the market demand becomes flatter and is given by Q=100-2P. What is the farm profit-maximizing price quantity now?. d) Graph the three different situation situations and explain why there is no supply curve for monopoly. 1. Suppose that the Kenya demand for aluminum is given by the equation Qd=500p+10i where p is the price for aluminum expressed n shillings er kilogram and I is the average income er person in Kenya (in thousands of shillings per year). Average income s an important determinant for the demand for the automobiles and other products that use aluminum and hence is a determinant or the demand for aluminum itself. further, suppose that Kenya. Supply for the aluminum (when p is greater or equal to8) is given by the equation As=-400+50p. In both the demand and supply functions equation quantity is measured in millions of kilograms of aluminum per year. 1. What is the market equilibrium price of aluminum when i=10 ( I.e. kshs. 10000 per year).
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