Amonopolist’s cost function yields constant average and marginal costs, with ac = mc = 5. the firm faces a market demand curve given by p = 29 – q.
a) calculate the marginal revenue curve, mr, for the monopoly.
b) solve for the monopolist’s profit maximizing output and price and calculate the lerner’s index and the profit of the monopolist. show the profit maximizing decision of the monopolist and the profits earned diagrammatically.
c) what would be the socially optimal output and price? (hint: this would be the output and price if the industry were perfectly competitive. that is, the profit maximizing rule would be p =mc)
d) show diagrammatically the social cost of a monopoly.{extra credit: calculate the social cost of monopoly.}

Big trail running company has started to produce running apparel in addition to the trail running shoes that they have manufactured for years. they feel that a departmental overhead rate would best reflect their overall manufacturing overhead usage. based on research the following information was gathered for the upcoming year: machining department finishing department estimated manufacturing overhead by department $ 600 comma 000 $ 400 comma 000 trail running shoes 440 comma 000 machine hours 11 comma 000 direct labor hours running apparel 60 comma 000 machine hours 39 comma 000 direct labor hours manufacturing overhead is driven by machine hours for the machining department and direct labor hours for the finishing department. at the end of the year, the following information was gathered related to the production of the trail running shoes and running apparel: machining department finishing department trail running shoes 442 comma 000 hours 10 comma 500 hours running apparel 57 comma 000 hours 40 comma 000 hours how much manufacturing overhead will be allocated to the trail running shoes

Ben collins plans to buy a house for $166,000. if the real estate in his area is expected to increase in value by 2 percent each year, what will its approximate value be five years from now?

You plan to invest some money in a bank account. which of the following banks provides you with the highest effective rate of interest? hint: perhaps this problem requires some calculations. bank 1; 6.1% with annual compounding. bank 2; 6.0% with monthly compounding. bank 3; 6.0% with annual compounding. bank 4; 6.0% with quarterly compounding. bank 5; 6.0% with daily (365-day) compounding.