Business, 25.11.2021 08:00 hailey200127

The residents of Flint, Michigan, consume clean water according to the demand function D(p) = 1000 - p, where p is a price of a bottle of clean water and D (p) is the number of bottles per year. The only distributor of the clean water in Flint is Clean Water Inc., which purchases water from H2O Ltd. at c dollars per bottle. The company H2O Ltd. is the only supplier of clean water in the area and acts as a profit-maximizing monopolist. Assume that the cost of production of clean water for H2O Ltd. is zero. (a) What is the equilibrium price per water bottle charged by Clean Water Inc.?
(b) What is the equilibrium quantity sold by Clean Water Inc.?
(c) What is the equilibrium price per water bottle charged by H:0 Ltd. (find c)?
(d) What is the equilibrium quantity of water bottles supplied by H, Ltd.?
(e) What are the profits of Clean Water, Inc.?
(g) What is the consumer's surplus generated in the market?
(h) What are the profits of H. Ltd.?
(i) Suppose H, O acquires Clean Water, Inc. What would be the new equilibrium price and quantity of water bottles?
(j) What are the profits of the new integrated firm?

Answers: 2

Show answers

Other questions on the subject: Business

Business, 21.06.2019 21:30, kay4358

What are the main advantages and disadvantages of organizing a firm as a c corporation? the advantages are: (select all the choices that apply.) a. there is no limit on the number of owners a c corporation may have, thus allowing the corporation to raise substantial amounts of capital. b. the life of the business can continue beyond the death of any of the owners. c. the corporation can use the assets of the owners to pay for corporate liabilities. this attracts smaller investors to the corporation. d. the liability of the owners is limited to the amount of their investment in the firm. the disadvantages are: (select all the choices that apply.) a. income to a c corporation is subject to double taxation, once at the corporate level and again when received by the owners in the form of a dividend. b. the life of the business usually ends with the death of any of the owners. c. the c corporation is more complicated and more expensive to set up than other business entities. d. corporate liabilities can be passed on to the share

Answers: 1

continue

Business, 22.06.2019 19:00, FoxGirl1971

1. regarding general guidelines for the preparation of successful soups, which of the following statements is true? a. thick soups made with starchy vegetables may thin during storage. b. soups should be seasoned throughout the cooking process. c. finish a cream soup well before serving it to moderate the flavor. d. consommés take quite a long time to cool.

Answers: 2

continue

Business, 22.06.2019 20:00, enriqueliz1680

Beranek corp has $720,000 of assets, and it uses no debt--it is financed only with common equity. the new cfo wants to employ enough debt to raise the debt/assets ratio to 40%, using the proceeds from borrowing to buy back common stock at its book value. how much must the firm borrow to achieve the target debt ratio? a. $273,600b. $288,000c. $302,400d. $317,520e. $333,396

Answers: 3

continue

Business, 22.06.2019 20:40, lulustar13

David consumes two things: gasoline (g) and bread (b). david's utility function is u(g, b) = 10g^0.25 b^0.75. use the lagrange technique to solve for david's optimal choices of gasoline and bread as a function of the price of gasoline, p_g, the price of bread, p_b, and his income m. with recent decrease in the price of gasoline (maybe due to external shock such as shale gas production) does david increase his consumption of gasoline? for david, how does partial differential g/partial differential p_g depend on his income m? that is, how does david's change in gasoline consumption due to an increase in the price of gasoline depend on his income level? to answer these questions, find the cross-partial derivative, |partial differential^2 g/partial differential m partial differential p_g.

Answers: 1

continue

You know the right answer?

The residents of Flint, Michigan, consume clean water according to the demand function D(p) = 1000 -...