Economic short answer
2.a. To maximize profits, it is necessary to produce the quantity when the marginal revenue is higher than the marginal cost. In Q=8 the marginal revenue is higher than the marginal cost, from Q=9 the marginal revenue is lower than the marginal cost. Then the answer is Q=8.
2.b. The data represents a not perfectly competitive firm because the graph is not horizontal, but a downward-sloping demand curve (Piana).
4. A downward-sloping demand curve says that the final price of an article at a crescent quantity will decrease reducing the marginal revenue of the last produced article.
5. The two criteria are the cost structure and the price-quantity demand curve.
6. The monopoly that sells each unit of output at the same price to all customers is a single-price monopoly.
7. The price discrimination consists in the commercialization of similar goods and services at different prices in different markets by the same firm. The price discrimination is based on the willingness to pay and the elasticity of the demand. One example is the commercialization of bottled water in two different presentations: glass water and plastic bottle water; the company may tag a higher price to the glass water than the plastic bottle water. The second example is the different price between a one-year subscription of an antivirus for first-time users and renovation subscriptions; both are the same service but with different marketing strategies.
8. The consumer surplus is the difference between the "willingness-to-pay" price of the good or service and the equilibrium price. An example is the price of food in a grocery store in front of the client's house, and the price of the food is a hypermarket three miles from the client's house. The consumer surplus will be higher in the grocery store than the hypermarket.
9.a. The output to maximize profit is two roses per hour.
9.b. 40 USD per rose.
9.c. Yes, after this point the marginal cost is higher than the marginal revenue.
10. The deregulation consists in the barriers elimination to the entrance of new participants in the offer or a product or service. The government must regulate a specific economic sector to protect consumer rights, quality or the environment conservation.
1. No, the ESs is used in cruise time. For the lift-off and landing, the pilot takes control of the airplane.
2. The information is stolen from bank data centers with viruses, Trojans, and cyber-attacks rather than a physical break-in.
Works Cited
Piana, Valentino. YOU ARE A MONOPOLIST. 31 December 2002. Web. 27 August 2016.
