Consider the markets for butter (B) and margarine (M), where the demand curves are QDM =...

Consider the markets for butter (B) and margarine (M), where the demand curves are QDM = 20-2PM+PB and QDB = 60-6PB++4PM and the supply curves are QSM=2PM and QSB=3PB. Find the equilibrium prices and quantities for butter and margarine

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Rahul Sunny answered 6 months ago

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A monopoly firm faces two markets where the inverse demand curves are &nbs

A monopoly firm faces two markets where the inverse demand curves are Market A: PA =140 − 2.75QA, Market B: PB = 120 − QB. The firm operates a single plant where total cost is C = 20Q+0.25Q^2, and marginal cost is m = 20 + 0.5Q. Suppose the firm sets a single price for both markets. Using the information above, the profit maximizing price is $86.18 and the profit maximizing quantity is 53.37 units. Given this information, you determine...

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1. Consider a perfectly competitive market where the demand and supply curves are given by QD...

1. Consider a perfectly competitive market where the demand and supply curves are given by QD = 500 − P and QS = −100 + 2P , respectively. Suppose that the government decides to tax the producers by $60 per unit sold. (a) Determine the pre-tax and after-tax equilibrium price and quantity. (b) Determine the loss in net benefits due to the tax. (c)Determine the percentage of the tax burden that falls on the consumers.

Consider a perfectly competitive market in the short-run with the following demand and supply curves, where...

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Consider the market for butter in Saudi Arabia. The demand and supply relations are given as...

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Consider the market for butter in Dammam. The demand and supply relations are given as follows: Demand: QD = 300 - 2P + 2I Supply: Qs = 3P - 25PM - 25 Where I is the average income and P is the price of butter and PM is the price of milk. (a) Assume that I = 25 and PM=2. Calculate: Equilibrium price of butter (P): ________________ Equilibrium quantity of butter (Q):_________________ (b) If I =...

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