Let C(q) 20 + 4q + 2q2 and demand P(Q) = 212 – 6Q a. Derive...

Let C(q) 20 + 4q + 2q2 and demand P(Q) = 212 – 6Q a. Derive the standard monopoly solution b. Derive monopoly profits as a function of the two kinds of taxes: solve for q as a function of the unit tax t and ad valorem tax a. Let t = 6.05 and let a = 0.1. Both taxes generate Q = 12.6 and a resulting consumer price of p = 136.4. Calculate i. Deadweight loss ii. Consumer surplus Producer surplus under the unit taxt Tax revenues under the unit tax t Producer surplus under the ad valorem tax a and compare to undert vi. Tax revenues under the ad valorem tax a and compare to under t

Expert Solution

Rahul Sunny answered 9 months ago

the demand is given by p= 140-4Q Where P is the price and Q is the...

the demand is given by p= 140-4Q Where P is the price and Q is the quantity demanded. Find the price at which the own price elasticity is -3. (round to 2 decimals)

Use the following inverse demand curve P=250-5Q and TC=$6Q+$2Q2 for the product basketballs. -In a competitive...

Use the following inverse demand curve P=250-5Q and TC=$6Q+$2Q2 for the product basketballs. -In a competitive market, what would be the equilibrium price, quantity, and profit? -With two firms in the market, what would be equilibrium price, quantity, and profit? -With a monopoloy present in the market, what would be equilibrium price, quantity, and profit?

If demand for the price searching-firm (e.g. monopoly) is q=20-p and total cost is 2+4q^2. A)Compute...

If demand for the price searching-firm (e.g. monopoly) is q=20-p and total cost is 2+4q^2. A)Compute the marginal revenue function. To check it what is marginal revenue from selling 4 units of output? B)What is the profit for this price searching firm?

Consider these curves: MC = 6Q AC = (50/Q) + 3Q Demand: P = 50 -...

Consider these curves: MC = 6Q AC = (50/Q) + 3Q Demand: P = 50 - 2Q MR = 50 - 4Q 1. For a monopolist, the profit-maximizing quantity will be ____. They will charge a price of ____ and make the profit ____. (Fill in blanks) 2. Graph the curves and label Qm, Price, and Profit 3. What quantity would maximize efficiency?

Suppose the demand of the good is P = 10 - Q. A monopolist's total cost is TC = 2 + 4Q.

Suppose the demand of the good is P = 10 - Q. A monopolist's total cost is TC = 2 + 4Q. What's the optimal price and quantity of the monopolist?calculate the monopolist's profit (or loss)also calculate the deadweight loss from monopoly

Consider the following two demand segments: 120−4Q = P and 100−4Q = P assuming there’s a...

Consider the following two demand segments: 120−4Q = P and 100−4Q = P assuming there’s a constant marginal cost to serving either group, C(Q) = 60Q. 1. Find the optimal price, quantity and profits when the firm is able to practice third degree price discrimination. 2. Find the optimal price, quantity and profits when the firm is unable to practice third degree price discrimination. 3. Compute the price elasticity of demand associated with each optimal monopoly output in each segment....

Let Q(p) = (a + bp)^(θ/(1-θ)) for the demand curve. If c is the constant marginal...

Let Q(p) = (a + bp)^(θ/(1-θ)) for the demand curve. If c is the constant marginal cost and there is a monopoly, calculate dp/dc

Consider a competitive firm with the short-run cost function C(q) = 20 + 6q + 5q2...

Consider a competitive firm with the short-run cost function C(q) = 20 + 6q + 5q2 The firm faces a market price of p for its output. a. Derive the firm's profit maximizing condition. Is the sufficient second order condition satisfied? b. Suppose a specific tax of t (t < p) is levied on only this firm in the industry. What is the profit maximizing level of output as a function of p and t? (Assume the price is high...

Consider a monopoly firm that faces the following demand curve, total cost curve, and marginal cost: P(Q) = 120 – 4Q; TC(Q) = 400 + 4Q; MC = 4

Consider a monopoly firm that faces the following demand curve, total cost curve, and marginal cost: P(Q) = 120 – 4Q; TC(Q) = 400 + 4Q; MC = 4a. What is the marginal revenue (MR) equation?b. Determine the profit maximizing level of production for this monopolist.c. What is the price that the monopolist will charge at the profit maximizing level of production?d. What is the monopolists’ profit at the profit maximizing level of output?e. Suppose the government regulates the industry...

Consider the following demand, TC, MC and MR equations: P=56-Q TC=3Q2+20 MC=6Q MR=56-2Q What is the...

Consider the following demand, TC, MC and MR equations: P=56-Q TC=3Q2+20 MC=6Q MR=56-2Q What is the quantity set by a monopolist? What is the price set by the monopolist? What is the quantity set in perfect competition? What is the price set in perfect competition? Draw the demand and supply graph. Include and label appropriately the marginal revenue curve, and indicate the equilibrium in perfect completion and in monopoly. On the graph shade in the area denoting DWL if there...

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