Question

In: Economics

a market has a demand curve p= 700- 2q. the supply curve for the market which...

a market has a demand curve p= 700- 2q. the supply curve for the market which is also the monopolists marginal cost curve is given by p= 100 + q. calculate the change in quantity, price, consumer surplus, and producer surplus going from a perfectly competitive market to a monopoly

Solutions

Expert Solution

Note - Please hit like and comment for further clarifications. It's urgent.

.


Related Solutions

Consider a market where demand is P = 10 - 2Q and supply is P =...
Consider a market where demand is P = 10 - 2Q and supply is P = Q/2. There is a consumption positive externality of $2.50/unit of consumption a. Calculate the market equilibrium. b. What is the social optimum quantity and price? c. If the government uses a tax to get producers to internalize their externality, what is the net price received by producers? d. Calculate the total surplus in the market equilibrium, at the social optimum and with the tax....
Consider a market where demand is P = 10 - 2Q and supply is P =...
Consider a market where demand is P = 10 - 2Q and supply is P = Q/2. There is a consumption positive externality of $2.50/unit of consumption a. Calculate the market equilibrium.    b. What is the social optimum quantity and price?    c. If the government uses a tax to get producers to internalize their externality, what is the net price received by producers?    d. Calculate the total surplus in the market equilibrium, at the social optimum and...
Consider an industry which has a market demand curve given by P=260−2Q. There are two firms...
Consider an industry which has a market demand curve given by P=260−2Q. There are two firms who are Cournot competitors. Firm 1 has marginal costc1=80 and firm2 has marginal costc2=20. (a) [10 points] Find the Nash equilibrium quantities for these two firms. (b) [20 points] Use the quantities you found in part (a) to find the profits for each firm and the market-clearing price. (c) [20 points] Suppose these firms decide to form a cartel and collude. The firms will...
In a duopoly market with two identical firms, the market demand curve is: P=50-2Q And the...
In a duopoly market with two identical firms, the market demand curve is: P=50-2Q And the marginal cost and average cost of each firm is constant: AC=MC=2 a. Solve for firm 1’s reaction curve and graph b. Solve for firm 2’s reaction curve and graph c. Solve for each firm’s Q and P in a cournot equilibrium and show on your graph i. What is the profit for each firm?
4. Please consider the following market: Demand by P = 19 - 2Q Supply by P...
4. Please consider the following market: Demand by P = 19 - 2Q Supply by P = 5Q a. Please solve the equilibrium Quantity and Price. and calculate the CS (consumer’s surplus), PS (producer’s surplus), DWL (if there is any), and ES (Economics surplus) Suppose we now place a tax of $5 per unit of output on the seller. b. What would the new supply curve is? c. Please solve the new equilibrium quantity and price. If the demand curve...
The demand for slurpees in a competitive market is P=100-2Q and supply is P=Q. What is...
The demand for slurpees in a competitive market is P=100-2Q and supply is P=Q. What is the equilibrium price and quantity? What is the value of the area of consumer surplus? What is the value of the area of producer surplus? What are the gains to trade in the market? Suppose the slurpee market is monopolized by one firm. Assume the supply function now represents the monopolist’s marginal costs schedule. The demand schedule is unchanged. What is the monopolist’s marginal...
1. Please consider the following market: Demand by P = 19 - 2Q Supply by P...
1. Please consider the following market: Demand by P = 19 - 2Q Supply by P = 5Q a. Please solve the equilibrium Quantity and Price. and calculate the CS (consumer’s surplus), PS (producer’s surplus), DWL (if there is any), and ES (Economics surplus) b. Suppose we now place a tax of $5 per unit of output on the seller. a. What would the new supply curve is? b. Please solve the new equilibrium quantity and price. 2. If the...
The demand for potato chips in a comptitive market is P=100-2Q and supply is P=Q. -...
The demand for potato chips in a comptitive market is P=100-2Q and supply is P=Q. - What is the equilibrium price and quantity? - What is the value of the area of consumer and producer surplus? - What are the gains to trade in the market? Suppose the potato chip market is monopolized by one firm. Assume the suupply function now represents the monopolist's marginal cost schedule. The demand schedule is unchanged. - What is the monopolist's marginal revenue mathematically?...
In a market demand and supply equations are: The demand curve is given as: P =...
In a market demand and supply equations are: The demand curve is given as: P = 50 - 3Q The supply curve is given as: P = 10 + 2Q Assuming a perfectly competitive market: What is the total wealth?  
The market demand curve is P = 90 − 2Q, and each firm’s totalcost function...
The market demand curve is P = 90 − 2Q, and each firm’s total cost function is C = 100 + 2q2.1. Suppose there is only one firm in the market. Find the market price, quantity, and the firm’s profit.2.Show the equilibrium on a diagram, depicting the demand function D (with the vertical and horizontal intercepts), the marginal revenue function MR, and the marginal cost function MC. On the same diagram, mark the optimal price P, the quantity Q, and...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT