Based on market research, a film production company in Ectenia obtains the following information about the demand and production costs of its new DVD:

Demand: P= 1,000- 10Q

Total Revenue: TR= 1,000Q- 10Q²

Marginal Revenue: MR= 1,000- 20Q

MC= 100 + 10Q

where Q indicates the number of copies sold and P is the price in Ectenian dollars.

Complete the following table by finding the price and quantity that maximize the company’s profit and the price and quantity that maximize social welfare.

The deadweight loss from the monopoly is $ ___??.

Suppose, in addition to the costs above, the director of the film has to be paid. The company is considering four options:

1: A flat fee of 2,000

2. 50 percent of the profits

3. 50 ectenian dollars per unit sold

4. 50 percent of the revenue

Complete the following table by finding the price and quantity that maximize the company’s profit under each of the following options.

Assume that the supply function for X is Q(s) = -50 + 5P.

Using this information, select the correct responses from the answers below. Note that multiple answers may be correct.

A.)

B.)

C.)

D.)

E.)

9. Taxation - An algebraic approach

Suppose the supply of a good is given by the equation QS=100P−100QS=100P−100, and the demand for the good is given by the equation QD=350−50PQD=350−50P, where quantity (Q) is measured in millions of units and price (P) is measured in dollars per unit.

The government decides to levy an excise tax of $3.00 per unit on the good, to be paid by the seller.

Calculate the value of each of the following, before the tax and after the tax, to complete the table that follows:

Given the information you calculated in the preceding table, the tax incidence on consumers is   per unit of the good, and the tax incidence on producers is   per unit of the good.

The government receives   in tax revenue from levying an excise tax of $3.00 per unit on this good.

True or False: The price ultimately received by the seller (that is, the amount of money that the seller gets to keep after receiving payment from the buyer and paying any applicable taxes) would have been different if the tax had been levied on buyers instead.

True

False

Two suppliers have been contracted by a government agency to train agency employees learning to use a new computer system. The marginal cost curve of firm 1 is MC1=160+2Q1, while the marginal cost curve for Firm 2 is MC2=100+Q2, where Q is hours of training per week. Originally, each firm provides 60 hours of training services each week.

What is the total cost to firm 1 of providing 60 hours of training each week?

What is the total cost to firm 2 of providing 60 hours of training each week?

An economically-literate manager suggests it would be better to state a price that the government is willing to pay for an hour of training, and let each firm provide the number of hours they are willing to at this price.

What price should the government set to cost-effectively distribute the number of hours between the two firms while maintaining the total training provided at 120 hours per week?

How many hours of training will firm 1 provide at this price?

What is firm 1’s total cost?

How many hours will firm 2 provide at this price?

What is firm 2’s total cost?

How large is the cost savings resulting from the price rationed system relative to the original allocation of 60 training hours for each firm?

1- If the seller is legally responsible for paying the tax, then

A.the supply curve is shifted to show the imposition of the tax.

B.the demand curve is shifted to show the imposition of the tax.

C.the after-tax price to the seller(PS )equals the original price minus the tax.

D.the after-tax price to the buyer (PB ) equals the original price plus the tax.

2- The smaller the elasticity of supply, the ______ is the decrease in the equilibrium quantity, the ______ is the deadweight loss, and the ______ is the tax revenue.

A.greater; greater; smaller

B.smaller; greater; smaller

C.smaller; smaller; greater

D.greater; greater; smaller

3- If the demand curve is more elastic than the supply curve, then

A.the actual burden will be higher for the buyer than for the seller.

B.the actual burden will be higher for the seller than for the buyer.

C.the statutory burden will be higher for the buyer than for the seller.

D.the statutory burden will be higher for the seller than for the buyer.

4-When an effective production quota is applied, the quantity produced ______ and the price ______. On the last unit, the marginal benefit ______ marginal cost.

A.decreases; rises; exceeds

B.increases; falls; is less than

C.decreases; falls; is less than

D.increases; rises; exceeds

5-A tax on a good _________________ the price that sellers effectively receive, _________________ the price that buyers effectively pay, and _________________ the quantity exchanged.

A.raises; lowers; raises

B.raises; raises; lowers

C.lowers; lowers; raises

D.lowers; raises; lowers

6-Suppose the government decides to tax tennis shoe producers for every pair sold. Before the tax, 100 pairs of tennis shoes are sold every year at a price of 300 dirhams per pair. After the tax is imposed, 80 pairs are sold yearly; consumers pay 320 per pair and producers get to keep 290 per pair.

-The statutory burden of the tax is

A.split evenly between consumers and producers.

B.on consumers.

C.on producers.

D.split between consumers and producers with consumers paying a larger share.

-The actual burden of the tax is

A.split evenly between consumers and producers.

B.split between consumers and producers with consumers paying a larger share.

C.on consumers.

D.on producers.

-The amount of the tax is

A.10 dirhams.

B.320 dirhams.

C.20 dirhams.

D.30 dirhams.

-The burden of the tax on consumers is

A.30 dirhams.

B.20 dirhams.

C.320 dirhams.

D.10 dirhams.

-The burden of the tax on producers is

A.320 dirhams.

B.10 dirhams.

C.20 dirhams.

D.30 dirhams.

-The amount of tax revenue collected is

A.2,400 dirhams.

B.3,000 dirhams.

C.32,000 dirhams.

D.25,600 dirhams.

-The deadweight loss is:

A.the loss of total surplus on 100 pairs of shoes.

B.the loss of total surplus due to the higher price the buyers have to pay and the lower price the sellers get to keep.

C.the loss of consumer and producer surplus on 80 pairs of shoes.

D.the loss of consumer and producer surplus on the 81st to 100th pairs of shoes.

The average daily attendance of a small amusement park is 4,219 people. In order to increase the average daily attendance, the park owners decided to lower the price for admissions. For the first 25 days after the highly publicized price reduction the average daily attendance was 4,537. You can assume that the population standard deviation is 674. Assume that these 25 days can be considered a random sample of the days to come and that daily attendance follows a normal distribution.

a.) Test at the 5% level of significance whether the price reduction was effective. Explain your approach (including your hypotheses and test statistic) and conclusion.

b.) How and why would your answer in Part 1 change if the significance level had been 1%? Explain using 1 or 2 sentences.

thank you! :)

3. Consider a Monopoly with the following demand and cost structures: Price $18 $14 $12 $10 Quantity/ Output10 60 70 80

(a) First, label the relevant graphs correctly. (2 points)

(b) From the diagram what is the profit maximizing output of the monopolist? Why? (2 points)

(c) From the diagram what is the price that the monopolist charges on each unit she sells. Briefly explain. (1 point)

(d) Compute the Monopolist’s profit? (2 points)

(e) If instead this was a perfectly competitive market, what would be the profit maximizing output of this market, and its price? Briefly explain. (2 points)

(f) If this was still a perfectly competitive market with the same cost structure as the monopolist, would the market to be in the short or in the long run? Briefly explain. (2 points)

Q3: a) The following table shows some costs of a typical firm that operates in a perfectly competitive industry where the market price (P*) is $20 per unit. Complete the following table. Show values to 2 decimal places if they are not whole numbers.

Hint: Start with the first row.

b) What is the firm’s profit maximizing output level and what is the size of the firm’s economic profit at this output level?

c) What does the firm’s shut-down price equal?

d) What does the firm’s break-even price equal?

Consider a monopoly with inverse demand function  p = 24 -  y and cost function  c( y) = 5 y 2 + 4:
i) Find the profit maximizing output and price, and calculate the monopolist's profits.
ii) Now consider the case in which the monopolist has now another plant with the cost structure  c 2( y 2) = 10 y 2. How much will the monopolist produce in each plant, what is the price, and the total profits of the monopoly?
iii) Now suppose there is a technological change in the first plant and it has the following cost function:  c 1 ( y 1) = 2 y 1. How much will the monopolist produce in each plant and what is the price?

To be solved step by step

I have only 20 mins. for this to be answered please help