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given market demand Q=100-P if the market supply function for the smaller firms is given by S=0.5P. And the cost function of the dominant firms is TC=10+40QD, where QD= output of the dominant firm. a) Find the market price and output of the dominant firm at equilibrium. b) Find the output level to be supplied by the smaller firms.
given market demand Q=100-P if the market supply function for the smaller firms is given by S=0.5P. And the cost function of the dominant firms is TC=10+40QD, where QD= output of the dominant firm. a) Find the market price and output of the dominant firm at equilibrium. b) Find the output level to be supplied by the smaller firms.
QS = 3P
QD = 400 – P
a. Solve for the equilibrium price and the equilibrium quantity.
b. Suppose that a tax of T is placed on buyers, so the new demand equation is
QD = 300 – (P + T).
Solve for the new equilibrium. What happens to the price received by sellers, the price paid by
buyers, and the quantity sold?
c. Tax revenue is T x Q. Use your answer to part (b) to solve for tax revenue as a function of T.
d. The deadweight loss of a tax is the area of the triangle between the supply and demand curves.
Recalling that the area of a triangle is 1⁄2 x base x height, solve for deadweight loss as a function
of T.
e. The government now levies a tax on this good of $200 per unit. Is this a good policy? Why or
why not? Can you propose a better policy?
The kito diet become popular caused an increase In demands for meat shifted the meat demaand curves to which direction
Demand for an inferior good is negative related to income or not
A consumer buys only two goods, X and Y. No other goods exist and there is no possibility of saving. The marginal utility of X is independent of the quantity of Y consumed, and the marginal utility of Y is independent of the quantity of X consumed. MUX is constant no matter how he consumes, but MUY falls as consumption increases. In the initial equilibrium he consumes one of each good. How much can you infer about the following:
a.) The slope of the indifference curve
b.) The curvature of the indifference curve
c.) Whether the marginal utility of money is constant, rising, or falling as money income increases.
d.) the income elasticity of demand for Y
e.) The price elasticity of demand for X.
“Florida orange growers” advertise as a group, but individual orange growers do not. What does this fact suggest about the market for oranges? Why?
Supermarket checkout lines all tend to be roughly the same length. Why is that? Explain your answer using one or more concepts related to perfect competition and/or monopoly. (Note that this question is about the checkout lines within a particular store – the question is not about the number of supermarkets or grocery stores.)
Say whether the following statement makes Good Economic Sense, is Complete Economic Nonsense, or is Somewhere In Between: “The products for which demand is the greatest will also be the products that are the most profitable to produce.”
draw a cost and revenue diagram to show the likely impact of reduction in sales
#340153 on Dec 2023