A monopolist has a cost function given by C(y)=y2 and faces a demand curve given by P(y) = 120-y. If you impose a lump sum tax of £100 on this monopolist, what will be the impact on output? Explain your calculations and the intuition behind your result.
Q: Provide a good example of Internal Locus of Control
A: "A locus of our control (outer control direction)." (orientation of external control)"275)…
Q: Set MR MC to find equilibrium quantity Qypy and price PHPY as functions of a, b, c, & d. Qupy = %3D…
A: In perfect competition, the eqm Q(quantity) is found by the intersection of MC(marginal cost) and…
Q: When CPI is calculated, chicken breasts are given greater weight than pork chops if a the price of…
A: Consumption prices are measured by the consumer price index (CPI), which tracks changes in the…
Q: Find the marginal & the average functions for each of the following total function, evaluate them at…
A: Average Function : Total Function/Q Marginal Function : dTotalfunction/dQ
Q: In a flexible exchange rate system with perfect capital mobility, if restrictive fiscal policy is…
A: The measure of the rate that depicts the value of one currency being measured in terms of another…
Q: Summarize this Each Pa-Bi-Board prototype measures 4-inches in width and 5.5-inches in height, and…
A: Each Pa-Bi-Board prototype is 4-inches wide and 5.5-inches tall, with a thickness of around…
Q: Assume that there is a 10% required reserve ratio and the public deposits $20 million in the First…
A: Given Deposits = 20 Million $ Reserve ratio = 10 % Required reserves = 10 % of deposits = 2 Million…
Q: The manager of a Pittsburgh shop wishes to sell on eBay a used telescope that is in good condition.…
A: Price for a good conditioned telescope is $1,030 Price for a poor conditioned telescope is $340
Q: Maria is preparing for a job interview at a local hospital. Based on what you know about…
A: Identifying a decision, acquiring information, and evaluating possible remedies are all steps in the…
Q: ow does trade generate more gains or, instead, losses to a country's economic growth and…
A: The measure that depicts the exchange of goods and services in an economy in exchange for money in…
Q: Discuss the difference between the merchandise trade balance and the US current account balance.…
A: Trade refers to the exchange of goods between different markets or between different places. It…
Q: Discuss the ways that running a trade deficit could result in either a healthy economy or a weaker…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: The table shows the demand schedule of a monopolist. Calculate marginal revenue and fill in the…
A: Total Revenue = Price*Quantity Marginal Revenue = TR2 - TR1 A monopolist maximizes profit where…
Q: Problem 3 - The Perfect Subgame Find the set of pure strategy Nash equilibria and subgame perfect…
A: Subgame nash equilibrium is one of the type to solve the game in this we divided the game into sub…
Q: It costs the restaurant $6.50 to prepare each meal. Use the table to answer questions.
A:
Q: Distinguish between short-run and long-run supply curves.
A: Short run refers to a period of time during which some manufacturing elements are constant while…
Q: 8) The market for paper in a particular region in the United States is characterized by the…
A: Given; Demand function; QD=160000-2000PSupply function; QS=40000+2000PMEC=0.0006QS
Q: Use the following information to calculate the change in value that would result if the benchmark…
A: A daily modification to the price of a company's shares is referred to as a value change. The number…
Q: Explain how governments enact trade policies globally, regionally, and at the national level. What…
A: The government links trade strategies by considering the country's commodities demand and the level…
Q: omplete the following table, given the information presented on the graph. Result Value Equilibrium…
A: The consumer surplus refers to the difference between what a consumer is willing to pay and what…
Q: (Figure: Short- and Long-Run Equilibrlum I) Use Figure: Short- and Long-Run Equlibrium . If the…
A: Long run equilibrium is achieved where LRAS = AD = SRAS . In Long run equilibrium economy is at…
Q: consider an oligopoly where firms sell differentiated goods and compete in prices. in this case the…
A: Oligopoly An oligopoly is a form of market in which there are some large sellers or producers in…
Q: Capital investment $100,000 Annual revenues $30,000 Annual expenses $9,000 Market value $10,000…
A: Given information Initial capital=$100000 Annual revenue=$30000 Annual expenses=$9000 Market…
Q: Let u(x.y)=(x+2)y. Find the following a. the Marshallian demand functions for x and y b. the…
A: We have a utility function u(x,y)=(x+2)y .... (1) Let the price of good x is px and the…
Q: For all True/False questions, you must explain why the answer is true or false. 1. sold last year,…
A: here we find whether the given statement is true of false by the following method as follow:-
Q: How will the following issues shape compensation professionals' work for years to come: Increased…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: QUESTION 17 A change in the reserve requirement is the tool used least often by the Fed because it:…
A: Money Supply: - In an economy, the total value of money in circulation at a point in time is known…
Q: What happens to the value of nominal interest rate in the economy when the Federal Reserve buys…
A: The federal reserve operates the monetary policy. The open market operation is used to buy or sell…
Q: difference between MNEs in emerging market economies and Western (traditional) MNEs
A: Since there is so much diversity across emerging market countries, the definition of emerging…
Q: Joan rents ovens at a local shared commercial kitchen to make cakes. The table below shows the…
A: Since price is constant, the market is competitive. Marginal product refers to change in total…
Q: 5. Assume the government follows a Keynesian approach and alters spending to return the economy to…
A:
Q: How will NAFTA affect marketing opportunities for U.S. products in North America (the United States,…
A: Meaning of Trade: The term trade refers to the situation under which the products and goods are…
Q: What does the formula current assets/total assets show you? If you compare over two years, what…
A: A current asset is any asset that will provide an economic value for or within one year. Current…
Q: 9) There are three groups in a community. Their demand curves for public television in hours of…
A: The correct answer is given in the second step.
Q: Briefly discuss the utilitarian, right, and justice arguments against discrimination.
A: Discrimination based on economic grounds is known as economic discrimination.Job availability,…
Q: The makers of Panax pain reliever do a lot of advertising and have very loyal customers. In…
A: According to the question, The makers of Panax pain reliever do a lot of advertising and have…
Q: The table shows employment statistics for a fictional country. Use the information to answer the…
A: New labour force:- = 5905 + 246 = 6151 New labour force participation rate:- = Labour force /…
Q: C+lg+G AE C+lg 150 125 75 $300 $500 $800 Income 13, Which of the following are true statements about…
A: The expenditure-output model, also called as the Keynesian cross, defines the equilibrium level of…
Q: Question 20 An island community has two residents: Katie and Dylan. Katie has a utility function of…
A: Utilitarian perspective of welfare is provided by the sum of individual utilities whereas Rawlsian…
Q: Suggest two (2) stakeholders/ groups that may be appropriately represented as: 1. (low interest and…
A: Shareholders: It refers to the people who are an essential part of the business growth. The increase…
Q: There is a 20% tax on the first $15,000 of income, a 30% tax on income above $15,000 until $30,000,…
A: Given, 20% tax on the first $ 15000 of income , a 30% tax on income above $ 15000 until $ 30000 and…
Q: True or False. Explain your answer: A decrease in airfare prices will increase the demand for…
A: Demand: - Demand is the relationship between the quantity demanded and the price of a good.
Q: Problem 4. Equilibrium interest rate and exchange rate.f" Using the framework relating money…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub parts…
Q: Most individuals and businesses cannot pay for large economic losses, so they share the risk with…
A: Most people and organisations cannot afford to pay for huge financial losses, so they buy insurance…
Q: Suppose that Annie's real income this year is $150 and next year it will be $100. Assume that the…
A: Incomes Y1=150 and Y2=100 And r=0.1
Q: Which of the following questions are macroeconomic questions? A. What factors determine the…
A: Meaning of Economics: The term economics refers to the situation under which there remain…
Q: Investment equals $2,120 million in your country. Private saving is $2,750 million and the…
A: Trade balance: - trade balance is the difference between a country’s exports and imports in terms of…
Q: will need to upload your answers. Assume a company is producing 600 units of output per day and…
A: The term "short run" refers to a period of time during which the amount of at least one input…
Q: QUESTION ( Chloe is working as a saleswoman. As she drives a lot for her work, she receives…
A: chloe is getting total money includes basic pay which is 4352 per month and compensation amount per…
Q: Define protectionism, and explain nontarriff barriers to trade. Who are the major beneficiaries and…
A: Protectionism is a strategy of defending native industries from international competition by…
A monopolist has a cost function given by C(y)=y2 and faces a demand curve given by P(y) = 120-y.
If you impose a lump sum tax of £100 on this monopolist, what will be the impact on output? Explain your calculations and the intuition behind your result.
Step by step
Solved in 2 steps
- A monopolist has a cost function given by C(y)=y2 and faces a demand curve given by P(y) = 120-y. a) What is the profit maximising level of output and the price that the monopolist will charge? Show your calculations. b) If you impose a lump sum tax of £100 on this monopolist, what will be the impact on output? Explain your calculations and the intuition behind your result. c) If you wanted to choose a price ceiling for this monopolist so as to maximise consumer plus producer surplus, what price ceiling should you choose? How much output will the monopolist produce at this price ceiling? Explain your calculations.A monopolist faces the demand function P= 10 - Qand the total cost function TC = %3D 2Q. Showing all your workings, calculate the maximum profit earned by the monopolist from using a two-part tariff.Consider the following inverse demand curve: p = 300 – 3Q A firm's cost function is given by C(Q) = 3600 + Q² Argue that this firm must be a natural monopolist. As a monopolist, what output and price will they charge? What will their profit be? Compare this to the outcome if they behaved as though they were in a competitive market. What is the difference in welfare?
- A monopolist has the following marginal revenue function MR = 1,600 - 20Q, and marginal cost function MC = 200 + 30Q and faces the following the demand curve p 1200-10Q. And the total cost function is TC= 200Q+15Q². Q refers to the number of units produced by the monopolist. Find the profit maximizing quantity (in number of units produced) for this monopolist. The result should be an integer number, no decimals (e.g. if the result is 3.65 write 4, if the result is 3.64, write 3). = Your Answer:Consider a market with 190 consumers. Of these, 90 of them have individual (inverse) demands given by: PM(Q)=10−Q, while each of the other 100 has an individual (inverse) demand of PS(Q)=10−10Q. The cost function of the monopolist serving this market is C(Q) = 6Q - Q^2/400 . (a) Find the aggregate demand. Analyze the cost function and find what kind of returns to scale it exhibits. Compute the efficient total output (ignoring break-even constraints).(b) Compute the optimal linear price (and quantity) for this monopolist, and the deadweight loss.A monopolist has discovered that the inverse demand function of a person with income Y for the monopolist’s product is P = 0.002Y-Q where P is the price, Y the income, and Q is the output. The monopolist can observe the incomes of its consumers and hence vary its price accordingly. The monopolist has a total cost function C(Q) = 100Q. A. Calculate the profit maximising price as a function of the consumer’s income Y carefully explaining all the steps in the derivation of the formula. B. A monopolist has a constant marginal cost of £2 per unit and no fixed costs. He faces two separate markets in the United States and in the UK. The goods sold in one market are never resold in the other. He sets one price P1 for the US market and another price P2 for the UK market (both measured in £). The demand in the United States is given by Q1=7,000-700P1 and the demand in the UK is given by Q2=1,200-200P1. Calculate the profit maximising output produced and price charged in each country by the…
- Cost function of a monopolist is given by C=F +2Q where F stands for fixed cost. The monopolist will earn profit=0 if it charges price of $4. If the market demand is given by Q=20-p, what is the value of the fixed cost F?A monopolist's inverse demand function is P=150-3Q. the company produces output at two facilities; the marginal cost of producing at facility 1 is MC1(Q1)=6Q1, and the marginal cost of producing at facility 2 is MC2(Q2)=2Q2 A). Provide the equation for the monopolist's marginal revenue function. MR(Q)= ___ -___Q1-____Q2 B). Determine the profit-maximizing level of output for each facility. Output for facility 1: Output for facility 2: C). Determine the profit-maximizing price.Consider a monopolist with a total cost function given as C(Q) = 1.5Q2 + 40Q that faces an inverse market demand function P(Q) = 280 − 0.5Q **Calculate the profit-maximizing quantity, price, and economic profits for this monopolist, with the government imposing a $20 per unit tax. Quantity: ? (Round your answer to two decimal places). Price: ? (Round your answer to two decimal places). Economic profits: $ ? (Round your answer to two decimal places).
- Market research shows that a particular monopolist faces a market demand function given byIts cost function isP （Q） = 50 - 2Q.C（Q）= 47 + 10Q What is the monopoly market price and quantity? What is the monopolist’s profit? What is consumer surplus at the monopoly price? What would the price and quantity be in this market be if the monopolist behaved as in perfect competition? What is the consumer surplus in the case of perfect competition? Which is higher and why? What is the “social cost” of monopoly?A monopolist faces the following aggregate demand function: Q = 28 – 1/2 P. Total production costs for the firm are TC(Q) = 40Q. Calculate the consumer surplus, producer surplus, and profits in equilibrium. Then, suppose that the monopolist decides to spend 10 to purchase a patent that would allow her to decrease total costs by 4 per unit. Find the new equilibrium quantity, price, new consumer surplus, producer surplus, and profits to the monopolist after the purchase of the patent.Economics Consider the following cost function faced by the monopolist: TC(q)= 2q2+20q+10. The demand faced by the monopolist is the following: p(q)=200-10q, where q denotes quantity and p denotes price. Find the price and quantity that maximizes profit of the monopolist. If the monopolist becomes a perfectly price discriminating monopolist, calculate the Consumer Surplus and Producer Surplus.
