25 15 10 IP D 3 12 15 18 21 24 Q 14. f the free trade price is IP, what is the net gain from trade to this importing economy? (a) $3 (b) $13.5 (c) $27 O (d) $36 C (e) $40.5 CO 20 LO
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- Price (dollars per gallon) $5.50 3.50 2.50 0 30 40 45 D S2 S₁ Quantity (millions of gallons per month)2 (b) What is the profit-maximizing level of output and how much daily profit will the producer below earn if the price of pizza is $ 0.80 per slice? MC S/slice ATC JAVC 1.03 0.80 slices/day 360X A company manufactures and sells x television sets per month. The monthly cost and price-demand equations are C(x) = 73,000 + 80x and p(x) = 300 - 30 Osx<9000. (A) Find the maximum revenue. (B) Find the maximum profit, the production level that will realize the maximum profit, and the price the company should charge for each television set. (C) If the government decides to tax the company $4 for each set it produces, how many sets should the company manufacture each month to maximize its profit? What is the maximum profit? What should the company charge for each set?
- What will be the quantity supplied by country 1 to the rest of the world at a price of 10? (a) 6 (b) 9 (c) 12 (d) 18Assume Red Eye, a monopolist, faces a market demand curve P= 130-20, and has the short-run total cost function TC= 350 + 100. (a) What is Red Eye's profit-maximizing level of output and price? What are profits? (b) Graph the marginal revenue, marginal cost, and demand curves. (c) (d) What would price and output be if Red Eye priced at socially efficient (competitive) levels? What is the magnitude of the deadweight loss caused by monopoly pricing? MacBook Air DOO esc F1 F2 20 F3 F4 F5 F6 F7 F9 F10 F12 # $ % JAADAG 2 3 4 5 Q W E R T S alt option A Z X command D с F V G 6 B Y & 7 H U N *00 8 J F8 1 ( 9 K M MOSISO O V H O L P command V F11 { [ alt option 10 ] 2 deleteConsider the market for running shoes. Draw a firm's average total cost curve with no advertising. Label it ATCO Draw the firm's average total cost curve with advertising. Label it ATC₁. If the firm successfully advertises, the quantity produced increases such that OA. total cost increases and average total cost increases OB. total cost decreases and average total cost increases C. total cost increases and average total cost decreases OD. total fixed cost decreases Click the graph, choose a tool in the palette and follow the instructions to create you
- Refer to the Figure. If the government offers a $20 subsidy on the production of this good, what will be the new consumer surplus? 40 35 30 25 20 15 10 5 +++ 10 15 20 25 30 35 Quantity (The blue S refers to the upward sloping blue line) (a) $125 (b) $200 (c) $625 (d) None of the above. PriceA competitive industry has production processes that generate pollution. okay with studies carried out on the affected population, the marginal costs associated with contamination are constant and 500 u.m. for each unit of the good produced. These costs are associated with lost working days, illness treatment costs and the nuisance generated in the population. Currently the production level of the industry is 250 units and the market price is 1500 (um/unit). Market studies carried out by the firms estimate that if the price rises at 1,800 (mu/unit) the quantity demanded would drop to 200 units and the marginal cost of production of each firm at this new production level is 1,300 (m.u./unit). assume linearity in market demand and in the marginal costs of production of the firms. Graph to justify your answers. )Determine the level of tax that would have to be applied to production to achieve the social optimum.A 2% increase in the price of carrot causes its sales to decrease by 6% and sales of sweet potato to increase by 10%. The cross elasticity of demand for sweet potato with respect to change of price in carrot is____. (a) 3 (b) -3 (c) 5 (d) - 5
- DN3 (a, b) The Keurig pod industry produces one cup of coffee with a constant marginal cost of $4 using a small plastic disposable pod to dispense one serving of ground coffee beans for brewing. The market demand for the Keurig pods is given by P = 22 - Q. This industry also produces excess waste in the form of the empty plastic Keurig pod. These costs are represented by the marginal external cost function, MEC = 0.2Q. a. What is the optimal (efficient) quantity of Keurig pods from a societal perspective? b. The government, concerned about the pollution problem, requires this industry to adopt a fully recyclable Keurig pod that raises the marginal cost of production to MC = $10. Given this new technology, what output level will the industry choose?A competitive industry has production processes that generate pollution. okay with studies carried out on the affected population, the marginal costs associated with contamination are constant and 500 u.m. for each unit of the good produced. These costs are associated with lost working days, illness treatment costs and the nuisance generated in the population. Currently the production level of the industry is 250 units and the market price is 1500 (um/unit). Market studies carried out by the firms estimate that if the price rises at 1,800 (mu/unit) the quantity demanded would drop to 200 units and the marginal cost of production of each firm at this new production level is 1,300 (m.u./unit). assume linearity in market demand and in the marginal costs of production of the firms. Graph to justify your answers. b)Graphically indicate and determine the magnitude of the social cost of the situation with a production level of 250 units.You are importing ladies cotton sweaters from Italy. The FOB Naples contract price is $20.00/pc. International ocean freight is $1.00 and commission due to the buyer’s agent is $1.00/pc. The rate of duty on ladies cotton sweaters is 10%. The dollar amount of duty is: (a) $2.00 (b) $2.10 (c) $1.90 (d) $2.20