Question

4. Assume a demand of Q = 800 – 2P Assume this market is served by...

4. Assume a demand of Q = 800 – 2P Assume this market is served by a monopoly. MC = AC = $20. a. Calculate the consumer surplus. b. Calculate the producer surplus. c. Calculate the deadweight loss.

Homework Answers

Answer #1

Thank You and Best of Luck :)

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. Let demand for car batteries be such that Q= 100 - 2P. Assume constant marginal...
1. Let demand for car batteries be such that Q= 100 - 2P. Assume constant marginal costs of 15. Compute the equilibrium price, quantity, consumer surplus, producer surplus and if relevant deadweight loss for: 1) A perfectly competitive firm 2) A monopoly 3) Two firms engaged in Cournot Competition 4) Two firms engaged in Bertrand Competition
The demand for skateboards in Vermillion is Q = 500−2P and the supply curve is Q...
The demand for skateboards in Vermillion is Q = 500−2P and the supply curve is Q = 1/2 P. The government 2 decides to raise revenue by taxing consumers $25 for each skateboard purchased. (a) Graph the supply and demand curves and calculate the consumer and producer surplus that would exist if there were no tax in the market. (b) Show how the tax will change the market equilibrium price and quantity. Identify the price paid by consumers and the...
Suppose the market demand function is Q = 120 – 2P, and the marginal cost (in...
Suppose the market demand function is Q = 120 – 2P, and the marginal cost (in dollars) of producing the product is MC = Q, where P is the price of the product and Q is the quantity demanded and/or supplied. How much would be supplied by a competitive market? (Hint: In a perfect competition, the profit maximization condition is MR=P=MC) Compute the consumer surplus and producer surplus. Show that the economic surplus is maximized.
Suppose the market demand is given by Q = 30 - 2P , and the market...
Suppose the market demand is given by Q = 30 - 2P , and the market supply is given by Q = - 15 + 3P a)What is the value of Consumer Surplus when the market is in equilibrium? CS (euilibrium)= b) Now suppose a Price Floor is set at $11. Calculate the Consumer Surplus after the Price Floor is imposed. CS (Price Floor)=
here are the demand and supply curves for a competetive market Q=70 -P and Q= -20+2P...
here are the demand and supply curves for a competetive market Q=70 -P and Q= -20+2P i. Calculate the equilibrium in the market. ii. calculate the consumer supply, producer supply, and total surplus in this competetive free market. (For parts iii and iv) Now suppose the government intervenes and wants to impose a price ceiling in this market. iii. The government hires you to give advice. What do you recommend the government set the price ceiling to be for it...
1. Consider a market with inverse demand P (Q) = 100 Q. A monopolist with linear...
1. Consider a market with inverse demand P (Q) = 100 Q. A monopolist with linear cost C(Q) = 20Q serves this market. (a) Find the monopolistís optimal price and quantity. (b) Find the price, quantity, proÖt, consumer surplus, and social welfare under perfect competition. (c) Find the optimal proÖt, consumer surplus, social welfare and the deadweight loss for monopoly. (d) What is the % loss in social welfare as we move from perfect competition to monopoly.
(a) Consider a monopoly market with the following demand equation for a good Z. P =...
(a) Consider a monopoly market with the following demand equation for a good Z. P = 100 – 0.2 Q Suppose fixed cost is zero and marginal cost is given by MC = 20. Answer the following questions. (i) Based on the information given, draw the diagram which shows the marginal revenue (MR) curve, marginal cost (MC) curve and the demand (D) curve of the monopoly. Show the value of X and Y intercepts for these curves. (ii) Explain why...
Suppose the demand curve for a good is Q =9 −pand the supply curve is Q...
Suppose the demand curve for a good is Q =9 −pand the supply curve is Q =2p. The government imposes a specific tax of =1 per unit. What would be the equilibrium? What effect does the tax have on consumer surplus, producer surplus and deadweight loss?
The market demand curve for some type of shrimp in Louisiana has the following form: Q=200-2P....
The market demand curve for some type of shrimp in Louisiana has the following form: Q=200-2P. There are 500 competitive shrimpers in the market and the sum of their marginal costs curves is MC=20+2Q. a) Find the equilibrium price and quantity demanded and supplied in this market. b) Write down the demand function faced by one of these small producers. c) Now, a wise guy buys out all 500 shrimpers and monopolizes the market. What price will he charge for...
In a market with numerous sellers and buyers demand is given by p=240-8q and supply is...
In a market with numerous sellers and buyers demand is given by p=240-8q and supply is p=4+12q. 1. Find the equilibrium price and quantity. 2. Mathematically find the values for consumer and producer surplus. 3. What is the deadweight loss in this market? 4. Suppose instead a monopolist served these same buyers, and the monopolist had marginal cost curve 4+12q. a. Show graphically the consumer surplus that consumers have lost due to monopoly. b. Consumer surplus is lower for two...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT