Question

There is only one manufacturer of dragon glass swords in Westeros: Deanerys' Dragon-lord Swords, inc. These...

There is only one manufacturer of dragon glass swords in Westeros: Deanerys' Dragon-lord Swords, inc. These swords are produced at a constant marginal and average cost of 100 pennies per sword and the market demand is Q=80 - .2P.

a. What is the equilibrium price if DDS swords produces as a single price monopolist?

b. Suppose the government imposes a 20 penny tax per sword on the production of dragon swords. How much revenue will be raised by the tax? How much surplus value will be lost? How much profit will DDS lose?

c. The market demand curve above is the sum of 20 identical individual demand curves Q = 4 - .01P. Suppose DDS swords was a perfect price discriminator. What is the equilibrium price for a package of three swords?

d. Suppose the government imposes the same 20 penny tax per sword on the production of dragon swords. How much revenue would be raised by the tax? How much surplus value will the consumer lose? How much profit will DDS lose?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A). A company produces widgets: it is called widget incorporated. The widgets are produced at a...
A). A company produces widgets: it is called widget incorporated. The widgets are produced at a constant marginal and average cost of 100 coins per widget. The market demand is Q=80-0.2P. What is the equilibrium price if Widget Incorporated produces as a single price monopolist? Suppose the state adds a 20 coin tax per widget on the production of widgets. How much revenue will the tax raise? How much surplus value will be lost? How much profit will Widget Incorporated...
Suppose that the demand equation: P = 6 – Q and supply equation: P = Q....
Suppose that the demand equation: P = 6 – Q and supply equation: P = Q. a. Calculate the price elasticity of demand at equilibrium. b. Calculate the equilibrium price and quantity, and consumer surplus and producer surplus. c. Suppose government imposes a unit tax of $1 on producers. Derive the new supply curve and also calculate the new equilibrium price and quantity. d. Calculate tax revenue and the deadweight loss of this tax.
A.1. a. Suppose the demand function P = 10 - Q, and the supply function is:...
A.1. a. Suppose the demand function P = 10 - Q, and the supply function is: P = Q, where P is price and Q is quantity. Calculate the equilibrium price and quantity. b. Suppose government imposes per unit tax of $2 on consumers. The new demand function becomes: P = 8 – Q, while the supply function remains: P = Q. Calculate the new equilibrium price and quantity. c. Based on (b), calculate the consumer surplus, producer surplus, tax...
Q3: The market for barley is represented by Q = 8,600 – 20P and Q =...
Q3: The market for barley is represented by Q = 8,600 – 20P and Q = 30P – 600 where Q is the quantity of barley measured in tonnes and P is the price of barley per tonne measured in dollars. Hint: Demand and supply graphs are useful for the following questions. They do not need to be precise and you do not need to submit the graphs. a) What are the equilibrium price and equilibrium quantity in this market?...
Consider the market for butter in Saudi Arabia. The demand and supply relations are given as...
Consider the market for butter in Saudi Arabia. The demand and supply relations are given as follows: Demand:             QD = 12 - 2P Supply:                Qs = 3P - 3. P is the price of butter. Calculate: Equilibrium price _____________                   2. Equilibrium quantity _____________ Consumer surplus ___________                       4. Producer surplus ___________ Draw the demand and supply graphs. Show the equilibrium price and quantity, consumer surplus and producer surplus in the graph below. Graphs must be on scale. Suppose government imposes...
Suppose the market for soda is represented by the following supply and demand equations: QS =...
Suppose the market for soda is represented by the following supply and demand equations: QS = 35P – 39.75 and QD = 10.25 – 5P, where P is price per bottle and Q measures bottles per second. a. What are the value of consumer and producer surplus? b. If the government imposes a $0.50 tax per bottle, what are the value of consumer and producer surplus? c. What is the deadweight loss from the tax? How much revenue does the...
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?
2Q Consider a closed economy. Let the demand curve be P = 80 - Q and...
2Q Consider a closed economy. Let the demand curve be P = 80 - Q and the supply curve be P = 20 + 2Q . a) Calculate the equilibrium price and equilibrium quantity. b) Suppose the government sets a price ceiling of $55, what is the amount of excess demand or excess supply? (Write down excess demand or excess supply). c) Suppose the government sets a production quota of 16 units, calculate the equilibrium price and equilibrium quantity. 2....
Consider the market for gasoline in Canada. Suppose the market demand and supply curves are described...
Consider the market for gasoline in Canada. Suppose the market demand and supply curves are described by the equations below. In each case, quantity refers to millions of litres of gasoline per month; price is per litre (in cents). Demand: P = 100 – 5QD Supply: P = 44 + 2QS (a) Plot the demand and supply curves on a scale diagram. (b) Compute the equilibrium price and quantity. (c) Suppose government imposes a tax of 20 cents per litre....
Suppose the weekly demand for a certain good in thousands of units, is given by the...
Suppose the weekly demand for a certain good in thousands of units, is given by the equation P = 35 - Q, and the weekly supply curve of the good by the equation P = 15 + Q where P is the price in dollars. Finally, suppose a per-unit tax of $6, to be collected from sellers is imposed in this market. Complete the following questions. Note: If necessary round your answers to two decimal places. a) Graph the weekly...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT