Question

Suppose these are the following Demand/MV and Supply/MC equations for higher education, where Q is the...

Suppose these are the following Demand/MV and Supply/MC equations for higher education, where Q is the number of students and P is tuition.
The marginal value equation is: MV=13.30-1.30*Q
The marginal cost equation is: MC=1.80+0.55*Q





What is the equilibrium tuition(price)?


Students receive a per-unit $2.00 scholarship if they attend university.




What is the new tuition?




What is the total amount spent on scholarships?

Now, in addition to the scholarships received by students, the university receives a $1 per student subsidy.







What will the new tuition be?





What is the total revenue (including subsidy) to universities?

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 study of a country's colleges and universities resulted in the demand equation q = 20,000...
A study of a country's colleges and universities resulted in the demand equation q = 20,000 − 2p, where q is the enrollment at a public college or university and p is the average annual tuition (plus fees) it charges.† Officials at Enormous State University have developed a policy whereby the number of students it will accept per year at a tuition level of p dollars is given by q = 8,000 + 0.5p. Find the equilibrium tuition price p...
A study of a country's colleges and universities resulted in the demand equation q = 20,000...
A study of a country's colleges and universities resulted in the demand equation q = 20,000 − 2p, where q is the enrollment at a public college or university and p is the average annual tuition (plus fees) it charges.† Officials at Enormous State University have developed a policy whereby the number of students it will accept per year at a tuition level of p dollars is given by q = 5,400 + 0.5p. Find the equilibrium tuition price p...
A study of a country's colleges and universities resulted in the demand equation q = 20,000...
A study of a country's colleges and universities resulted in the demand equation q = 20,000 − 2p, where q is the enrollment at a public college or university and p is the average annual tuition (plus fees) it charges.† Officials at Enormous State University have developed a policy whereby the number of students it will accept per year at a tuition level of p dollars is given by q = 8,900 + 0.5p. Find the equilibrium tuition price p...
Assume the following inverse demand function p(q)=40-q and the marginal cost function MC(q)=10+2q. The government offers...
Assume the following inverse demand function p(q)=40-q and the marginal cost function MC(q)=10+2q. The government offers a subsidy of $9 per unit sold. A Calculate the price and quantity without subsidy B Calculate the price and quantity with subsidy C What is the value of the aggregated subsides? D What is the value of the deadweight loss caused by the subsidy?
A study of U.S. colleges and universities resulted in the demand equation q = 20, 000...
A study of U.S. colleges and universities resulted in the demand equation q = 20, 000 − 2 p , where q is the enrollment at a public college or university and p is the average annual tuition (plus fees) it charges. Officials at Enormous University have developed a policy whereby the number of students it will accept per year at a tuition level of p dollars is given by the supply equation, q = 7, 500 + 0.5 p...
1. Consider the market for textbooks in University city, where the market demand is P =...
1. Consider the market for textbooks in University city, where the market demand is P = 120 − Q (where Q is in thousands) and the Penn bookstore is a monopoly with costs T C = 20Q + 400, MC = $20. (a) Assume the bookstore cannot price discriminate. Find the profit maximizing price PM and quantity QM, as well as the maximum profit of the bookstore. (b) Suppose that the University decides to regulate the bookstore, and impose Marginal...
Suppose that a market is described by the following supply and demand equations: QS = 2P...
Suppose that a market is described by the following supply and demand equations: QS = 2P QD = 400 - 3P Suppose that a tax of T is placed on buyers, so the new demand equation is QD = 400 – 3(P+T) Solve for the new equilibrium. What happens to the price received by sellers, the price paid by buyers, and the quantity sold? Tax revenue is T x Q. Use your answer from part (b) to solve for tax...
6.7 The production function Q=KaLb where 0≤ a, b≤1 is called a Cobb-Douglas production function. This...
6.7 The production function Q=KaLb where 0≤ a, b≤1 is called a Cobb-Douglas production function. This function is widely used in economic research. Using the function, show the following: a. The production function in Equation 6.7 is a special case of the Cobb-Douglas. b. If a+b=1, a doubling of K and L will double q. c. If a +b < 1, a doubling of K and L will less than double q. d. If a +b > 1, a doubling...
Q1 Ch1 (20%) a. Supply: Suppose the following information is known about a market: 1. Sellers...
Q1 Ch1 (20%) a. Supply: Suppose the following information is known about a market: 1. Sellers will not sell at all below a price of $2. 2. At a price of $10, any given seller will sell 10 units. 3. There are 100 identical sellers in the market. Assuming a linear supply curve, use this information to derive the market supply curve. b. Demand: Suppose the demand for a particular product can be expressed as Q = 100/p. Calculate the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT