Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

14. The U.S. demand for soy beans has been estimated as: P = 100 - 2Q where P is price ($/ton) and Q is sales

image text in transcribed
image text in transcribed
14. The U.S. demand for soy beans has been estimated as: P = 100 - 2Q where P is price ($/ton) and Q is sales (tons per month). The U.S. domestic supply is expressed as: P = 5+Q A typical firm in this market has a total cost function given as: C = 100 - 20q + 2q2 Suppose the world price is $10 and U.S. has a free trade with the rest of the world. 14.1 (6pt) Please calculate the equilibrium output for a typical firm and the profit (or loss) earned by the typical firm under the free trade scenario. 14.2 (6pt) Assuming the government imposes a import tariff of $10 per ton of soy beans, what is the deadweight loss compared to free-trade scenario

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Advertising

Authors: William F Arens

16th Edition

1260735419, 9781260735413

More Books

Students also viewed these Economics questions

Question

Describe Hartleys seven varieties of pleasure.

Answered: 1 week ago