Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Address the questions in pictures. ~l The figure below shows a market in which there is a single seller and a constant marginal cost of

image text in transcribed

Address the questions in pictures.

image text in transcribedimage text in transcribedimage text in transcribed
~l The figure below shows a market in which there is a single seller and a constant marginal cost of production. Pricl (Sluml sum 10.00 25.0 50.0 Math lunlu) ac\" it charges a slngie price for its product, what is the seller's profit-maximizing price and quantity? loss. b. If the seller charges a single price for its product. what are the dollar amounts of consumer surplus. producer surplus, and deadweight c. I If the seller price discriminates perfectly. what is the seller's profit-maximizing price and quantity? (Hint: What is the range of prices?) d. i If the seller price discriminates perfectly. what are the dollar amounts of consumer surplus. producer surplus. deadweight loss and total surplus? I) A profit-maximizing firm in a competitive industry has the cost structure shown in the table below. Quantity Average Average Marginal Total Cost Fixed Cost Cost 1 25.00 20.00 4.20 2 14.40 10.00 3.60 3 10.87 6.67 4.20 4 9.40 5.00 6.00 5 9.00 4.00 9.00 6 9.33 3.33 13.20 7 10.26 2.86 18.60 8 11.70 2.50 25.20 13.62 2.22 33.00 10 16.00 2.00 42.00 Calculate this firm's shut-down price, and explain your answer. What is this firm's supply curve? In answering this question, indicate the minimum price necessary for the firm to produce a positive quantity and the quantity it would produce that minimum price? (Hint: Draw on your answer to part a.) C. If marginal revenue is $9, how much output will the firm produce, and how much profit will it make? Show your calculations.I)The figure below shows a market in which there is an externality. The curve 52 is parallel to S1. Areas in the figure are numbered. Price 50.00 19.1 32.4 mummy a. )What type of externality is shown in the figure and why:f is it a problem in economics? b. Identify the market equilibrium and the social equilibrium in the figure. c. If the market were to move from the market equilibrium to the social equilibrium. indicate the areais] that represent the change in consumer surplus. the change in producer surplus. the change for third parties. and the net effect on total surplus. Does total surplus rise or fall? :1. (-1 What would be the amount of a per-unit tax needed to fix the external ity

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

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

Elementary Statistics

Authors: William Navidi, Barry Monk

3rd Edition

1259969452, 9781259969454

Students also viewed these Economics questions