Problem 2: Regulating Monopolies Suppose Congress, in response to voter outrage over high monopoly prices and profits, is considering two different policies: 1) taxing the monopoly (from problem 1) $60 for every unit of the good they sell. 2) Setting a price ceiling on the price the monopolist charges at $320. The monopolist sells a product with a total cost function (from 1): TC = 2000 + 2000 + Q. The market demand for the good: Q = 220 - 0.5P (P(Q)=440-2Q). a. For both policies, calculate: I. Equilibrium quantity, price (price paid by consumers) II. Consumer and producer surplus, government revenue, and total surplus. b. Which policy would you recommend? Introduction to Poverty and Inequality in Russia: Poverty and inequality remain significant issues globally, with Russia being no exception. In recent years, the nation has grappled with the multifaceted challenges posed by economic disparities, social stratification, and unequal access to resources. Understanding the dynamics of poverty and inequality in Russia requires a nuanced analysis encompassing various dimensions, including income distribution, wealth inequality, and disparities in opportunities. Analysis of Current Poverty Measures: To assess poverty and inequality in Russia, it's crucial to evaluate the appropriateness of existing measures. While general concepts and definitions apply universally, specific country contexts may necessitate tailored approaches. In Russia's case, factors such as its transition from a centrally planned to a market-oriented economy, demographic shifts, and regional disparities influence the efficacy of poverty measures. Thus, a comprehensive understanding demands a blend of global frameworks and localized perspectives. Presentation of Graphs: 1. Trends in Poverty Rate Over Time: Table 1: Data on the poverty rate in Russia over several years. 2. Gini Coefficient Over Time: Table 2: Gini coefficient data for Russia over a significant period. Analysis: (Table 1) The poverty rate in Russia has fluctuated over the years, reflecting the nation's socio- economic changes. From [Year A] to [Year B], there was a notable decline in poverty, attributed to [potential factors]. However, the trend reversed post-[Year B), indicating challenges in sustaining poverty alleviation efforts amidst evolving economic conditions. (Table 2) The Gini coefficient, a measure of income inequality, illustrates the distribution of wealth within Russian society. A rising Gini coefficient signifies widening inequality, which can have far-reaching implications for social cohesion and economic stability. Analysis of the Gini coefficient trend reveals [insights into income distribution dynamics, policy effectiveness, etc.]. Textboxes for General Concepts: 1. Inequality of Outcome (Vertical) vs. Inequality of Opportunity (Horizontal): * Inequality of Outcome pertains to disparities in income and wealth, while Inequality of Opportunity encompasses factors like ethnicity, family background, and gender, influencing access to resources and opportunities. 2. Quantiles and Quantile Ratios: * Quantiles divide the population into groups for comparative analysis, such as quartiles, quintiles, or deciles. Quantile ratios highlight disparities by comparing average incomes between the highest and lowest quantiles. Progression to Next Themes: Having examined poverty trends and inequality metrics in Russia, the analysis now transitions to deeper exploration. Subsequent sections will delve into specific dimensions of poverty, such as regional disparities and socio-economic determinants. By integrating data-driven insights with theoretical frameworks, a holistic understanding of poverty and inequality in Russia emerges