Question 1:

1-For the pair of functions, find the following: a) the equilibrium point without the tax

b) the producers' surplusc) the consumers' surplusd) the equilibrium point with the tax

e) the tax revenue

D(q) = -0.07q + 82,

S(q) = 0.09q + 14,

Amount of tax: $3 tax

2 A publisher faces the following demand schedule for the next novel by one of its popular authors:

PRICE QUANTITY DEMANDED

$100 0

90 100,000

80 200,000

70 300,000

60 400,000

50 500,000

40 600,000

30 700,000

20 800,000

10 900,000

0 1,000,000

The author is paid $2 million to write the book, and the marginal cost of publishing the book is a constant $10per book, such that the cost can be represented as,

C = 20,00,000 + 10Q

a.Compute total revenue, total cost, and profit at each quantity. What quantity would a profit-maximizing publisher choose? What price would it charge?

b.Compute marginal revenue. (Recall that MR = TR/Q.)

1-You've been hired byNexreg Complianceto calculate measures of costs and revenue. Given the data they have provided you with (see table), compute the following:

a.Total Revenue (TR) at each Quantity (Q) level

b. Marginal Revenue (MR)

c. Marginal Cost (MC)

d. Profit at every quantity level

e. Fixed Costs