Question
Suppose Toni is the sole producer of beekeeper kits in a market where government regulations prevent new entrants. Their total cost is given by TC
Suppose Toni is the sole producer of beekeeper kits in a market where government regulations prevent new entrants. Their total cost is given by TC = 4Q+10. The demand curve for these kits is Q^D=202P, where Q measures the number of kits produced each day. A) How many kits should Toni produce to maximize their profit? B) What price (denominated in USD) should Toni charge for their kits? C) How much producer surplus does Toni capture in this market? How much consumer surplus do consumers in the market enjoy? How much deadweight loss exists in the market?
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