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The table given below depicts the metal keg industry, which is perfectly competitive. (All units, apart from price, are in thousands per week.) Quantity Price
The table given below depicts the metal keg industry, which is perfectly competitive. (All units, apart from price, are in thousands per week.) Quantity Price ($) Demanded TR ($ ) MR ($ ) MC ($) AC ($) TC ($ ) TH ($) 30 O 27 -27 29 1 29 29 18 45 45 -16 28 2 56 27 10 27.50 55 1 27 3 81 25 6 20.33 61 20 26 4 104 23 13 18.50 74 30 25 5 125 21 14 17.60 88 37 24 6 144 19 19 17.83 107 37 23 7 161 17 23 18.57 130 31 22 8 176 15 27 19.62 157 19 21 9 189 13 32 21 189 Oa) Complete the table given above. b) What are the equilibrium values of price, quantity traded, and total profit (or loss) in the industry? (Recall that the supply for a perfectly competitive industry is the same as the marginal cost.) Price: $[ : Quantity: thousands Profit/loss: $[ thousands c) Suppose, instead, that the table depicts a monopolist. What will be the profit-maximizing price, quantity, and profits? Price: $ : Quantity: thousands Profit/loss: $ thousands d) Now, suppose that the government is not satisfied with the monopolist's situation and decides to impose a lump-sum monopoly tax of $2,400. What will be the price, quantity, and profits? Price: $[ : Quantity: [ thousands Profit/loss: $ thousands e) Instead of the tax, the government decides to impose a socially optimum price. What will be the price, quantity, and profits? Price: $ : Quantity: thousands Profit/loss: $ thousands f) Finally, suppose that instead of the socially optimum price, the government imposes a fair-return price. What will be the price, quantity, and profits? Price: $ : Quantity: thousands Profit/loss: $ thousands
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