Question
The total cost function for a typical coal producer is: TC = 50, 000 + 0.2 Q^2 where Q is measured in railroad cars per
The total cost function for a typical coal producer is: TC = 50, 000 + 0.2 Q^2 where Q is measured in railroad cars per year. The industry consists of 50 identical producers. The market demand curve is:Qd = 140, 000 - 500 P where P is the price of coal per railroad car. The market is regarded as perfectly competitive.
Calculate the short-run equilibrium quantity in the market.
Caleuthe short-run equilibrium price in the market.
Calculate the total producer surplus at the market equilibrium.
Calculate the total consumer surplus at the market equilibrium. The Federal government is considering fxing the price of coal at $130 per carload
.Calculate the producer surplus at the $130 price.
Calculate the consumer surplus under the $130 price.
Calculate the deadweight loss of the $130 fixed price.
Given the $130 price, calculate the profit level at one firm in the coal industry.
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