A firm could produce three units if it decides the market price makes it valuable enough to do so. The marginal cost of producing the first unit is $10. The marginal cost of producing the second unit is $15. The marginal cost of producing the third unit is $20. If the market price per unit is constant at $17, what is the total producer surplus on the units the seller will produce? (round your final answer to two decimal places if necessary)
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- When the price of gasoline was very high in thesummer of 2008, several U.S. presidential candidates proposed implementing a national price ceiling to keep fuel affordable. How would this policyhave affected producer and consumer surplus?How would it have affected total surplus?what is producer surplus and how is it measured? What is the relationship between the cost to sellers and the supply curve? All else being equal, what happens to producer surplus when the price of a good rise?Suppose that the figure given below depicts the demand for grape oll, which can be purchased in any quantities and sold at any price. Price per litre 6 5 A 3 2 1 0 D 100 200 300 400 500 600 700 800 900 1000 Quantity per period a) What is the total consumer surplus if the price per litre is $3.0? (Hint: Area of a triangle?) Total consumer surplus: $ b) What is the total consumer surplus if the price per litre is $1.0? Total consumer surplus: $
- 7.) Suppose there are four painters who can paint a house: Vincent, Claude, Pablo, and Andy. Each can paint either one house or no houses. Their costs of painting a house are given in the following table: Cost to Paint Painter House Vincent $900.00 Claude 800.00 Pablo 600.00 Andy 500.00 What will total producer surplus be if the price to paint a house is $750? a.) $200 b.) $400 c.) $600 d.) $800 8.) Consider a simple economy with a single good: bread. There are 5 loaves of bread and two potential consumers of bread: Moose and Squirrel. Moose likes consuming as much bread as possible, and Squirrel likes consuming as little bread as possible. Which of the following allocations is Pareto efficient? a.) 0 loaves of bread for Moose, 5 loaves of bread for Squirrel b.) 2 loaves of bread for Moose, 2 loaves of bread for Squirrel c.) 0 loaves of bread for Moose, 0 loaves of bread for Squirrel d.) 5 loaves of bread for Moose, 0 loaves of bread for Squirrel 9.) Suppose that Ty, George, Joe, and…Price per mile B C D---- E F H a Supply Demand Miles of taxi service per day Figure 6.6 Refer to Figure 6.6, which shows a market for taxi medallions. If the number of taxi licenses is reduced from Q₂ to Q₁ OA. the gain in consumer surplus equals the loss in producer surplus. B. the gain in producer surplus equals the loss in consumer surplus. OC. the gain in consumer surplus is greater than the loss in producer surplus. OD. the gain in producer surplus is smaller than the loss in consumer surplus.The local weather treatment facility, a price taker, is able to supply the first gallon of water for $0.01. The second for $0.02. The third for $0.03 and so on. The current price of water is $0.06 per gallon. - choose each of the following that are correct a. Producer surplus will rise if the market price increases to $0.07 per gallon b. This water treatment facility will choose to produce seven gallons of water c. The firm will enjoy higher producer surplus if it unilaterally raises prices d. This water treatment facility will earn $0.15 in producer surplus
- What is producer surplus, and how is it measured? What is the relationship between the cost to sellers and the supply curve? 2. Why do flounder populations face the threat of extinction while goidfish populations are in no such danger The government often intervenes when private markets fail to provide an optimal level of certain goods and services. For example, the goverment imposes an excise tax on gasoline to account for the negative extemality that deivers impose on one another. Why might the private market not reach the socially optimal level of traffie on the road without the help of goverament? A key difference berween accountants and economists is their ditferent treatment of the cost of capital Does this cause an secouutants estumate of total costs to be higher or lower than an economist's estimate? ExplainHow would you draw a graph when tax on ammunition is imposed on the supplier. Please indicate consumer surplus, producer surplus, government revenue, and deadweight loss on the grapgh.You currently have a television that you want tosell. You can either pick a price and try to sell it ata yard sale or auction it off on eBay. Which methoddo you think will yield a higher producer surplus?Why?
- A price floor tries to keep prices and, when a price floor is non-binding, it's put at a price the equilibrium price. low; above O high; below low; below O high; aboveWhich of the following statements is false regarding Producer Surplus? Time le O a. Producer surplus is the net economic benefit received by producers O b. Producer surplus is the difference between market price and marginal cost O c. Producer surplus is maximum under unregulated markets when there are sales taxes Od. Producer surplus is the area below the market price and above the supply curve Oe. Producer surplus is the difference between the total surplus and consumer surplususe diagramsa. What is the effect on the equilibrium price and quantity traded in market of theintroduction of a new technology that reduces costs of production for all firms?b. What is the effect on the equilibrium price and quantity traded in a market of a changein tastes that reduces the demand for the product?c. What is the effect on the equilibrium price and quantity traded in a market of theimposition of a tax per unit sold on suppliers?d. What is the effect on the equilibrium price and quantity traded in a market of thepayment of a subsidy per unit sold paid to suppliers?