Consider a competitive industry with a perfectly elastic supply curve given by p = 20. The demand curve facing this industry is p(q) = 60-q. Find the per-unit tax that will maximize tax revenue to the government.
Q: A firm faces the following average revenue (demand) curve: P = 120 − 0.02Q where Q is weekly…
A: Demand Curve : P = 120 − 0.02Q Cost function : C = 60Q + 25,000 Total revenue = P*Q = 120 Q - 0.02Q2…
Q: Consider a market comprised of three firms. Firm 1 produces and sells 23 units per period. Firm…
A: The following calculations are done below.
Q: Suppose that the average cost to one firm to supply an entire market is less than the average cost…
A: Monopoly refers to a market structure which has only one firm. The firm produces unique product with…
Q: The government of Stratospheria is currently inviting investors to bid for the exclusive right to…
A: Given, P= 55-0.01Q MR = 55-0.02Q MC = AC= RM5 1. If Fun Cable Company gets exclusive right to…
Q: The demand for the product of one firm operating in a perfectly competitive market is ... Group of…
A: please find the answer below.
Q: The upper portion of the kinked demand curve is relatively
A: Find the upper portion of the kinked demand curve is relatively :
Q: Nousaku estimates that the total daily revenue of producing q units of KAGO basket is (R(q) = (102 -…
A: Marginal revenue means the additional revenue earned from selling an additional unit of a good by a…
Q: Suppose that there is "dominant" firm with total cost function of c(q) = 100 + 10q + 0.25q². It…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Firm A sells good X. It faces demand q = 40 - 4P, where P is the price of X. What is Firm A's…
A: Revenue is the additional income that firms earn through the sale of their goods and services.
Q: A monopoly firm is the only seller of a good or service that A) has a perfectly elastic demand. B)…
A: Different forms of market structures differ in their level of competitiveness, ranging from highly…
Q: The government of Stratospheria is currently inviting investors to bid for the exclusive right to…
A:
Q: For a company facing a linear demand curve, revenue is maximized: where the number of customers is…
A: "A demand curve for a commodity indicates an inverse relationship between price of the commodity and…
Q: Which one of the following statements is correct? The demand for the product of a perfectly…
A: (Q)Which one of the following statements is correct? The demand for the product of a perfectly…
Q: The cost function of the fringe firms is TC(q) = 4q, their total capacity is K = 2 units. The…
A: Total cost of the fringe firms : TC1 = 4q Total capacity : K = 2 units Total cost of the dominant…
Q: 40. A firm's shutdown point is the output and price at which the firm's total revenue just equals…
A: 40. False The firm's shutdown point occurs at output and price where Price per unit (Average…
Q: Consider the demand function given by: Q = 350 - 0.5P; Q is output demanded, and P is unit price.…
A: Price elasticity of demand measures the responsiveness of quantity demanded to change in price.
Q: The government of Stratospheria is currently inviting investors to bid for the exclusive right to…
A:
Q: Suppose a producer can manufacture her smartphones at a constant marginal cost of $300. She…
A: According to the Rule of thumb for pricing with an "incremental margin percentage" Incremental…
Q: A firm faces the following average revenue (demand) curve:P = 100 - 0.01Q where Q is weekly…
A: AR = P = 100- 0.01 Q C = 50Q + 30,000 Firm Maximizing Problem: Max π = (100- 0.01 Q)Q - 50Q - 30,000…
Q: Firms should choose to produce on the inelastic portion of the demand to further increase its market…
A: Market power refers to the ability of a firm to profitably raise the market price of a good or…
Q: Suppose the demand for a product X produced by a company AAA is given by the following function: QX…
A: Total revenue is the total amount collected by seller by selling the output at that price i.e. TR =…
Q: A firm faces the following linear inverse demand for its product P = 60 - 2Q. a)Find the firm's…
A: In a monopoly market, a firm optimizes the profit where the marginal revenue is equal to the…
Q: . A firm faces the following average revenue (demand) curve: P = 120 − 0.02Q where Q is weekly…
A: We will answer the first question since the exact one was not specified. Please submit a new…
Q: Total revenue from the sale of X is given by the equation R=100Q-2Q2. Calculate the value of…
A: Total revenue is the amount of money earned from total quantity sold. Marginal revenue is the…
Q: Suppose that a firm is selling a good with a marginal cost of $35. Management estimates demand…
A:
Q: The market demand function of a perfectly competitive market is Q=500-p, and the cost function of an…
A: Given, Q=500-p C(q)=q^3-20q^2+110q
Q: There are n firms in a competitive industry. The market demand function is given by p = 10 – Q. A…
A: Introduction The market demand function has given as p = 10 - q so TR = p . q = (10 - q) q MR = 10 -…
Q: In a perfect competition type of market; price is $250.00, quantity is 10,000, lump-sum tax is…
A: Perfect competition is a market form wherein the firms produce and sell homogenous goods and…
Q: Suppose in a perfectly competitive market with demand and supply as follows: 100 D(q) = %3D S(q) =…
A:
Q: An agricultural seed company has an inverse demand given by: P 120 - 2Q, and a cost function…
A: Given- P=120-2Q-------------1 C =20Q We can calculate : Total Revenue (TR) = PXQ = 120Q - 2Q2 Now,…
Q: Economic Total revenue from the sale of X is given by the equation R=100Q-2Q2. Calculate the value…
A: Answer: Given, Total revenue function: R=100Q-2Q2 Marginal revenue=20 Calculation:…
Q: functions are given as below Q_1=1200-10P_1 Q_2=800-10P_2 Where Q_1 is the domestic quantity: Q_2 is…
A: Demand function of the firm:- Q1=1200-10P1Q2=800-10P2Total cost function=0.05Q2+10000 Where; Q1 is…
Q: market consists of a dominant firm and a number of fringe firms. The followings are the information…
A:
Q: Demand for microprocessors is given by P = 35 – 5Q , where Q is the quantity of microchips (in…
A: In a perfectly competitive market, the profit-maximizing condition is known as the point where…
Q: Agribusiness firm ABC is the only buyer of good X. The demand for X is P-140-2Q, where P is the…
A: The equilibrium price is the only price where the plans of consumers and the plans of producers…
Q: If a single supplier produces such a small portion of the total market output that changes in its…
A: To determine the impact of the change in production by a supplier who supplies very small proportion…
Q: The government of Stratospheria is currently inviting investors to bid for the exclusive right to…
A: Given P = 55 - 0.01Q Marginal Cost (MC) = 5 Marginal Revenue (MR) = 55 - 0.02Q
Q: A typical firms supply curve is perfectly inelastic when the price is below or above the break-even…
A: Infinitely elastic supply means that a good have a price elasticity of supply value equal to…
Q: The government of Stratospheria is currently inviting investors to bid for the exclusive right to…
A: Hey, Thank you for the question. According to our policy we can only answer up to 3 sub parts per…
Q: A firm faces the following linear inverse demand for its product P = 60 - 2Q. a) Find the firm's…
A: Demand: P=60-2Q a)Total Revenue=Price*Quantity TR=P*Q TR=(60-2Q)Q TR=60Q-2Q^2 The total revenue…
Q: The Spacing Guild has a monopoly on space transport. They sell tickets (Q) for seats on starships…
A: Monopoly is the structure of firm where single seller sells the product to large numbers of buyers…
Q: Consider a market with the following demand curve: Q^d=1000-Yxp Assume the marginal cost of the only…
A: Q = 1000 - Yp MC = Q/2
Q: The government of Stratospheria is currently inviting investors to bid for the exclusive right to…
A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…
Q: A market has many small firms and one dominant firm. The market demand is Q = 100 - 5P. The dominant…
A:
Q: Price is set in a market by a dominant firm price leader (L = Leader). Total Market Demand is P =…
A: Given:P = 10,000-5*QT QT= 2,000 - 0.20*PThe dominant firm’s total cost is TCL= 50*QL + 1.5*QL2The…
Q: Suppose that there is a firm which has a monopoly and price per unit P(Q) with the quantity Q is…
A: Given: P(Q) = 100-(1/3)Q, Q ∈ [0,300) TR= P*Q
Q: Q)Total revenue from the sale of X is given by the equation R=100Q-2Q2. Calculate the value of…
A: The above given problem is solved as follows:
Consider a competitive industry with a perfectly elastic supply curve given by p = 20. The demand curve facing this industry is p(q) = 60-q. Find the per-unit tax that will maximize tax revenue to the government.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- The demand for mineral water is P=10 – (2/3) Q and supply function for mineral water isP=1+(1/3)Qa) Find the equilibrium price and quantity and Price elasticities of demand and supply.b) Suppose a unit tax (t) is imposed on suppliers (t= 3TL). Find the new equilibrium.c) Find the price that consumers pay and the price that producers get after the tax.d) What is the burden of the tax on producers and consumers and explain how the tax burden isrelated to elasticities? thank you in advance.In the free-market equilibrium of a perfectly competitive market, the price of the good is 90 dollars and the elasticity of demand and the elasticity of supply values are respectively Ed* = -6.6 and Es* = 4.1 Suppose the government imposes a per-unit tax equal to 10.4 payable by consumers. Calculate the estimate of the price firms charge consumers in the tax equilibrium using the elasticity values provided above. Then enter that price value below.Asap PLEASE ANSWER ALL FAST AND ACCURATELY. I WILL GIVE THUMBS UP/UPVOTE If the elasticity of demand is Ed = 1.5 and the elasticity of supply is Es = 2.5 then, Calculate the pass-through fraction of the tax that is paid by the buyers in the market. Show all formulas that you use. Graphically depict a perfectly competitive firm earning economic losses. Be sure to label all of your curves
- With free entry, supply will be infinitely elastic at the break-even price. True FalseMarket for TVs are perfectly competitive. Assume TV supply is point elastic and upward sloping Government imposes consumer tax upon TVs. If point elasticity of demand is inelastic, is deadweight loss generated by the tax higher or lower relative to where the point elasticity of demand is elastic.very urgent!!! the demand for mineral water is P=10 – (2/3) Q and supply function for mineral water isP=1+(1/3)Qa) Find the equilibrium price and quantity and Price elasticities of demand and supply.b) Suppose a unit tax (t) is imposed on suppliers (t= 3TL). Find the new equilibrium.c) Find the price that consumers pay and the price that producers get after the tax.d) What is the burden of the tax on producers and consumers and explain how the tax burden isrelated to elasticities? thank you in advance.
- The supply of book is perfectly elastic at a price of 200. The demand curve of consumer is given by the function Q=30000000-125000P, suppose that a 80 percent subsidy is imposed on the producer of book. calculate the excess burden resulting from the taxConsider a perfectly competitive market where the demand for the good is given by Q=777-18p, where Q denotes the quantity demanded at price p. On the supply side, the industry supply function is given by Q=-8+6p. The government imposes a per-unit tax on consumers equal to t=6 Derive the market equilibrium in the presence of this tax. Determine the share of the tax paid by producers and enter it below.The demand and supply equations for product A are given by the following equations: P = 40 – 5Q P = 10 + 2.5Q A. Compute the price elasticity of demand at equilibrium B. Compute the price elasticity of supply at equilibrium C. What is the marginal revenue at equilibrium
- Green et al. (2005) estimate that the demand elasticity is -0.47 and the long-run supply elasticity is 12.0 for almonds. The corresponding elasticities are - 0.68 and 0.73 for cotton and - 0.26 and 0.64 for processing tomatoes. If the government were to apply a specific tax to each of these commodities, what incidence would fall on consumers? The incidence of a specific almond tax that would fall on consumers is percent. (Enter numeric responses using real numbers rounded to one decimal place.) eid clothing - Google Search 2 W O stv MacBook Air 80 DII DD esc F1 F2 F3 F4 F6 F7 FB F9 F10 ! @ # $ & 1 2 3 4 6 7 8 Q W E T Y U tab A S D F G H. J caps lock .... このConsider the perfectly competitive market for gasoline. The aggregate demand forgasoline is D (p) = 100 - p. Given the choke price is 100, if the equilibrium price is P25 and the equilibrium quantity is 75 units, what is the consumer surplus?When the perfectly elastic supply curve shifts upwards (increase in price), does producer surplus exist? If so, where does it exist
