Given demand equation P=50-2Qd and supply equation P=10+2Qs calculate. (a) consumer surplus (b) producer surplus (c) total surplus assuming pure competition
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Given demand equation P=50-2Qd and supply equation P=10+2Qs calculate.
(a)
(b) producer surplus
(c) total surplus
assuming pure competition
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- The accompanying graph shows the short-run demand and cost situation for a price searcher in a market with low barriers to entry. Price (dollars) 24 10 8 MC 1 I I I I ATC MR 30 ++ II II II 45 50 Quantity/time The firm will maximize its profit at a quantity of D units.The demand and supply equations for product A are given by the following equations: ? = 40 − 5? ? = 10 + 2.5? 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 equilibriumM10. A theatre charges 12$ per tickets for musical shows. Average attendance at these shows is 16,000. However, last year they charged 13$ and the average attendances were 13,5000. Required Assuming attendance to be purely price dependent. What is demand function for the theatre?
- the total surplus at the profit-maximizing result is $____.The area under the demand curve but above the equilibrium price is called: a) consumer surplus. b)producer surplus. c)accounting profit. d)economic profit.The market demand for electricity in a city has the following schedule: Price Total Quantity (kwh) Average Marginal Revenue Revenue Revenue ($/kwh) 14 12.50 1 11 9.50 8 4 6.50
- QUESTION 6 The profit-maximizing point for suppliers in a competitive market is where MR = MC. True False1. A manufacturer estimates that D(p)=3000e0.05p units of a particular good will be sold at market price of p cedis per unit. Determine the market price that will result in marginal revenue of zero. 2. A manufacturer estimates that q = 800/30 – p units of a commodity are demanded when cedis per unit are charged. a. Express the price elasticity of demand as function of p . b. Calculate the price elasticity of demand when p=10. Interpret the result. c. Find the price at which the price elasticity of demand is unit-elastic. 3. An auto maker estimates that when q units of its saloon cars are sold in a day, its profit in millions of cedis is modelled as P(q) =100+25In 20 Find the 2 number of cars that should be produced and sold to maximise profit.The figure depicts the demand curve of a firm producing cars, together with its marginal cost, average cost, and isoprofit curves. Based on the figure, which of the following statements is correct? Price, MC ($) 8,000 5,400 4,100 2,820 100 0 0 34 50 Quantity of cars, Q MC Isoprofit AC 100 O The consumer surplus in the profit-maximizing outcome is $105,300. The producer surplus in the Pareto efficient outcome is $133,960. O The deadweight loss in the profit-maximizing outcome is $20,640. O The firm's profit in the Pareto efficient outcome is $100,000.
- Skinhead Ltd Co. has a competitive market and faces costs of production as follows: Quantity TFC (RM) | TVC (RM) TC (RM) ATC AFC AVC MC (RM) (RM) (RM) (RM) 100 1 100 50 2 100 70 3 100 90 4 100 140 5 100 200 100 360 (а) (b) Calculate the company's AFC, AVC, ATC, and MC at each level of production. The price for Skinhead product is RM50. Calculate the TR, MR, AVC, AFC and ATC for Skinhead. (c) (d) Calculate the profit for Skinhead at each level of production. From the information in 1(c), Skinhead seems is not able to generate profit at each level of production. The CEO decides to shut down operations. Explain whether the company should shut down operation or continue to run.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 equilibriumThe millions of dollars already spent on development of new computer software (which will be protected by copyright/patent laws) ____________. a) will NOT be a factor in determining the profit maximizing price the firm charges for that software b) represents a variable cost of production c) is an example of marginal costs d) must be considered when deciding whether to practice price discrimination