Suppose a corn producer tries to maximize the total revenue P × Q, where P is...
Suppose a corn producer tries to maximize the total revenue P × Q, where P is the price of corns ($/bushel) which the producer takes as given, and Q is the total quantity (bushels). The producer is facing the following market demand: Q = 100 − 2P. What is the optimal level of corns that the producer produces? What is the corresponding total revenue? (Hint: setup as a constrained maximization problem and take the first order condition.)
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Suppose a corn producer tries to maximize the total revenue P ×
Q, where P is...
If Q = 400 – 2P, at what price is revenue maximized at? For the demand...
If Q = 400 – 2P, at what price is revenue maximized at? For the demand equation P = 36 - 2Q, what Price will maximize total revenue? If TC=40+6QTC=40+6Q and EP=−3EP=−3 what is the optimal price to be charged? If TC=75+15QTC=75+15Q and EP=−2EP=−2 is P=$30 the optimal price?
Consumer & Producer Surplus If QP = 450 - P and Q* = 2P - 150:...
Consumer & Producer Surplus If QP = 450 - P and Q* = 2P - 150: a. Solve for the market equilibrium price (P) and market equilibrium quantity (Q*). (4 points) b. Solve for consumer surplus, producer surplus and total surplus. (4 points) 2. Welfare Effects of a Per Unit Tax Given the same demand and supply equations as in question #1, suppose the government imposes a per unit tax of $15: 22 a. Solve for the new equilibrium quantity...
Given the following information for a monopoly firm: Demand: P = 64-4(Q) Marginal revenue: MR =...
Given the following information for a monopoly firm: Demand: P = 64-4(Q) Marginal revenue: MR = 64 - 8(Q) Marginal cost: MC = 2(0)+10 Average total cost at equilibrium is 30 1. At what output (Q) will this firm maximize profit? 2. At what price (P) will this firm maximize profit 3. What is the total revenue (TR) earned at this output level 4. What is the total cost (TC) accrued at this output 5. What profit is earned Assume...
A firm operates in a perfectly competitive market with a price of P = 50 for...
A firm operates in a perfectly competitive market with a price of P = 50 for the product. TVC = 0.5Q3 − 18Q2 + 170Q Q (output) TFC = 300. Write an equation expressing the firm’s total revenue (TR) as function of Q. Write an equation expressing the firm’s total cost (TC), as a function of Q. Write an equation expressing the firm’s profit (π), as a function of Q.Find the first-order condition for the firm’s profit-maximization decision. Find the...
p, think about Find the value of p that will maximize the total revenue when q...
p, think about Find the value of p that will maximize the total revenue when q = 150 - Elasticity. (You will need to find the E, or elasticity formula).
4.16 Algebraically solve for the after-tax equi- librium price and quantity in the corn mar- ket...
4.16 Algebraically solve for the after-tax equi- librium price and quantity in the corn mar- ket if the government collects a specific tax of t $2.40 from customers, as Figure 3.6 illustrates. (Hint: See Solved Prob- lem 3.4.) A panel b of Applying the Silp CHAPTER 3 50 MyEcon Lab Video (b) The specific tax collected from customers shits te demand curve down by t $2.40 from D to D. The (a) The specific tax of t $2.40 per bushel...
Homework 2: Welfare Analysis 1. Let's say that the market for barley in the US is:...
Homework 2: Welfare Analysis 1. Let's say that the market for barley in the US is: Demand function: Q = 4 - VP: Supply function: Q = P-4 where P is price in S/bushel and Q is quantity in millions of bushels sold. Find the equilibrium price and quantity for this competitive market solution and graph it. Let's say that the world price is $7/bushel. Calculate and show graphically the amount produced domestically and the amount consumed domestically Using letters...
Q(p) = 10 + 3p Q(p) = 15 - 2p^2 (2)The following equations describe the market...
Q(p) = 10 + 3p
Q(p) = 15 - 2p^2
(2)The following equations describe the market for commodity X. Q(p) = 10 + 3P.. Q(p) = 15 - 2P .....(2) (a)Which of the two equations is the demand equation and which is the supply equation? Explain. (b) Find the equilibrium price and the equilibrium quantity transacted in this market. (C)Find the price elasticity of demand at equilibrium and comment on how the firm could use this information if it considers...
QUESTION ONE A. Suppose the marginal cost and marginal revenue (in ¢000) for a product produced...
QUESTION ONE A. Suppose the marginal cost and marginal revenue (in ¢000) for a product produced by a company is estimated to be MC = q +35 MR = 560 + 22q-q? Where q is the quantity produced and the firm's break-even is 5 units per week You are Required to 1. determine the total cost and the total revenue function in terms of q. (6 marks) II. estimate the output at which profit is maximize (6 marks) III. calculate...
There is a monopoly producer of smartphones facing the following demand Q = 400 - 2P...
There is a monopoly producer of smartphones facing the following demand Q = 400 - 2P (where Q is # of smartphones). Its cost is given by C = 100Q. (a) What are the equilibrium quantity and price of smartphones sold by the monopolist? (b) If the government imposes an ad valorem tax of 20% on smartphones, what happens to the equilibrium quantity and price? What is the tax revenue collected? What is the tax incidence of this tax? (HINT:...
Consumer & Producer Surplus If QP = 450 - P and Q* = 2P - 150: a. Solve for the market equilibrium price (P) and market equilibrium quantity (Q*). (4 points) b. Solve for consumer surplus, producer surplus and total surplus. (4 points) 2. Welfare Effects of a Per Unit Tax Given the same demand and supply equations as in question #1, suppose the government imposes a per unit tax of $15: 22 a. Solve for the new equilibrium quantity...
Given the following information for a monopoly firm: Demand: P = 64-4(Q) Marginal revenue: MR = 64 - 8(Q) Marginal cost: MC = 2(0)+10 Average total cost at equilibrium is 30 1. At what output (Q) will this firm maximize profit? 2. At what price (P) will this firm maximize profit 3. What is the total revenue (TR) earned at this output level 4. What is the total cost (TC) accrued at this output 5. What profit is earned Assume...
p, think about Find the value of p that will maximize the total revenue when q = 150 - Elasticity. (You will need to find the E, or elasticity formula).
4.16 Algebraically solve for the after-tax equi- librium price and quantity in the corn mar- ket if the government collects a specific tax of t $2.40 from customers, as Figure 3.6 illustrates. (Hint: See Solved Prob- lem 3.4.) A panel b of Applying the Silp CHAPTER 3 50 MyEcon Lab Video (b) The specific tax collected from customers shits te demand curve down by t $2.40 from D to D. The (a) The specific tax of t $2.40 per bushel...
Homework 2: Welfare Analysis 1. Let's say that the market for barley in the US is: Demand function: Q = 4 - VP: Supply function: Q = P-4 where P is price in S/bushel and Q is quantity in millions of bushels sold. Find the equilibrium price and quantity for this competitive market solution and graph it. Let's say that the world price is $7/bushel. Calculate and show graphically the amount produced domestically and the amount consumed domestically Using letters...
Q(p) = 10 + 3p
Q(p) = 15 - 2p^2
(2)The following equations describe the market for commodity X. Q(p) = 10 + 3P.. Q(p) = 15 - 2P .....(2) (a)Which of the two equations is the demand equation and which is the supply equation? Explain. (b) Find the equilibrium price and the equilibrium quantity transacted in this market. (C)Find the price elasticity of demand at equilibrium and comment on how the firm could use this information if it considers...
QUESTION ONE A. Suppose the marginal cost and marginal revenue (in ¢000) for a product produced by a company is estimated to be MC = q +35 MR = 560 + 22q-q? Where q is the quantity produced and the firm's break-even is 5 units per week You are Required to 1. determine the total cost and the total revenue function in terms of q. (6 marks) II. estimate the output at which profit is maximize (6 marks) III. calculate...
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