Additional Problem #3
Price Discrimination Cost Structure MC = 20 Revenue Structure P = 80 – Q
Competitive
Imperfect Comp.
1st Degree Price Discrimination
2nd Degree Price Discrimination $50, $30 & $20
Quantity __________ __________ xxxxxxxxx xxxxxxxxx
Price __________ __________ xxxxxxxxx xxxxxxxxx
Consumer Surplus __________ __________ ________ ________
Producer Surplus __________ __________ ________ ________
Total Surplus __________ __________ ________ ________
Dead-weight loss __________ __________ ________ ________
Additional Problem #3 Price Discrimination Cost Structure MC = 20 Revenue Structure P = 80 –...
Additional Problem #2 Base Model Outcome and Evaluation Cost Structure TC = 2.5Q2 + 10 Revenue Structure Q = 10 - .4P Evaluation: 6. Quantity 7. Price 8. Consumer Surplus 9. Producer Surplus 10. Total Surplus 11. Dead-weight Loss
How do you do these problems? Can you please help me? 2nd Degree Price Discrimination Problem Suppose there are 100 wealthy consumers, who value the 1" unit of a good at $15 and a 24 unit at S10. There are also 100 moderate income consumers, who value only the 1" unit at $12. For the producer, AC = MC = 6. There are no fixed costs. 1. No price discrimination. One unit sells for $15. 12. No price discrimination. One...
Additional Problem #3 Quota Given the following Demand and Supply functions: Qd = 500 – 20P Qs = 80P – 400 Calculate quantity, price, consumer surplus, producer surplus, total surplus and dead-weight loss at equilibrium. Calculate quantity, price, consumer surplus, producer surplus, total surplus and dead-weight loss at a quota of 240 units.
P = 520 – 2Q And where marginal costs are expressed via: MC = 100 + 2Q Within a perfectly competitive market calculate the: a. Consumer surplus b. Producer surplus c. Total surplus Now, consider the market changes to a monopoly, calculate the: a. Consumer surplus b. Producer surplus c. Dead weight loss (otherwise known as the loss to economic surplus)
Given: Q = 50 - P and MC = 4+2Q. a) Determine the equilibrium price and quantity if this industry were purely competitive. b) Determine the equilibrium price and quantity if this industry were a profit tot maximizing monopolist.com broc) Determine the dollar value of the deadweight loss if this were a monopolized industry by completing the following table: Consumer Surplus Producer Surplus ! Total or Pure Competition g Y upeve n TOO THOD a 10 U Monopoly Monopoly til...
3. If we place a price ceiling of $15 do we have a surplus or shortage? By how much? Label producer surplus, consumer surplus, and dead weight loss. What is the quantity sold? Calculate the area of consumer surplus, producer surplus, and dead weight loss. $60 $40 $20 20 40
P $20 Domestic Producers S10 Domestic Consumers 20 10 Use the graph above for a Tariff. Equilibrium is point A at (10,10) 10. World price is at S3, calculate the additional producer surplus. 11. World price is at $3, calculate the loss of producer surplus. 12. World price is at S3, calculate the additional consumer surplus. 13. World price is at S3, calculate the loss of consumer surplus. 14. World price is at S3, calculate the total producer surplus. 15....
3. If we place a price ceiling of $15 do we have a surplus or shortage? By how much? Label producer surplus, consumer surplus, and dead weight loss. What is the quantity sold? Calculate the area of consumer surplus, producer surplus, and dead weight loss. $60 $40 $20 |
7.25 = 100 = lauld - TU PS 20 40 60 3. If we place a price ceiling of $15 do we have a surplus or shortage? By how much? Label producer surplus, consumer surplus, and dead weight loss. What is the quantity sold? Calculate the area of consumer surplus, producer surplus, and dead weight loss. $60 $40 $20 20 40 60 e
Consider a market with the following demand curve: ? = 200 − 2? MC=20 Assume ? > ???. a. Find the perfectly competitive price and quantity. ??? = _____________, ??? =_____________ b. Find the monopoly price and quantity. ?? = _____________, ?? =_____________ c. Find the loss of consumer surplus in monopoly vs. perfect competition. ?????? =_____________ d. Find the producer surplus in monopoly. ?????????? =_____________ e. Find the deadweight loss in monopoly. ??????????? =_____________