I need step by step solution to the following this question asap .I have limited time so please do it quickly with detailed explanation
thanks in advance/Ha
1. The monopolist's problem is:
Differentiating the objective function with respect to the
quantity:
With the tax, the monopolist's problem is:
Solving:
Hence, the monopolist raises price by $20.
Loss in welfare to the monopolist = Earlier profit - new
profit:
I need step by step solution to the following this question asap .I have limited time so please do it quickly with detai...
I need step by step solution to the following this question asap .I have limited time so please do it quickly with detailed explanation thanks in advance/Ha a) A monopolist faces two totally separated markets with inverse demand p=100 – 9a and p=160 – 298 respectively. The monopolist has no fixed costs and a marginal cost given by mc=q . Find the profit maximizing total output and how much of it that is sold on market A and market B...
I need step by step solution to the following this question asap .I have limited time so please do it quickly with detailed explanation thanks in advance/Ha Consider a market with 2 firms where the inverse demand function is given by p=56–24 , where q=9z+q2 . Each firm has a cost function given by c(qi)=8qi , where i={1,2}. a) Compare price level, quantities and profits in this market calculating the Cournot equilibrium and the Stackelberg equilibrium. Draw a graph with...
I need step by step solution to the following this question asap .I have limited time so please do it quickly with detailed explanation thanks in advance/Ha Consider a market with 2 firms where the inverse demand function is given by p=56–24 , where q=9z+q2 . Each firm has a cost function given by c(qi)=8qi , where i={1,2}. a) Compare price level, quantities and profits in this market calculating the Cournot equilibrium and the Stackelberg equilibrium. Draw a graph with...
need step by step solution to the following this question asap .I have limited time so please do it quickly with detailed explanation thanks in advance/Ha b) Assume that the demand curve is given by p=20 and the supply curve is given by p=q. Show in a figure how the producer burden and consumer burden are affected by a tax equal to 5 per unit levied on the producers. Explain. c) Assume that the demand curve for a good is...
Practice Question 4. The inverse demand curve a monopoly faces is p = 30 – Q. The firm's total cost function is C(Q) = 0.5Q² and thus marginal cost function is MC(Q) = Q. (a) Determine the monopoly quantity, price and profit, and calculate the CS, PS and social welfare under the monopoly. (b) Determine the socially optimal outcome and calculate the CS, PS and social welfare under the social optimum. (c) Calculate the deadweight loss due to the monopolist...
I need step by step solution to the following this question asap .I have limited time so please do it quickly with detailed explanation thanks in advance/Ha ( poms) Question 3 Consider the market for the homogenous good "space dust" with the following inverse demand function: p(y) = 12 – y where y is total sold quantity of the good on the market and p(y) is the price for which it sells. Due to Imperial regulations and restrictions there are...
I need step by step solution to the following this question asap .I have limited time so please do it quickly with detailed explanation thanks in advance/Ha Kim has the utility function U(x1,x2=x," x2' and derive expressions for the Marshallian demands for goods x and x2 Can you say anything about the share of income that Kim spends on good x x,? How will this share change with changes in prices p, and p2 4 Set up Kim's maximization problem...
I need step by step solution to the following this question asap .I have limited time so please do it quickly with detailed explanation thanks in advance/Ha Kim has the utility function U(x1,x2) = NU a) Set up the Lagrangian and derive an expression for the marginal rate of substitution and calculate the Marshallian demand for both goods. (9p) b) Are both goods normal goods to Kim? (4p) c) Calculate the price elasticity of demand for both goods at prices...
I need step by step solution to the following this question asap .I have limited time so please do it quickly with detailed explanation thanks in advance/H Q “Europeans work less than North Americans because they face higher tax rates.” Discuss.
How do I solve this problem? 4. Benson's Park is a monopolist in the local camping market in the town of West Anderson. They face an inverse demand curve given by P-400-8Q, where Q is the number of tickets they sell. The park's cost function is C(Q)-100+160 Write down Benson's profit function (2 point) Find the first-order condition for profit maximization. (2 points) Find the profit-maximizing price and quantity, and the maximum profit. (3 points) a. b. c. d. Calculate...