![[1] INote that AC in the Figure below is ATC] For the following perfectly competitive industry (market) and firm below, assum](http://img.homeworklib.com/images/c029c90a-9bfb-4dbc-ac94-abf832cccbe7.png?x-oss-process=image/resize,w_560)
![possi Country If they trade 3.] Show graphically and calculate numerically the consumer surplus (CS), producer surplus (PS),](http://img.homeworklib.com/images/138c0327-23c1-46cd-a317-64114155f9b1.png?x-oss-process=image/resize,w_560)
possi Country If they trade 3.] Show graphically and calculate numerically the consumer surplus (CS), producer surplus (PS), and the deadweight loss where Q1 150, Q2 430, Q3 770, Dntercept $73.00, Sintercept 0, and P2 $51.00 in the diagram below for: a.) a price floor at P, $65.00 b.) a price ceiling at P3 $45.00 1 Supply Surplus Price floor due to P price support Qs>QD P Price ceiling due to Shortage Ps Demand Qo Qs price control [4]
Homework Answers
a> Total revenue would be p1 x q1 = $6.8 x1200 = 8160
b> Firm's total average cost would be p2= $3.8
It is so because at that point AC touched the horizontal line p2.
c> Profit would be $(6.8-3.8)x1200=$3600
d> It is a profit because the profit is greater than zero.
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[1] INote that AC in the Figure below is ATC] For the following perfectly competitive industry...
Figure 14-4 The figure below depicts the cost structure of a firm in a competitive market...
Figure 14-4 The figure below depicts the cost structure of a firm in a competitive market Price „ATC Ps MC 1 AVC 1 1 11 VIL P2P 1 Q1 Q2 Q3 Q4 Quantity - 34. Refer to Figure 14-4. When market price is P2, a profit-maximizing firm's losses can be represented by the area a. (P3-P) x Q2. b. (P2 - P.) ® Q2 c. At a market price of P2, the firm does not have losses. d. At a...
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Figure 14-4 The figure below depicts the cost structure of a firm in a competitive market....
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Figure 14-4 The figure below depicts the cost structure of a firm in a competitive market Price „ATC Ps MC 1 AVC 1 1 11 VIL P2P 1 Q1 Q2 Q3 Q4 Quantity - 34. Refer to Figure 14-4. When market price is P2, a profit-maximizing firm's losses can be represented by the area a. (P3-P) x Q2. b. (P2 - P.) ® Q2 c. At a market price of P2, the firm does not have losses. d. At a...
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Figure 14-4 The figure below depicts the cost structure of a firm in a competitive market. Price ATC MC OPS Y 111 AI XAVC II- VIII NA Avi P2P.Erz ii Q1 Q2 Q3 Q1 Quantity 32. Refer to Figure 14-4. When market price is Ps, a profit-maximizing firm's profits can be represented by the area a. Ps x Q3. b. (Ps - P3) * Q2 c. (Ps - Pq) x Q3. d. When market price is Ps there are no...
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