Advanced analysis-dollar value of the deadweight loss

Assignment Help Business Economics

Reference no: EM131081103

(Advanced Analysis) Given the following diagrams: Q1 = 20 bags. Q2 = 15 bags. Q3 = 27 bags. The market equilibrium price point b is $45 per bag. The price at point a is $85 and the price at point c is $5 per bag. The price at point d is $55 and the price at point e is $35 per bag. The price at point f is $59 and the price at point g is $31 per bag. Apply the formula for the area of a triangle (Area = ½ × Base × Height) to answer the following questions. a. What is the dollar value of the total surplus (producer surplus plus consumer surplus) when the allocatively efficient output Q1 level is being produced? $ How large is the dollar value of the consumer surplus at that output Q1 level? Instructions: Round your answer to one decimal place. $ b. What is the dollar value of the deadweight loss when output level Q2 is being produced? Instructions: Round your answer to one decimal place. $ What is the total surplus when output level Q2 is being produced? Instructions: Round your answer to one decimal place. $ c. What is the dollar value of the deadweight loss when output level Q3 is produced? $ What is the dollar value of the total surplus when output level Q3 is produced?

Reference no: EM131081103

Questions Cloud

Maintaining competitive situations in the global market : Analyze financial options to assist in maintaining competitive situations in the Global Market and the efforts to harmonize the accounting standards across countries decison making; what are some?

The section entitled finding real wealth : Summarize in a couple of paragraphs the main points of Chapter 10 ("A Cancerous Culture") by referencing (a) the quote on pl 99 from Donaella Meadows; (b) the section entitled "Finding Real Wealth"; and (c) the section about Maslow's hierarchy of nee..

Economic growth and economic development : Explain the distinction Herman Daly makes between economic growth and economic development. Illustrate with examples. Why does Daly claim only the latter is sustainable?

Find firm that you believe has achieved economies of scale : Find a firm that you believe has achieved economies of scale in recent years. Given the determinants of economies of scale (labor specialization, managerial specialization, efficient capital, etc.), which determinant do you believe is most responsibl..

Advanced analysis-dollar value of the deadweight loss : (Advanced Analysis) Given the following diagrams: Q1 = 20 bags. Q2 = 15 bags. Q3 = 27 bags. The market equilibrium price point b is $45 per bag. The price at point a is $85 and the price at point c is $5 per bag. What is the dollar value of the deadw..

Write down the jordan canonical form of a : Write down the Jordan canonical form of A.

Evaluate the reliability and validity of your job analysis : Evaluate different performance appraisal methods that might be applied to your chosen job. Explain the various benefits and vulnerabilities of each performance appraisal method.

Considering investing in start up project : You are considering investing in a start up project at a cost of $100,000. you expect the project to return $500,000 to you at the end of seven years. Given the risk of this project, your cost of capital is 20%. What is the npv for this project?

To measure the peak value of an ac wave : 6. A technician uses an oscilloscope to measure the peak value of an AC wave. He tells you that the voltage has a peak value of 100 V. What is the rms value of the voltage?

User Account

All Pages