Calculate the consumer and producer surplus

Assignment Help Microeconomics

Reference no: EM13701178

Question 1: Given the following demand, supply and marginal revenue curves, calculate the equilibrium output and price under Perfect Competition, Monopoly, and Cournot Duopoly. In addition, calculate the consumer and producer surplus in each market and discuss the efficiency implications of the different market structures.

a. Q = 820 - 1000P

b. P = -Q/1000 + .82

c. MR = Q/500 + .82

d. MC = 0.28

e. Cournot:

i. TR₁ = P*q₁ = q₁² + q₁*q₂/1000 + 0.82q₁

ii. TR₂ = P*2 = q₂² + q₂*q₁/1000 + 0.82q₂

iii. MR₁ = 2q₁ + q₂/1000 + 0.82

iv. MR₁ = 2q₂ + q₁/1000 + 0.82

Question 2: Utilizing the following functions determine the equilibrium output and price for a perfectly competitive equilibrium. In addition, calculate the consumer and producer surplus, and the deadweight loss after a tax on producers of $1000 is imposed.

a. Demand: P=10000-100Q

b. Marginal Cost: MC=$2500

Question 3: Given the following production function, factor prices, and the firm's input demand functions, derive the firm's total cost function and least cost combination of K and L.

a. In addition, calculate the change in the least cost combination when wages increase to$5. Ensure to show your results graphically. (Min TC Given Q)

b. Finally, using the total cost from the original producer solution, calculate the change in Q, K, and L from the wage increase. (Max Q Given TC)

c. Q=K*L

d. L* = (Q*r/w)^0.5 & K* = (Q*w/r)0.5

e. L* = TC/2*w & K* = TC/2*r

i. w=$4

ii. r=$13

iii. Q=200

Reference no: EM13701178

Questions Cloud

Find the acceleration and the average velocity : A body with initial velocity 8 m/s moves along a straight line with constant acceleration and travels 2.7 m/s in 3 s. For the 40 s interval, find the acceleration, the average velocity, the final velocity

How long does it take for the eagle to reach the water : An eagle perched on a tree limb 19.5 m above the water spots a fish swimming near the surface. How long does it take for the eagle to reach the water

What is the net force acting on the rocket as it is rising : A rocket with mass 1000kg accelerates upwards at a rate of 20m/s2. What is the net force acting on the rocket as it is rising

Evaluate the magnitude of the electric field : A small object, which has a charge q = 8.0C and mass m = 4.9 x 10-5 kg, is placed in a constant electric field. Determine the magnitude of the electric field

Calculate the consumer and producer surplus : Calculate the consumer and producer surplus, and the deadweight loss after a tax on producers of $1000 is imposed - Calculate the change in the least cost combination when wages

Determine her initial velocity : Diver springs upward from a board that is 2.87 meters above the water. Determine her initial velocity

Find the total duration of the rockets flight : A model rocket blasts off and moves upward with an acceleration of 11m/s2 until it reaches a height of 30m, What is the total duration of the rocket's flight

What remainder will be obtained by dividing the same number : 3. The sum of two numbers is 75 and their difference is 20. Find the difference of their squares. 2. A number when divided by 899 gives a remainder 63. What remainder will be obtained by dividing the same number by 29.

Evaluate what the magnitude of the electrostatic force : A 8.01 nC charge is located 1.81 m from a 4.06 nC point charge. Find the magnitude of the electrostatic force that one charge exerts on the other

User Account

All Pages