User Account

All Pages

Calculate the consumer surplus

Assignment Help Macroeconomics
Reference no: EM131284392

Abacus, Inc. provides accounting services to a wide variety of customers, most of whom have had a business association with Abacus for more than five years. These long- standing relationships give Abacus a unique ability to provide comprehensive accounting services for its customers-no other firm could provide the same services because they lack data about past performance. Abacus' demand and marginal revenue curves are:

P =10,000-10Q M R = 10, 000 - 20Q

Abacus' marginal cost of service is:

MC = 5Q

  1. If Abacus charges a uniform price for a unit of accounting service (Q), what price must it charge per unit, and how many units must it produce per time period in order to maximize profit? Calculate the consumer surplus.
  2. If Abacus could enforce first-degree price discrimination, what would be the lowest price that it would charge and how many units would it produce per time period?
  3. With perfect price discrimination and ignoring any fixed cost, what is total profit? How much additional consumer surplus is captured by switching from a uniform price to first-degree price discrimination?

Reference no: EM131284392

Questions Cloud

Evaluate the different types of technology available : Illustrate the difference between technical innovation and organizational effectiveness. Evaluate the different types of technology available, and recommend the most appropriate technology for your organization.
Describe competency models, case-based decision making : Describe competency models, case-based decision making, and systems thinking.Describe why the competencies of the past are not compatible with the competencies of the future for the global organization.
Write an email to tell employees about a product recall : As the vice president of public relations at GM, you just wrote the following news release about vehicle recalls. Next, you will work with the vice president of human resources to communicate this news to employees.
Write the heat equation and boundary conditions : Write the heat equation and boundary conditions for steady state two-dimensional conduction in the rectangular plate shown.
Calculate the consumer surplus : If Abacus charges a uniform price for a unit of accounting service (Q), what price must it charge per unit, and how many units must it produce per time period in order to maximize profit? Calculate the consumer surplus.
Analyze the selection process of the company : Evaluate the effectiveness of the company's recruiting efforts and suggest two (2) recommendations for improvement.Analyze the selection process of the company you researched and recommend two (2) areas for improvement.
Write heat equation and boundary conditions for steady state : Heat is generated at a rate qc in a spherical shell with inner radius and outer radius Heat is added at the outer surface at a uniform flux The inside surface is maintained at uniform temperature. Write the heat equation and boundary conditions fo..
Write a memo announcing employee layoffs : Write the memo to communicate the decision clearly and help employees understand and accept the message.
Analyze and discuss possible solutions to these challenges : Analyze and discuss possible solutions to these challenges. Discuss how this topic could help to promote or grow the professional field of health information management/informatics.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd