User Account

All Pages

Determine producers surplus at the market equilibrium

Assignment Help Microeconomics
Reference no: EM131855890

Assignment

1. Let the market demand for a product be described by P = 20 - 0.02*Q. The market supply curve is P = 10 + 0.03*Q.

a. Calculate the market equilibrium price and output under perfect competition.

b. Determine consumer's surplus at the market equilibrium. Determine producer's surplus at the market equilibrium.

c. Determine the arc elasticity of demand for a one dollar ($1.00) increase in the market equiibrium price (i.e., the price increases one dollar from the price you determined in part a).

d. A single perfectly competitive firm operating in the market described above has the following average total cost curve: ATC = 0.8*Q. Determine the profit maximizing quantity for the firm. Determine the firm's short run economic profit.

Reference no: EM131855890

Questions Cloud

Calculate accumulated depreciation over six years : Genetic Insights has a tax rate of 30%. The asset is sold at the end of six years for $3,746. Calculate accumulated depreciation over 6 years
Describe two challenges that are unique to it audit projects : Describe two (2) challenges that are unique to IT Audit projects. Suggest an approach to mitigate each challenge you selected.
What is the pathophysiology of hypertension : What is the pathophysiology of hypertension and congestive heart failure in relation to COPD?
What is marketing intelligence : What is Marketing Intelligence and how can companies improve their marketing intelligence systems
Determine producers surplus at the market equilibrium : Determine consumer's surplus at the market equilibrium. Determine producer's surplus at the market equilibrium.
Beginning of the current golf season : Ms. A. is an apparently healthy 26-year-old white woman. Since the beginning of the current golf season, Ms. A has noted increased shortness
Investment in common stock of waste recycling firm : You are a part-time financial advisor. A client is considering an investment in common stock of a waste recycling firm.
How would you bring your facility into compliance : Read the article in the e-Activity. It suggests that many medical facilities may have been complacent about data security.
What are two challenges that can occur in a practice change : What are two challenges that can occur in a practice change, like the RN Capstone Project, when there is failure to identify key stakeholders?

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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