Determine the cost to the government of buying firms

Assignment Help Business Economics
Reference no: EM132246776

Consider a market where supply and demand are given by QXS = -14 + PX and QXd = 76 - 2PX. Suppose the government imposes a price floor of $35, and agrees to purchase and discard any and all units consumers do not buy at the floor price of $35 per unit.

a. Determine the cost to the government of buying firms' unsold units.

$  

b. Compute the lost social welfare (deadweight loss) that stems from the $35 price floor.

$

Reference no: EM132246776

Questions Cloud

Name three other types of value a person : Beside economic value, name three other types of value a person might assign to an object or circumstance.
What is the probability of getting blackjack in problem : Blackjack achieved if 2 cards counts total 21 points. What is the probability of getting blackjack in this problem?
Determine the most appropriate leadership style : PMP589 Determine the most appropriate leadership style (e.g., directive, consultative, participative, or delegative) in a project environment to manage.
Calculate the price elasticity of demand at that point : This year's harvest is 10 million bushels. Calculate the price elasticity of demand at that point.
Determine the cost to the government of buying firms : Suppose the government imposes a price floor of $35, and agrees to purchase and discard any and all units consumers do not buy at the floor price of $35 per
Explain how the message was encoded : Explain how the message was encoded and explain the relationship to construction of shared meaning. Explain how a channel or channels were used to transmit.
Find the marginal utility for each function mathematically : 1. Find the marginal utility for each function mathematically 2. What is the economic difference between the two utility functions?
How has the world of data analytics altered the design : How has the world of data analytics and the concept of business intelligence altered the design principles of database warehouses?
Find how much each firm produces and each firm profit : (a) Find how much each firm produces and each firm's profit when the other firm produces 60 units,

Reviews

Write a Review

Business Economics Questions & Answers

  What is the equivalent value of series

Consider a series of end-of-period CFs spanning 2046-2053, which increase at a 1% rate each period. The amount of the first CF in the series is $92. The interest rate is 3%. What is the equivalent value of this series at the beginning of 2046?

  What is the economic service life of the investment

A company spent $172,000 to upgrade some machines. What is the economic service life of the investment?

  Determine the efficient amount of steel production

Externalities. Consider the example of the perfectly competitive steel firm from class. The firm takes the market price p = $35 (per unit of steel) as given and chooses quantity q (units of steel) to maximize its profits. The firm has increasing (pri..

  What is the variable cost per unit

Night Shade Inc. (NSI), manufactures biotech sunglasses. The variable materials cost is $9.64 per unit, and the variable labor cost is $8.63 per unit.

  What is chipotles short run total cost function

Suppose production function for burritos at Chipotle is Q =4k^1/2 L^1/2.They currently own 4 units of capital and are not able to change this during the short run. The rental rate of capital is $10 and the wage rate is $20. What is Chipotle's short r..

  Illustrate what is the mrts

Convert the production function into its normal form. Illustrate what is the MRTS, if price of labour is $120 and the price of capital is $200?

  Passed to mandate minimum wages

Why do you believe legislation is passed to mandate minimum wages, when evidence, such as cited in Macpherson's article exists?

  Qqhere is my question i need help with monopoly in the

qq.here is my question i need help with monopoly in the market for news. the cnn is considering offering articles to

  Illustrate what prevents other firms from directly competing

Suppose Firm X is a monopolist and is receiving positive economic profits. Illustrate what prevents other firms from directly competing away the profits.

  Discuss what the part of the model of the market

Your first paragraph should discuss what the part of the model of the market gave you the biggest fits (but it cannot be "everything"). In this paragraph, include specifics about what it is that you don't understand as well as you would like. 2. In t..

  What is the appropriate cost of capital to evaluate

What is the appropriate cost of capital to evaluate the? business?

  Calculate the four-firm concentration ratio

An industry consists of three firms with sales of $310,000, $725,000, and $405,000. Calculate the Herfindahl-Hirschman index (HHI). Calculate the four-firm concentration ratio (C4).

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!

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