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You live in a small town with only one grocery store. The demand curve for food in your town is given by -1/5Q. the grocery store has a total curve given by TC = 50 + 1.25Q
A) What is the profit maximizing price and quantity of food if the firm charges the same price to everyone? How much profit will they earn?
B) Graph this situation including profits
C) How much dead weight loss is there?
D) How much consumer surplus is there?
E) How much producer surplus is there?
how do we calculate the retail price index what are the problems of using the retail price index what are the advantages of inflation what are the disadvantages of inflation what are the remedies for cost-push inflation
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