Question 1 libertyville has two optometrists dr smith s and

Assignment Help Microeconomics
Reference no: EM13375536

Question 1. Libertyville has two optometrists, Dr. Smith (S) and Dr. Jones (S). Each optometrist can choose to advertise his service or not. The net revenue to each optometrist, in thousands of dollars, is listed on the payoff matrix below. Answer questions a through c:

a. Does Dr. Smith have a dominant strategy?
b. Does Dr. Jones have a dominant strategy?
c. Does a Nash equilibrium exist for this game?

788_Calculate the tax revenue in the post-tax equilibrium.png

Question 2. Suppose the market for cigarettes is characterized by the following information:

Qd = 70 - 5P [Demand] Qs = 3P - 10 [Supply]

Suppose the government imposes a sales tax of $2 per unit. Answer questions (i) through (v) below:

i) Calculate the magnitude of the consumer surplus and producer surplus in the pre-tax equilibrium.
ii) Calculate the tax revenue in the post-tax equilibrium.
iii) Calculate the change in consumer surplus due to the sales tax.
iv) Calculate the change in producer surplus due to the sales tax.
v) Calculate the Dead-Weight-Loss due to the sales tax.

Reference no: EM13375536

Questions Cloud

Contemplating awarding a contract to the azusa : contemplating awarding a contract to the azusa manufacturing company for the assembly of wiring harnesses. included in
1 explain what effect an expansionary fiscal policy would : 1. explain what effect an expansionary fiscal policy would have on the price level and real gdp starting from full
1name 5 stylized facts about the business cycle2 rank order : 1.name 5 stylized facts about the business cycle.2. rank order these three ideas from most optimistic about how a
1 a newspaper recently lowered its price from 3 to 1 as it : 1 a newspaper recently lowered its price from 3 to 1. as it did the number of newspapers sold increased from 240000 to
Question 1 libertyville has two optometrists dr smith s and : question 1. libertyville has two optometrists dr. smith s and dr. jones s. each optometrist can choose to advertise his
Present your solution to the following problem in an excel : present your solution to the following problem in an excel document.problem 1cool beans company has 30000 shares of 2
Kellys boutique nbspcash budgetsee the attachment for full : kellys boutique nbspcash budgetsee the attachment for full information about nbspkellys boutiquenbspattachment- unit 7
Explain how the us government managed to accumulate a debt : explain how the us government managed to accumulate a debt of over 14 trillion. to whom does it owe this debt? is the
Explain how the us government managed to accumulate a debt : explain how the us government managed to accumulate a debt of over 14 trillion. to whom does it owe this debt? is the

Reviews

Write a Review

Microeconomics Questions & Answers

  Which country would expect to have a hier standard of living

suppose Arnor and Gondor are two very similar countries that started out with identical population, technologies, etc. except that Gondor has a much higher mortality rate due to a more hazardous geographical location.

  Theory of income distribution with marx distribution theory

Compare and contrast John Bates Clark's marginal productivity theory of income distribution with Marx's distribution theory.

  Determine the long-run marginal cost function

Determine the long-run marginal cost function for electricity generation and determine the short-run average variable cost and marginal cost at the output level in Part (d)

  A coin is biased so that a bead is three times as likely to

A coin is biased so that a bead is three times as likely to occur as a tail. Find the expected number of tails when this coin is tossed twice.

  If a company invents a process that saves 280,000 per year

If a company invents a process that saves 280,000 per year - how much can the company afford to invest if they need to earn 20% per year and they want to recover their investment over a 10 year period of time

  1 the demand and supply equations in a market are given as

1 the demand and supply equations in a market are given as q 30 - 2p and q 10 2p. if the government imposes a tax of

  1 greg has a salary of 100 he spends his entire budget on

1. greg has a salary of 100. he spends his entire budget on milk and cookies. the cost of a quart of milk is 2.00 and

  For most firms today success or failure is determined by

for most firms today success or failure is determined by the ability to find attract keep develop and tap into the most

  Aggregate production and gdp in turkey

What will the economic impacts of maintaining lower CO 2 emissions in the aggregate for the Turkish economy?

  Find the consumer price index (cpi)

Consider three consumer goods: 100 of Good A, 100 of Good B, and 100 of Good C. In the base year, Good A sold at a price of $1, Good B sold at a price of $1, and Good C sold at a price of $1. In the current year, Good A sold at a price of $3, Go..

  Develop a regression equation using the data you collected

Use the regression equation to focus the demand for the product you chose for the next three periods. Assess what the results of the regression equation tells managers and how it is likely to impact decisions made related to maximizing profitabili..

  Find the marginal product of each factor

Does this production function exhibit constant, increasing, or decreasing returns to scale and find the marginal product of each factor and the marginal rate of technical substitution.

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