What happens when government levy tax

Assignment Help Macroeconomics

Reference no: EM1315091

A monopolist faces the following demand curve: P=120-0.02Q, where Q is production and P is price measured in cents per unit. The firm's cost function is given by C=60Q+25,000.

a) What is the level of production, price and total profits per week?

b) If the government decides to levy a tax of 14 cents per unit on the product, what would be the level of production, price, and profit?

Reference no: EM1315091

Questions Cloud

Transactions in corporate accounting : Preparation of journal for various transactions in corporate accounting - Purpose the journal entries for the following 2008 transactions. Place your answers below the rest of these questions.

Aunt works for a defense manufacturing company : You find out which your aunt works for a defense manufacturing company which has several defense contracts with the government.

What is the tension on cables : An 82 kg lumberjack stands at one end of a 355 kg floating log. Both the log and the lumberjack are at rest initially. If the lumberjack now trots toward the other end of the log with a speed of 2.70 m/s relative to the log, what is the lumberjack's ..

Using excel find p-value : The firm examined 35 randomly chosen fax transmissions during the next year, yielding a sample mean of 14.44 with a standard deviation of 4.45 pages.

What happens when government levy tax : A monopolist faces the following demand curve: P=120-0.02Q-What is the level of production, price and total profits per week?

Calculation of beta and weighted average cost of capital : Calculation of beta and weighted average cost of capital and How asset betas should be used? What is the corresponding Cost of Capital

Application of logarithmic and exponential functions : State the rate of growth of population of bacteria? State the initial population at time t = 0 hours?

Z score on comparison distribution for sample score : Z score on comparison distribution for sample score and your conclusion. Suppose that all population are normally distributed.

Purpose the general journal entry : Accounting treatment for payroll in a company - Purpose the general journal entry to accrue the employer's payroll tax expense

User Account

All Pages