What is the deadweight loss and why it arise

Assignment Help Econometrics
Reference no: EM13235563

A monopolist faces a market demand curve given by Demand: Q=70-P. The monopolist faces the following cost structure: C=0.25Q^2-5Q+200. What output level will the monopolist choose in order to maximize profits? What is the price at this output level? What are the monopolist's profits? What is the deadweight loss? Why does deadweight loss arise?

Reference no: EM13235563

Questions Cloud

Determine the quota-induced price increase and decrease : Assume that Venezuela imposes a quota that limits imports to 300 TV sets. Determine the quota-induced price increase and the resulting decrease in consumer surplus. Calculate the quota's redistributive effect, consumption effect
What is the max speed of the monkey : A small monkey is traveling along a branch, What is the max speed of the monkey during this interval? Show all calculations
Describe a minimum of three conflict outcomes : Describe a minimum of three conflict outcomes that could reasonably occur as a result of the conflict resolution. Support your reasoning for each possible outcome.
Develop a model that will determine the total amount : Assume that you are about to deposit $1,000 in a passbook savings account that pays an annual interest of 4 percent. Develop a model that will determine the total amount of money you will have in the account at the end of the first year. Also def..
What is the deadweight loss and why it arise : A monopolist faces a market demand curve given by Demand: Q=70-P. The monopolist faces the following cost structure: C=0.25Q^2-5Q+200. What output level will the monopolist choose in order to maximize profits
Differentiate between coaching and mentoring : Provide an example to support how either of the two was used successfully in your current or past work life.
Describe the tipping point : Describe the "tipping point" where power turns into domination.
How might network externalities affect firm operating size : Explain why the cost structure associated with many kinds of information goods and services might imply a market supplied by a small number of large firms (at the same time, some internet businesses such as grocery home deliveries
What is the internal energy of the gas : The internal energy of a gas is 547.J. The gas is compressed adiabatically, and its volume decreases by 125.cm3, what is the internal energy of the gas after the adiabatic compression

Reviews

Write a Review

Econometrics Questions & Answers

  What would you expect to be the return to stocks

Suppose that the CAPM is a good model of risk in the stock market. Suppose also that the average excess return on stocks is 10% and that the risk free interest rate is 1%. What would you expect to be the return to stocks with each of the following..

  How can the multiplier have a negative effect

On the left tab under Publications, go to the Interactive Data Tables. Select National Income and Product Accounts. examine all four components of GDP (C, I, G, and Xn). Which of these four components of AD declined the most during the 2007 and 200..

  Difference between expansionary and contractionary rules

Explain how the Federal Reserve policy makers effect interest rates. Describe the difference between expansionary and contractionary rules.

  Explain how would the individual demand curves shift

Suppose the quantity of good X demanded by individual 1 is given by X1 = 10 2PX + 0:01I1 + 0:4PY and the quantity of X demanded by individual 2 is X2 = 5  PX + 0:02I2 + 0:2PY a) What is the market demand function for total X (= X1+X2) as a function o..

  Why bob and joe are always in a state of equilibrium

In city B, the value of an apartment also falls the further it is from the business center, yet the fall goes down gradually. For example, an apartment one kilometer away will lose 20 percent of its value and an apt 2 kilometers away will lose onl..

  What is the money multiplier

If the reserve ratio is lowered to 8%, what is the money multiplier and what is the maximum amount of money created by the same $5000 deposit, In a t-account show the bank balances for a $5000 deposit with a 10% reserve ratio. What is the money mu..

  How much of each good will the firm produce

Suppose that a monopolist is selling in two distinct markets each sheltered from the other, and the marginal revenue of each product is given below and the marginal cost of each is the same as indicated. How much of each good will the firm produce..

  Calculate the point price elasticity of demand

How many T-shirts could KROM sell at $4.50 each What price would KROM have to charge to sell 900 T-shirts At what price would T-shirt sales equal zero Calculate the point price elasticity of demand at a price $3.00.

  What are the second cycle changes in spending

Suppose that investment demand increases by $100. Assume that households have a marginal propensity to consume of 80 percent. Compute the first three rounds of multiplier effects as follows: a) What are the first cycle changes in spending? Total cu..

  What percentage of retail jobs would be lost

According to the News on page 677, what percentage of retail jobs would be lost if the minimum wage were increased to $9.50. Obama Wants $9.50 Minimum Wage (Crains)- When Barack Obama and his fellow Democrats take power in Washington.

  Calculate the area of tringle

The price at point a is $70 and the price at point c is $10 per bag. The price at point d is $56 and the price at point e is $31 per bag. The price at point f is $67 and the price at point g is $32 per bag.

  What factors will influence the equilibrium effect of change

Although this is an admittedly simple model, it illustrates some issues that policy mak- ers need to think about when changing fiscal policy (e.g. a reduction in the budget deficit through a reduction in government spending). Explain in words what..

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