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Here from a), profit maximizing price = 7 and Q = 10. It is shown in the figure below:-
The consumer surplus is shown in blue area which is given as (9-7) *10*1/2 =10 dollar.
Monopoly with tax of 50 cents per unit
Here from c), profit maximizing price = 7.25 and Q = 8.75. It is shown in the figure below:-
The consumer surplus is shown in blue area which is given as (9-7.25 ) *8.75*1/2 =7.65625 dollar. Monopoly without tax, but with price ceiling of $6
Here from d), profit maximizing price = 7.5 and Q = 7.5. It is shown in the figure below:-
The consumer surplus is shown in blue area which is given as (9-7.5 ) *7.5*1/2 =5.625 dollar. * Perfectly competitive industry
In case of perfectly competitive,
MC = D
ð 5 = 45-5P
ð P = 8
And Q from equn i) is 5
So consumer surplus = ½ * (9-5)*5 =10 dollar.
Different approaches to measure aggregate output
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The entire market is capture by a single firm which can produce at a constant average and marginal cost of AC = MC = 10. The firm faces a market demand curve given by Q = 60 ? P.
Aggregate demand in the cross model Because C and Im depends positively on Y while G, I and X are exogenous, aggregate demand Y D will depend positively on Y: Y D (Y) = C(
complexity theory elements
If 5000 units are sold and income increases by 20% with an income elastiticy of +2, what will the number of sales units be after the increase
i have assignment due within less than 24 hours if i submit assignment can i get it back before 24 hours?
Charge is distributed with constant volume density D throughout the rectangular box with length a, width b and height c. a) what is the monopole moment of this system. b) What i
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