6. Review the graph at right for a monopoly market.Assume the firm is charged a specific tax of = $30 per unit as shown (enter thenext four responses as whole numbers).How much is the new consumer surplus? $How much is the new producer surplus? SHow much is the new deadweight loss? $How much is the new total surplus? $The tax incidence on consumers isfraction).7. You are given the market demand function(enter your response as a10090-80-70 B60-50-40-30-20-10-04Price01020 30AMC+tMR40 50 60 70Quantity80MCD90 100✓ d

In a monopoly market, a lone seller or producer holds sway over the complete supply of a specific…

5. Review the graph at right for a monopoly market. Assume the firm is charged a specific tax of t= $30 per unit as shown (enter the next four responses as whole numbers) How much is the new consumer surplus? $ How much is the new producer surplus? S How much is the new deadweight loss? S How much is the new total surplus? $ The tax incidence on consumers is fraction). (enter your response as a 100 90- 80+ 70+ 60+ 50+ 40- 30- 20- 10- Price B MC+t MR 10 20 30 40 50 60 70 Quantity MC

5. Review the graph at right for a monopoly market. Assume the firm is charged a specific tax of t= $30 per unit as shown (enter the next four responses as whole numbers) How much is the new consumer surplus? $ How much is the new producer surplus? S How much is the new deadweight loss? S How much is the new total surplus? $ The tax incidence on consumers is fraction). (enter your response as a 100 90- 80+ 70+ 60+ 50+ 40- 30- 20- 10- Price B MC+t MR 10 20 30 40 50 60 70 Quantity MC

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 8PA

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Review the graph at right for a monopoly market. Assume the firm is charged a specific tax of t = $30 per unit as shown (enter the next four responses as whole numbers). How much is the new consumer surplus? $ How much is the new producer surplus? $ How much is the new deadweight loss? $ How much is the new total surplus? $ The tax incidence on consumers is (enter your response as a fraction). C 100- 90- 80- 70- 60- 50- 40- 30- 20- 10- 0- 0 Price 10 20 B A 30 MR 40 50 Quantity MC + t 60 70 80 MC D 90 100 √
Review the graph at right for a monopoly market. Assume the firm is charged a specific tax of t = $30 per unit as shown (enter the next four responses as whole numbers). How much is the new consumer surplus? $ How much is the new producer surplus? $ How much is the new deadweight loss? $ How much is the new total surplus? $. The tax incidence on consumers is (enter your response as a fraction). 100- 90- 80+ 70- 60- 50- 40- 30- 20- 10- 0- 0 Price B A 10 20 30 MR 40 50 60 Quantity MC+t 70 MC D 80 90 100 Q Q
Review the graph at right for a monopoly market. Assume the firm is charged a specific tax of t = $30 per unit as shown (enter the next four responses as whole numbers). How much is the new consumer surplus? $ 100- 90- 80- 70- B 60- 50- 40- 30- MC + t MC
Tecky Corp is a monopoly in the market of product Y. Suppose you are the marketing manager of Tecky Corp. You have gathered some information about product Y and the cost of Tecky Corp. as shown in the table below. Total cost $ Unit Price $ Total revenue $ Quantity 300 1 680 680 430 560 1,120 592 440 1,320 3 792 4 370 1,480 1,024 1,400 280 1,304 1,260 210 1,626 1,050 150 2,025 100 800 2,432 You are in a meeting with the CEO of Tecky Corp. The CEO asks the following question A. during the meeting: "We should be able to get more revenue as we sell more units. I see the total revenue rises from the quantity of 1 to 4. However, why does the total revenue start falling from the quantity of 5 onward?" Explain to the CEO why this is the case.
5. Graphically depict the deadweight loss caused by a monopoly. How is this similar to the deadweight loss from taxation?
1. Suppose the inverse demand for a product produced by a single firm is given by P = 100 - 10Q and the firm has a marginal cost of production of MC = 10 + 10Q. a. If the firm cannot price discriminate, what is the profit-maximizing price and level of output? b. If the firm cannot price discriminate, what are the levels of producer and consumer surplus in the market? What is the deadweight loss? c. If the firm is able to practice perfect price discrimination, what output level would it choose? What are the levels of producer and consumer surplus and deadweight loss under perfect price discrimination?
3. Assume inverse demand function for game console in an imaginary country is P=1200-4Q and the total cost function is TC=400+4Q². Government put $120 of specific tax on production. a. If the market is competitive what is the incidence of tax on consumer? b. If the market is monopolist what is the incidence of tax on consumer?
Hot Air Balloon Rides is a single-price monopoly. Columns 1 and 2 of the table set out the market demand schedule and columns 2 and 3 set out the total cost schedule. Now suppose that the government places a fixed tax on Hot Air's profit of $50 a month. Calculate Hot Air's new profit-maximizing output and price. When Hot Air is producing its new profit-maximizing output, the number of rides it produces is a month and the profit-maximizing price of a ride is $ >>> Answer to 1 decimal place. C Price (dollars per ride) 180 170 160 150 140 130 Quantity (rides per month) 0 G A WNIO 2 3 4 5 Total cost (dollars per month) 25 150 285 430 585 750
Suppose that Comcast has a cable monopoly in Philadelphia. The following table gives Comcast's demand and costs per month for subscriptions to basic cable (for simplicity, we keep the number of subscribers artificially small) Total Revenue 204 256 300 204 336 240 7 364 280 8 384 324 Suppose the local government imposes a $99 per month tax on cable companies. What will Comcast do? (Assume fixed costs equal $60.) O A. Comcast should produce 6 units in the short run and shut down in the long run. O B. Comcast should shut down in the short run and in the long run OC. Comcast should shut down in the short run and produce 6 units in the long run OD. Comcast should produce 6 units in the short run and in the long run OE. None of the above Price 68 64 60 56 52 48 Quantity 3 4 5 6 Marginal Revenue 52 44 36 28 20 Total Cost 144 172 Marginal Cost 28 32 36 40 44 Suppose that the flat per-month tax is replaced with a tax on the firm of $16 per cable subscriber (Assume that Comcast will sell only…
A monopolist produces commodity Z. Suppose that an ad valorem tax is levied on Z. What are the effects of the tax on the quantity demanded, the price paid by consumers, the price paid by the monopolist, and monopoly profits? Who bears the tax burden? State your assumptions and use a graph to illustrate your conclusions.
2. The Ice Cream Lovers Society decided to open up an ice cream stand during the summermonths. They calculated that it would cost them $0.80 to make a scoop of ice cream and$350 a month to operate the stand. They hired a research team who determined that theprice-demand function given in dollars isp x x ( ) = −8 0.02wherexis the number ofscoops sold.a. Find the revenue functionR x( )b. Find the value ofxthat produces the maximum revenue algebraically.c. Find the maximum revenue algebraically.d. Find the price per scoop of ice cream that produces the maximum revenuealgebraically.e. Find the cost functionC x( )that describes the monthly costs of operating the icecream stand.f. Find the break-even points to the nearest scoop algebraically usingR x( )andC x( ) .g. Find the profit functionP x( ).
Hot Air Balloon Rides is a single-price monopoly. Columns 1 and 2 of the table set out the market demand schedule and columns 2 and 3 set out the total cost schedule. Now suppose that the government places a fixed tax on Hot Air's profit of $40 a month. Calculate Hot Air's new profit-maximizing output and price. When Hot Air is producing its new profit-maximizing output, the number of rides it produces is a month and the profit-maximizing price of a ride is $ >>> Answer to 1 decimal place. CH Price (dollars per ride) 150 140 130 120 110 100 Quantity (rides per month) 0 1 2345 Total cost (dollars per month) 50 175 310 455 610 775