Consider a monopoly firm with constant marginal costs and ask what happens to the price charged when a quantity tax is imposed, the price goes up by _ amount of the tax. O A 1/4 ов 1 оС 1/2 OD 2

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
Related questions
Question

Please help

5 Consider a monopoly firm with constant marginal costs and ask what happens to the price charged when a quantity tax is imposed, the
price goes up by _ amount of the tax.
O A 1/4
ов 1
оС 1/2
OD 2
6 Consider a pure exchange economy. Suppose
uĄ(x, x;) = (x)ª(x3)'-e, wa = (1,0)
ug(xj,x;) = min{x}, x;}, w, = (0,1),
where o < a < 1, the competitive equilibrium (x},x3), (x}, x;); (1,p2)of this economy is .
O A
(1 – a, 1 – a), (a, a); (1, :)
O B
((a,a), (1 – a, 1 – a);(1, :)
((a, a), (1 – a, 1 – a);(1,)
-
(1 – a,1 – a), (a, a):(1,)
O D
Transcribed Image Text:5 Consider a monopoly firm with constant marginal costs and ask what happens to the price charged when a quantity tax is imposed, the price goes up by _ amount of the tax. O A 1/4 ов 1 оС 1/2 OD 2 6 Consider a pure exchange economy. Suppose uĄ(x, x;) = (x)ª(x3)'-e, wa = (1,0) ug(xj,x;) = min{x}, x;}, w, = (0,1), where o < a < 1, the competitive equilibrium (x},x3), (x}, x;); (1,p2)of this economy is . O A (1 – a, 1 – a), (a, a); (1, :) O B ((a,a), (1 – a, 1 – a);(1, :) ((a, a), (1 – a, 1 – a);(1,) - (1 – a,1 – a), (a, a):(1,) O D
7 Suppose a monopolist' s cost function is c(y) = y? + 10y and the inverse market demand function is p(y) = 100 –
-ty. The monopolists'
optimal output level y* and maximal profit are
and
O A 30; 1350
ов 20; 1200
OC 30; 2700
OD 20; 2400
8 Suppose a monopolist s cost function is c(y) = y? + 10y and the inverse market demand function is p(y) = 100 – 2y. If the monopolist is
a price taker, i.e., if it considers the market to be a competitive
market, the optimal output level y* and maximal profit are_ and_.
O A 36; 1296
ов 33; 1350
ос 32;B 1664
OD 30; 1500
Transcribed Image Text:7 Suppose a monopolist' s cost function is c(y) = y? + 10y and the inverse market demand function is p(y) = 100 – -ty. The monopolists' optimal output level y* and maximal profit are and O A 30; 1350 ов 20; 1200 OC 30; 2700 OD 20; 2400 8 Suppose a monopolist s cost function is c(y) = y? + 10y and the inverse market demand function is p(y) = 100 – 2y. If the monopolist is a price taker, i.e., if it considers the market to be a competitive market, the optimal output level y* and maximal profit are_ and_. O A 36; 1296 ов 33; 1350 ос 32;B 1664 OD 30; 1500
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education