Suppose that the government imposes a tax on cigarettes. Use the diagram below to answer the questions. D is thdemand curve before tax, S is the supply curve before tax and Sr is the supply curve after the tax.PriceS-181210V87.३10 12Qua (e) (iv) Deadweight lossAnswer:

Deadweightloss represents market inefficiency. It occurs when resources are are not allocated…

Answered: (e) (iv) Deadweight loss Answer:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Supply and Demand: End of Chapter Problems 9. Adjust each graph to show the indicated change. In each graph, click on the line or its midpoint to see the options. a. An increase in quantity demanded b. A decrease in demand Quantity Question Source: Chiang 4e- Economics Princidles FoHA Changing World Publisher: Worth 11:06 PI 65°F 10/13/20 Price
(8) a.) (4) The United States Postal Service (USPS) charged $0.58 per stamp in 2022. They allow stamps.com to sell a sheet of twenty stamps with personalized photos for $1.20 per stamp. Stamps.com keeps the extra beyond the $0.58 it pays the USPS. If stamps.com is acting as a profit maximizing monopolist, what is their Lerner Index and what is the price elasticity of demand for a customized stamp? b.) (4) Suppose a movie theater determines that the elasticity of demand for movie tickets is -2.0 for senior citizens and –1.5 for adults under age 65, and the marginal cost is $4 per consumer. Use the Lerner index to determine the price senior citizens should be charged and the price adults under age 65 should be charged in order to maximize profits.
Both Chick-fil-A and Target have recently filed a lawsuit against the chicken producers who supply the companies' chicken. The lawsuit before the U.S. Department of Justice claims the chicken producers have been price-fixing acting in an anti-competitive way to achieve the monopoly outcome for prices, quantities, and profits. (a) What are the fundamental differences between a single-price monopoly and a perfectly competitive market with respect to economic efficiency? Explain why these differences occur. (b) What are the economic functions of government? In your response, expand on the types of market failures discussed in the course that encourage government intervention and how government involvement in markets has both pros and cons.
(d) An industry consists of eleven identical firms with each firm's cost given as c(q) = 4q +q? . Market demand for the product is Q 100 - p where = firm's quantity, Q = market quantity and p = price of product. All the eleven firms decide to form a cartel that will operate as a monopoly with total costs C(Q) = 4Q + Q² and divide the profits equally among its 11 member firms. (i) Find the quantity produced by each cartel firm. (ii) What will be the price set by the cartel firm? (iii) Calculate the amount of profit that each cartel firm makes. (iv) If a member firm cheated, calculate this cheating member firm's quantity produced assuming that the other firms' maintain their agreed cartel price and output.
(d) (e) (f) Detailed answers
Explain five (5) contributing determinants that will lead the change on market supply for oximeter which will eventually increase the market price in malaysia
Firm Market Share (%) A 30 B 22 C 18 D 17 E 7 F 6 Refer to the data. The Herfindahl index for the industry is select the correct option. 1,997. 87. 2,082. 1,800.
Whichofthefollowingstatementsis(are)correct? (x) A payroll tax is a tax on the wages that a firm pays its workers and in the United States the payroll tax is also referred to as a social insurance tax. (y) The payroll tax differs from the individual income tax in the U.S. because the payroll tax is primarily earmarked to pay for Social Security and Medicare. (z) Taxes on specific goods such as cigarettes, gasoline, alcoholic beverages and tires are called excise taxes. (x), (y) and (z) (x) and (y) only (x) and (z) only (y) and (z) only (x) only
A, b and c
4. As part of its production process the Peabody Coal Company used to dump foul sludge into the Ohio River. A Court has ordered to clean up an 'economically feasible' quantity of the sludge. Now the environmental group that brought the suit and Peabody are litigating over Peabody's obligation under the order. If the total social cost and total social benefits of sludge removal are as listed in the table below, how much sludge would Peabody remove? Sludge Removal 0 1 2 3 4 er 5 TSB 0 45 80 110 134 150 TSC 0 10 25 42 62 90
(a) What is a monopoly, and why is it inefficient in relation to a competitive market?
DN1(a) Amtrak has a monopoly on rail travel in the U.S. It uses price discrimination to offer a discounted price for adults who are currently enrolled students. The marginal cost per train ticket from Baltimore to New York is 100. The demand for regular tickets is P=1000-5Q and the demand for student tickets is P-500-Q. (a) Why would a monopolist like Amtrak offers a discounted price for adult students rather than charging them the same price as other adults?

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