For Question#4 and Question#5 below, how do you get 93 and 5059? Suppose a single-price monopolist faces an inverse market demand curve given by P(Q) = 310-0.75Q and has a cost curve given by C(Q) = 100 + 40Q + 0.500Question 1How many units will the monopolist provide in the market equilibrium?Equilbrium quantity: 108. (Round your answer to two decimal places and use in subsequeont calculations.)Question 2What are the economic profits of this monopolist?Economic profits: 14480. (Round your answer to the nearest whole number.)Question 3How many of the profits are "unearned"? L.e., what are the economic rents of this monopolist?Economic rents: 8748. (Round your answer to the nearest whole number.)For the next two questions, consider the impact of a 22% ad valorem tax imposed on the consumers in this market.Question 4What quantity will be sold in the after-tax equilibrium?Equilibrium quantity: 93.00 units. (Round your answer to two decimal places and use in subsequent calculations.)Question 5What are the economic rents of the monopolist after this policy is imposed?Economic rents: 5059. (Round your answer to the nearest whole number.)

Ad-valorem tax is imposed on the value of the goods and services purchased by consumers, adding onto…

For the next two questions, consider the impact of a 22% ad valorem tax imposed on the consumers in this market Question 4 What quantity will be sold in the after-tax equilibrium? Equibrium quantity. 93.00 units. (Round your answer to two decimal places and use in subsequent calculations.) Question 5 What are the economic rents of the monopolist after this policy is imposed7 Economic rents: 5059. (Round your answer to the nearest whole number.)

For the next two questions, consider the impact of a 22% ad valorem tax imposed on the consumers in this market Question 4 What quantity will be sold in the after-tax equilibrium? Equibrium quantity. 93.00 units. (Round your answer to two decimal places and use in subsequent calculations.) Question 5 What are the economic rents of the monopolist after this policy is imposed7 Economic rents: 5059. (Round your answer to the nearest whole number.)

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter14: Monopoly

Section: Chapter Questions

Problem 14.1P

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Similar questions

Imagine that you ale managing a small firm and thinking about entering the market of a monopolist. The monopolist is currently charging a high price, and you have calculated that you can make a nice profit charging 10 less than the monopolist. Before you go ahead and challenge the monopolist, what possibility should you consider for how the monopolist might react?
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