Imagine a single firm is facing regulation that would require it to abate its emissions. It has an MAC = 40 + 2A, and when unregulated it would produce 220 units of emissions. ------ a) First, suppose the regulation is a standard that requires this firm to reduce its emissions to 180 units. What is the total cost of abatement to the firm? b) Now suppose the regulator decides to apply a tax of $120 per unit on the firm. How much will the firm pay in abatement now? c) How much will it transfer to the regulator? (Do not include commas in your answer.) d) Draw a graph with the MAC curve of the firm (extend the abatement axis to the unregulated level of emissions), and illustrate the standard and tax level. Show the costs of complying with each regulation from the firm's perspective by labels the total abatement cost area under the standard, under the tax, and the total transfer to the government under the tax. Label the axes, intercepts, and relevant prices and quantities.

For a monopolist, it is typically a great idea to implement third-degree price discrimination (the one where the monopolist chooses different prices for different groups of customers) when the consumers can easily re-sell the good to one another after acquiring it from the monopolist. (a) True. (b) False.

part C D

A monopolist faces the demand curve P = 18 – Q, where P is measured in rands per unit and Q in thousands of units. The monopolist has a constant average cost of R6 per unit. 1.  What are the monopolist’s profit-maximising price and quantity and what is its resulting profit? (8)

Your friend Donald needs to decide where to build his manufacturing plant and asks Joe for advice because you don't have time to deal with Donald. After research, Joe finds that the wage costs in his area, based on distance to market, are as follows: 200 - 3x, while the shipping cost to get the goods to the consumer is 5x, where x is the distance to market Two equations. Draw the land bid for the manufacturing plant, considering a revenue constant of $450.

If an up-scale jewelry maker sells its products to retailers with the explicit condition that the retailers may not resell the products below a specified price, this is an example of ________.

Suppose a monopolist faces a demand curve D(p) = 10 - P. It has no variable cost, but it incurs a quasi-fixed cost F = 9 if it produces any output at all.(a) What would the "competitive" (i.e., price = marginal cost) outcome look like? Does this seem reasonable in this case?(b) What is the monopoly price and quantity?(c) Suppose a regulator wanted to improve welfare by operating the firm directly. Assuming that we value consumer surplus, producer surplus, and government revenue/cost equally, what output would the regulator choose? What is consumer surplus? What is the cost incurred by the government?

If a good is valued at $55,000 by the buyer and $47,000 by the seller, what amount of tax would result in an unconsummated transaction? Group of answer choices the transaction would never take place even if there wasn't a tax a tax of $7,999.99 a tax of $1,500 a tax of $9,000

Problem 3 Squeak eClean produces commercial sanitizer used to clean tanker trucks that haul liquid food products such as milk. This sanitizer a commodity like any other and at the wholesale level, there are many domestic and foreign producers that compete vigorously. Suppose you have the following estimated market demand and supply functions for the sanitizer. Qd=248.08 +2.2Y – 0.6Pc+ 1.2 Ps − 4P Qs = 10 +2P In these equations, Q measures output in gallons per month (in 1,000's), P is the price per gallon of the sanitizer, Y is annual average household income (in 1,000's), Pc is an index of commodity prices, and Ps is the average price per gallon of other types of sanitizer. After gathering the latest data, you find that average household income is $36,400, the current level of the commodity price index is 110.6, and the average price per gallon of other types of sanitizers is $48.50. a. Find the current equilibrium price and quantity in this market. b. Find the equilibrium price and…

A monopoly’s inverse demand function is p= 100 - Q + (5A-A2)/Q: where Q is quantity, p is price and A is the level advertising. Its marginal cost of production is constant at 10 and its cost of a unit of advertising is 1.  What are the firm’s profit-maximizing price, quantity, and level of advertising? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.