The market demand function of a perfectly competitive market is Q=500-p, and the cost function of an individual company is C(q)=q^3-20q^2+110q. Suppose that the government imposes a tax of 10 per unit of transaction on companies. In the long-term equilibrium, find K-L when you indicate the number of companies as L and the market price as K. Find W1 - W2, W1 is when no tax is imposed, and W2 is when the government imposes a tax of 10 per unit of transaction on an enterprise.

Find the consumer and producer surpluses by using the demand and supply functions, where p is the price (in dollars) and x is the number of units (in millions).   Demand Function: p = 1220 − 21x Supply Function: p = 40x

The tables (below) show the willingness to pay by three (competitive) consumers for additional units of some good, and the marginal costs of three (competitive) firms that produce that good. a) Compute the competitive equilibrium quantity and price for this market. Also, compute each consumer's surplus and each firm's profits. b) Now suppose that you have access to the same technology (and competitive input markets) as that of Firm 3. Entering the market (that is, launching a fourth firm) means a fixed (yes, sunk too) cost of $10. Would you decide to enter? (Entry has effects on the market, of course.) c) With the same data, suppose that all three firms merge. That is, now a single corporation controls (and decides on output for) all three firms (now, plants of one single firm). Obtain the output (or, equivalently, the price) that this monopolistic corporation will choose, and evaluate the consequences for the consumers (that is, the effect on the consumer surplus) and for the profits…

Suppose the government imposes a 4 dollar tax on each unit of good produced by each firm. Each firm's cost function is now C(g) = 200 +4g + q*/2, where the 4q reflects the tax payment. What is each firm's new supply function? Oq = p+ 40 Oq = p- 40 Og = p - 4 Oq = Suppose we are in a short-run equilibrium after the government tax and there are no firm entrants/exits. What is the new equilibrium price and market-level quantity? Note that the market-level demand curve is still the same, Qp = 2000 – 50p. Op = 16, q = 500 Op = 20, q = 800 Op = 22, q = 900 Op = 24, q = 1000 Suppose we are now in a new long-run equilibrium with the government taxes in place. Relative to the short-run equilibrium after the tax, which of the following statements is true? Oprice decreases, market-level quantity increases, and each firm's quantity increases Oprice increases, market-level quantity decreases, and each firm's quantity increases Onew firms enter the market