Calculate the welfare loss compared to the competitive

Assignment Help Microeconomics
Reference no: EM13867756

1) A monopolist faces the following demand curve P=222-2Q. The monopolist's cost is given by C=2Q.

(a) Calculate the profit-maximizing quantity and the corresponding price. What is the resulting profit/loss. Calculate the monopolist's markup.

(b) Calculate the profit-maximizing quantity and the corresponding price if this firm were competitive and charged marginal-cost-prices? What is the resulting profit/loss. Calculate the firm's markup.

(c) Compare the results to (a) and (b) and calculate the deadweight loss caused by the monopoly.

2) A monopsonic Fast Food Chain exhibits a demand for labor given byw=210-3L, wherewdenotes the wage andLthe quantity of labor hired. Workers' labor supply is given byw=2L+7.

(a) Calculate the profit maximizing labor demand and the resulting wage paid for the monopsonistic firm.

(b) Calculate the welfare loss compared to the competitive outcome.

3) Refer to the monopsony question above (Question 2). If the government imposed a minimum wage ofw=70,what would be the resulting quantity of labor employed, the wage, and the welfare loss. Also, calculate the change in welfare compared to the free market outcome (i.e., in the absence of minimum wages). Is this a welfare gain or a loss?

Reference no: EM13867756

Previous Q& A

  Explain the ethical implications of both options

Examine the current legal and regulatory requirements that are present in this situation. Evaluate the legal, professional, and personal risks associated with both options. Explain the ethical implications of both options

  Determine the median maintenance cost

Determine the median maintenance cost. Based on the median, develop a contingency table with bus manufacturer as one variable and whether the maintenance cost was above or below the median as the other variable.

  What ethics or rules of conduct do you live by

What ethics or rules of conduct do you live by? How does the presence or absence of these rules affect your life positively and negatively

  Is the government provision of interstate highways

Is the government provision of interstate highways a productive use of resources?

  How can this experiment be refined

I have two questions regarding this lab? its the same BIOS 2011 Lab 5 PCR the document  online how can this experiment be refined? i was think may bigger sample size or different genus of ants

  Identify common mental health counseling needs

Identify common mental health counseling needs. Explain the counseling approach that best fits the needs of the population and make suggestions for implementation

  Please explain replication, transcription, and translation

Please explain replication, transcription, and translation.

  Conduct a comparative analysis of the firms

Identify two firms with similar problems but from different countries - Conduct a comparative analysis of the firms

  How does symbiogenesis explain the rise

How does symbiogenesis explain the rise of eukaryotic cells?

  Do antivirals grow resistant to viruses

Do antivirals grow resistant to viruses, like antibiotics do to bacteria?

Reviews

Write a Review

 

Similar Q& A

  Demonstrate exploration beyond the text

Research and respond to the following questions in essay format, including provision of references for support. Each answer should demonstrate exploration beyond the text, and should demonstrate depth worthy of an MBA. Analyze the effectiveness of th..

  The exchange rate turned out to be 110 yen per dollar at

japan life insurance company invested 10000000 in pure-discount u.s. bonds in may 1995 when the exchange rate was 80

  Currently keeping large quantities of excess reserves

Why are banks currently keeping large quantities of excess reserves? What are the monetary policy implications of banks keeping large quantities of excess reserves? In particular how does it change the efficacy of open market operations?

  Negative externalities that arise from the production

Negative externalities that arise from the production of a good;a. cause an increase in the demand for the goodb. cause a decrease in the demand for the goodc. impose costs on third partiesd. bring private costs into equality with social costs.

  What would the actuarially fair insurance premium be

a. What is your expected income next year b. Suppose that you could insure yourself against the risk of reduced consumption next year. What would the actuarially fair insurance premium be

  Problem 1assume that in period 0 we have y200 c180 g0 and

problem 1assume that in period 0 we have y200 c180 g0 and mpc0.75. assume in period 1 only g increases by 30. how much

  Pre-trade production points have bearing on comparative cost

Why that is the pre-trade production points have a bearing on comparative costs under increasing cost conditions but not under conditions of constant costs?

  What do the two decision processes have in common

a. Explain the decision process for a firm trying to determine the optimal quantity of a factor of production to employ. b. Explain the determination of the optimal level of pollution frrom the perspective of society.

  Summarize four major pieces of legislation collectively

write an essay suggested length of 2-3 pages that describes the relationship between regulation and market structures

  Additional ads would generate similar response rates

The first national bank received 3,000 inquiries following the latest advertisement describing its 30-month IRA accounts in the Boston World, a local newspaper. The most recent as in similar advertising campaign in Massachusetts Business, a regional ..

  Strong and capable of mowing their own lawns efficiently

Should Lebron James mow his own lawn? Most pro athletes are strong and capable of mowing their own lawns efficiently.

  What is equilibrium level of income-value of the multiplier

Consider the following simple economy with no government or foreign sector: Consumption: C=200+0.8Y Investment: I=100. What is the equation for aggregate demand (AD) for this economy? What is the equilibrium level of income? What is the value of the ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd