Find the original producer surplus

Assignment Help Business Economics

Reference no: EM131159688

How do i find the original producer surplus? The imposition of a $1.50/unit excise tax on a competitive market raises the price buyers pay (inclusive of the tax) by $0.60/unit and reduces the volume of trade in the market from 2000 units/day to 1600 units/day. Assuming that the demand and supply curves are straight lines, the tax reduces producer surplus by how much?

Reference no: EM131159688

What is the industry supply curve

Suppose an industry has 100 firms, each with supply curve P = 50 + 10Q. Furthermore, suppose the market demand curve is given by P = 200 - 0.9Q. What is the industry supply cu

Adverse selection or the principal-agent problem

Analyze the situations involving risk below to determine if they involve Moral Hazard (M), Adverse Selection (A), or the Principal-Agent Problem (P). For Moral Hazard write “M

The money supply-interest rates and aggregate demand

Suppose that you are a member of the Board of Governors of the Federal Reserve System. The economy is experiencing a sharp and prolonged inflationary trend. Explain in each ca

Firm marginal revenue at the current price and quantity

A firms demand curve is given by P = 500 -2q, the direct Q = 250 - 1/2P. The firm's current price is $300 and the firm sells 100 units of output per week. Calculate the firm's

Firm using the right balance of capital and labor

The marginal product of labor is 10 and the marginal product of capital is 20. If the wage rate is $10 and the price of capital is $5, is the firm using the right balance of c

Determine the pure strategy nash equilibria

For the following situation, come up with a game (in normal form – the matrix representation we have been using) to describe the situation. Determine the pure strategy Nash eq

Generally able to charge higher price

A neighborhood convenience store is generally able to charge a higher price for its candy bars than the town’s Wal-Mart Super Center because the convenience store:

What has happened to consumer surplus in the market

Apex Manufacturing charges Zenith Manufacturing with predatory pricing (that is, selling below cost) What do you think anti-trust authorities will want to consider before they

Reviews

Write a Review

Message

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!

Submit Assignment

User Account

All Pages