User Account

All Pages

How much is the consumer surplus and producer surplus

Assignment Help Business Economics
Reference no: EM131244213

Suppose the market demand function (expressed in dollars) for a normal product is P = 100 – 2Q and the Supply Curve is P= 10 + Q, where P is the price of the product and Q is the quantity demanded or supplied. Assume that the Marginal External Cost curve is MEC = 5 + 0.5Q. Here are the specific questions: (show all of your calculations and draw the graph).

In a competitive market

What is the equilibrium price and quantity?

How much is the Consumer Surplus?

How much is Producer Surplus (P.S.)?

How is the total external cost (TEC)?

What the Total Welfare (sum of C.S. and P.S. minus TEC)?

In perfect world,

What is the efficient output and price?

How much is the Consumer Surplus?

How much is Producer Surplus (P.S.)?

How is the total external cost (TEC)?

How much tax revenue is collected?

What the Total Welfare (sum of C.S. and P.S. minus TEC plus Tax Revenue)?

Reference no: EM131244213

Questions Cloud

Define what a public good is and give an example : Define what a public good is and give an example. Make sure to mention and explain the two key characteristics of a public good that make it different from a private good. (Hint: The beginning pages of chapter 36 in Varian are helpful for this questi..
Consumer income rises : If MPC is .75 then if consumer income rises by $10,000 we would predict that consumption will: A. rise by $7500 while savings fall by $2500. B. fall by $2500 while savings rise by $7500. C. rise by $7500 while savings rise by $2500. D. fall by $2500 ..
International trade countries with high wages : Explain how it is that in international trade countries with high wages, such as Germany and the US, are able to compete against countries where wages are lower, such as China and Bangladesh.
Determine the price elasticity of demand : Determine the price elasticity of demand if, in response to an increase in price of 25 percent, quantity demanded decreases by 55 percent. Is demand elastic or inelastic?
How much is the consumer surplus and producer surplus : Suppose the market demand function (expressed in dollars) for a normal product is P = 100 – 2Q and the Supply Curve is P= 10 + Q, where P is the price of the product and Q is the quantity demanded or supplied. What is the equilibrium price and quanti..
What is the difference between a quota and a tariff : What is the difference between a quota and a tariff? Which of the two trade sanctions would be more effective and why? please explain it in your own words
Calculate its average and marginal costs for volumes : A community health center has assembled the following data cost and volume. Calculate its average and marginal costs for volumes ranging from 25 to 40. What patterns do you see?
Determine how strategy increases organizational effectivenes : Determine how its strategy increases organizational effectiveness - Propose three ways that HR can use competitive advantage in the marketplace to recruit new applicants in general.
Danger in over simplifying the globalization approach : What is the danger in over simplifying the globalization approach? Would you agree with the statement that "if something is working in a big way in one market, you better assume it will work in all markets"?

Reviews

Write a Review

 

Business Economics Questions & Answers

  How the problems can reduce gains from primary export trade

Critics argue that countries relying on primary exports will experience problems of fluctuating and declining terms of trade. Explain the theory and evidence behind these arguments, and how these problems can reduce the gains from primary export t..

  Find mean and standard deviation of an employee

The amount of money generated in a week can be viewed as a random variable with a mean of $700 and a standard deviation of $130. Find mean and standard deviation of an employee's total pay in a week.

  Significance to international financial governance

Define Identification of these terms and discuss its significance to international financial governance. The European Commission, The European Central Bank, The Second Banking Directive, The Financial Services Action Plan.

  Explain to the general manager of your team

The player averages 5 rebounds and 20 points per game. Explain to the general manager of your team whether or not to sign the player.

  Question1 consider a macro economy that is initially at

question1 consider a macro economy that is initially at equilibrium level of real gdp. by using an aggregate demand and

  Suppose that rob and big both raise animals and sell them

Suppose that Rob and Big both raise animals and sell them. Because Rob and Big have different talents, they have varying abilities to raise these animals. In 1 day, Rob can produce either 10 cows or 20 pigs.

  Explains in words and with graph

Suppose that clean srings water c ompany has a monopoly on bottled water sales in california. suppose that the price of tap water increases. which is the change in the profit maximisation price and level of output for CSWC. explains in words and..

  Simply use the exchange rate to make the conversion

How large is the Japanese economy? Japanese GDP is 2010 was 480 trillion Yen (US GDP is 14.S trillion). The exchange rate in 2010 was 87.8 yen per Dollar. What is the ratio of Japanese GDP to U.S. GDP if we don't take into account the differences in ..

  Different inflation rate

In 2011, the CPI increased by 1.4%, the GDP price index increased by 1.2% and the PCE increased by 1.8%, we can see all are increases, but why does each one of these measure give a different inflation rate?

  Describe how the consumer price index

Describe how the consumer price index and the inflation rate are calculated. Why is it thought that the consumer price index, as presently calculated, overstates the rate of inflation?

  Total output or real gdp will be

Assume that an economy has 1500 workers, each working 2000 hours per year. If the average real output per worker-hour is $20, then total output or real gdp will be?

  Stacy lives and banks in texas

Stacy lives and banks in Texas. The reserve requirement is 20%. If Stacy sells government bonds to the Federal Reserve for $1,000,000, will the money supply likely rise, fall, or not change?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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