User Account

All Pages

Problem regarding the deadweight loss

Assignment Help Microeconomics
Reference no: EM131040149

Suppose the demand for a product is given by P=30 - 2Q. Also, the supply is given by P= 5+3Q. If a $5 per unit excise tax is levied on the buyers of a good, the deadweight loss created by the tax will be:

A) $5

B) $16

C) $2.50

D) $4

E) None of these

Suppose the demand for a product is given by P=40-4Q. Also, the supply is given by P= 10+Q. If a $10 per unit excise tax is levied on the buyers of a good, the deadweight loss created by the tax will be:

A) $5

B) $16

C) $2.50

D) $4

E) None of these

Reference no: EM131040149

Questions Cloud

Change without altering that persons values : Are accurate perceptions always necessary to develop sound decisions? Is it appropriate to change the emotions of people in the organization? If so, what situations will be appropriate? And how can a person’s emotions be change without altering that ..
Differentiate between money and capital markets : Describe the role of the financial institutions and financial markets in our economy
Marginal cost equals average cost : If the monopolist maximizes profits when marginal revenue equals marginal cost equals average cost, economic profits must be
Formulate and solve an integer programming model : The Skimmer Boat Company manufactures three kinds of molded fiberglass recreational boats—a bass fishing boat, a ski boat, and a speedboat. The profit for a bass boat is $20,500, the profit for a ski boat is $12,000, and the profit for a speedboat is..
Problem regarding the deadweight loss : Suppose the demand for a product is given by P=30 - 2Q. Also, the supply is given by P= 5+3Q. If a $5 per unit excise tax is levied on the buyers of a good, the deadweight loss created by the tax will be:
Price and output under monopoly : If the product demand curve and the industry's cost curves were the same whether the industry operated under conditions of perfect competition or monopoly, what could be said about the price and output under monopoly vis-a-vis the competitive pric..
Can anonymous be stopped : Anonymous, the elusive hacker movement, thinks of itself as a kind of self-appointed immune system for the Internet, striking back at anyone the group perceives as an enemy of freedom, online or offl ine. Anonymous fi rst gained widespread notorie..
After the tax the buyers will pay : Suppose the demand for a product is given by P=100-2Q. Also, the supply is given by P=20+6Q. If an 8 per unit excise tax is levied on the buyers of a good, then after the tax the buyers will pay:
What is the sign of the acceleration : What is the sign of the velocity? What is the sign of the acceleration? On that interval is the speed increasing or decreasing?

Reviews

Write a Review

Microeconomics Questions & Answers

  Show by how much each firms costs go up or down find the

three firms have marginal costs of pollution abatement as described below. without regulation each firm would pollute 3

  Why might it be cheaper to drive on a toll-road

How do costs play into your everyday life? For example, why might it be cheaper to drive on a toll-road vs. a free-access interstate Also, can you identify situations where you may fall victim to the sunk cost fallacy (we all do)

  Build the strategy map for each company to show where they

choose two companies in the same industry - one with a cost leadership strategy and one with a differentiation

  Draw the game tree for the mall location game

Draw the game tree for this mall location game. Describe the equilibrium by using the (complete) strategies employed by each department store.

  Profit-maximizing price and quantity chosen by monopolist

A monopolist faces a market demand curve given by P=12-2Q and has a total costs given by TC=6+Q^2. What is the profit-maximizing price and quantity chosen by the monopolist? What is the monopolist's profit?

  What is the estimated initial cost

He also stated that the costs for chemicals, machinery, maintenance, and labor were estimated at $150,000 per year, but he forgot to list the cost for initiating the program (trucks, pumps, tanks, etc.). If the initial cost was amortized over a 10..

  Does mr smith fit typical profile for uninsured person in

joe smith is a 27- year-old caucasian male who works two part-time jobs for two different construction companies. joe

  How the new person causes diminishing returns

At a management luncheon, two managers were overheard arguing about the following statement: "A manager should never hire another worker if the new person causes diminishing returns." Is this statment correct.

  Is the capital structure changed significantly over time?

Has the capital structure changed significantly over time? Is this an appropriate capital structure for this business? Why or why not?

  Should the recruiting o?cer accept the hypothesis

Should the recruiting o?cer accept the hypothesis and What is the rejection region for the test in centimeters?

  Determine nancys optimal schooling level

What is Nancy's lifetime income if she gets no schooling? What is it if she goes toschool for all 60 remaining years of her life? In words, describe the "cost" to Nancy ofchoosing to attend school for 1 additional year.

  Federal reserve reduced real interest rates

In the year 2000, faced with a stock market crash, the U.S. Federal Reserve reduced real interest rates. Discuss what would be the effects of a stock market crash on different components of aggregate expenditures and how it will affect the aggregate ..

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