Profit maximizing price and quantity of food
Course:- Macroeconomics
Reference No.:- EM131334883

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Macroeconomics

You live in a small town with only one grocery store. The demand curve for food in your town is given by -1/5Q. the grocery store has a total curve given by TC = 50 + 1.25Q

A) What is the profit maximizing price and quantity of food if the firm charges the same price to everyone? How much profit will they earn?

B) Graph this situation including profits

C) How much dead weight loss is there?

D) How much consumer surplus is there?

E) How much producer surplus is there?

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Macroeconomics) Materials
Define and explain three barriers to trade.  What effect do these barriers to trade have on domestic consumer surplus?  What is the Riccardo Effect in relation to specializa
Calculate the approximate unemployment rate with Okun's Law Theory that is not in your textbook. To calculate the unemployment rate with Okun's Law - Prosperity and full emp
What was the percentage change in Nominal GDP for the most recent quarter compared to the previous quarter? What was the percentage change in Real GDP for the two quarters?
Now consider the choices our government faces when it has limited tax revenues to fund the unlimited wants of its citizens. Describe some of the choices the government makes
The organization's strategic plan calls for an aggressive growth plan, requiring investment in facilities and equipment, growth in productivity, and labor over the next five
As a network infrastructure architect for a retail music chain, you know the value of unified communication (UC) to your business. Discuss how you will convince your organiz
The complete lung-run model for exchange rate determination posits that changes in the nominal interest rate also affect the exchange rate (E). Recall that the complete mode
Illustrate what would happen if the government intervened and lowered the maximum price that could be charged for this service or good. How would this change the output and