Perfectly competitive market for cigarettes in asthmaville

Assignment Help Other Subject
Reference no: EM13260803

Suppose the perfectly competitive market for cigarettes in Asthmaville is given by the following supply and demand curves

QD = 500

QS = 100P-100

P*=600           Q*=500

Suppose a typical cigarette company, American Dispirits, has the following cost curves:

TC=125+q+1/20 q2

MC=1+1/10 q

a.)   a.) Find q*

b.) Suppose the local government decides to place a $1.00 tax on each pack of cigarettes to stop their residents from developing health problems. What is the new price of cigarettes in the market?

c.)Who bares the larger economic incidence from the tax?

d.)Calculate the DWL from the tax.

e.)If all of the firms are the same as American Dispirits, how many firm(s) will there be in this market in equilibrium?

Reference no: EM13260803

Questions Cloud

What lives made them want to risk their lives : What lives made them want to risk their lives? Have the protectors lost hope for the Jews' freddom? Have the protectors ever thought of turning in the Jews.
Combine the two sentences using the in parentheses : Combine the two sentences using the (nor) in parentheses. Do not use contractions. Unwashed fruits and vegetables are not safe to eat. Improperly cooked meat should not be eaten. (nor?)
Price and quantity demanded-assuming supply is fixed : The introduction of the first home buyers grant was intended to encourage people who had neverowned a home to buy one. Explain how you think this policy would affect the housing market (price and quantity demanded) in the short-run (assuming supply i..
Define why the double helix of dna is disrupted : Using the data on protonation of nucleotides and phosphoric acid species, explain why the double helix of DNA is disrupted when the pH of solution is lowered from 7.0 to 1.0.
Perfectly competitive market for cigarettes in asthmaville : Suppose the perfectly competitive market for cigarettes in Asthmaville is given by the following supply and demand curves
Where was la raza unida party formed : Where was La Raza Unida Party (LRUP) formed? What high school incident led to its creation? What were some of the initial negative repercussions for its members? What were two of its accomplishments?
What is the power dissipated in this circuit : A circuit contains two elements, CR. The current in this circuit when connected to a 2.15E2 V, 60.0 Hz source is 9.40 A and leads the voltage by 3.10E1 degrees. what is the power dissipated in this circuit
Define aqueous hydrogen peroxide : Give the products (if any) expected from the treatment of each of the following compounds with ozone followed by aqueous hydrogen peroxide. Do not draw any byproducts.
Describe the early and modern adult perceptions of children : Describe the early and modern adult perceptions of children and adolescents. Discuss the inextricable manner in which these views have been codified in the American legal system.

Reviews

Write a Review

Other Subject Questions & Answers

  Current work setting or previous nursing experience

Briefly describe a situation in your current work setting or previous nursing experience that involved an issue in which poor communication played a part.

  Understanding the strategies or interventions

I also need help understanding the strategies or interventions that would work best when dealing with the following individuals:

  Analysis of connotative language about the red room

I have to write an analysis of connotative language about the red room in Jane Eyre. I see the many references to red but I don't get what the motif represents; blood, passion, Gothic mood?

  Us supreme courts evolution and role for future

The Constitution is rather vague about the make-up, size, and responsibility of the Supreme Court.

  Elements of the criminal justice system

List, compare and contrast the 3 elements of the criminal justice system. How do these elements function to create our modern day Criminal Justice System?

  Modern hertzsprung-russell diagram

Sketch out the modern Hertzsprung-Russell(H-R) diagram. Label the important luminosity classes. Do not put actual numbers on the axes, but rather show with arrows the direction each axis(luminosity, temperature) is increasing.

  Industry research

To correctly identify opportunities and threats to their product, Marketing Managers need to understand the marketing environment in which the products operate.

  Focus of the structural-functional approach

Which of the following best describes the focus of the structural-functional approach?

  Define cultural diversity

What are three ways a manager contributes to the success of an organization?  How would you define cultural diversity?

  Explanation of dependent personality disorder

Can someone help me with in-depth explanation of Dependent Personality Disorder, Delusional Disorder - Erotomanic Type, and Borderline Personality Disorder?

  According to the tanglewood case book

Recruiting is the first stage in which organizational plans for staffing come into contact with the labor market for employees. Before making any new recruiting effort, an organization needs to carefully consider the methods available and balance out..

  Community service and handling systemic challenges

Community service: Explain what you have done to make your community a better place to live. Give examples of specific projects in which you have been involved over time.

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