Question 1 libertyville has two optometrists dr smith s and

Assignment Help Microeconomics
Reference no: EM13375536

Question 1. Libertyville has two optometrists, Dr. Smith (S) and Dr. Jones (S). Each optometrist can choose to advertise his service or not. The net revenue to each optometrist, in thousands of dollars, is listed on the payoff matrix below. Answer questions a through c:

a. Does Dr. Smith have a dominant strategy?
b. Does Dr. Jones have a dominant strategy?
c. Does a Nash equilibrium exist for this game?

788_Calculate the tax revenue in the post-tax equilibrium.png

Question 2. Suppose the market for cigarettes is characterized by the following information:

Qd = 70 - 5P [Demand] Qs = 3P - 10 [Supply]

Suppose the government imposes a sales tax of $2 per unit. Answer questions (i) through (v) below:

i) Calculate the magnitude of the consumer surplus and producer surplus in the pre-tax equilibrium.
ii) Calculate the tax revenue in the post-tax equilibrium.
iii) Calculate the change in consumer surplus due to the sales tax.
iv) Calculate the change in producer surplus due to the sales tax.
v) Calculate the Dead-Weight-Loss due to the sales tax.

Reference no: EM13375536

Questions Cloud

Contemplating awarding a contract to the azusa : contemplating awarding a contract to the azusa manufacturing company for the assembly of wiring harnesses. included in
1 explain what effect an expansionary fiscal policy would : 1. explain what effect an expansionary fiscal policy would have on the price level and real gdp starting from full
1name 5 stylized facts about the business cycle2 rank order : 1.name 5 stylized facts about the business cycle.2. rank order these three ideas from most optimistic about how a
1 a newspaper recently lowered its price from 3 to 1 as it : 1 a newspaper recently lowered its price from 3 to 1. as it did the number of newspapers sold increased from 240000 to
Question 1 libertyville has two optometrists dr smith s and : question 1. libertyville has two optometrists dr. smith s and dr. jones s. each optometrist can choose to advertise his
Present your solution to the following problem in an excel : present your solution to the following problem in an excel document.problem 1cool beans company has 30000 shares of 2
Kellys boutique nbspcash budgetsee the attachment for full : kellys boutique nbspcash budgetsee the attachment for full information about nbspkellys boutiquenbspattachment- unit 7
Explain how the us government managed to accumulate a debt : explain how the us government managed to accumulate a debt of over 14 trillion. to whom does it owe this debt? is the
Explain how the us government managed to accumulate a debt : explain how the us government managed to accumulate a debt of over 14 trillion. to whom does it owe this debt? is the

Reviews

Write a Review

Microeconomics Questions & Answers

  Why might a profitable motel shut down in the long run

Which of the following is (are) most likely to be produced under conditions resembling perfect competition - automobiles, beer, corn, diamonds, and eggs. Defend your answer in economic terms.

  What should be the price of the policy

The company estimates the probability of no damage to be 0.60, the proof damage between $0 and $10,000 to be 0.25, and the probability of damage between $10,000 and $25,000 to be 0.12. If the company wants to make a profit of $200 above the expect..

  Discuss if the entrant is better off with or without ability

Consider now that the entrant, if fought, has the possibility of withdrawin from the industry (at a loss of 1 for the entrant and a gain of 8 for the incumbent), or staying (at a loss of 5 for each player).

  Determine the present value of stream of

An owner can lease her building for $120,000 per year for three years. The explicit cost of maintaining the building is $40,000, and the implicit cost is $55,000. All revenues are received

  Relation between average product and average variable cost

What is the relationship between the average variable cost and marginal cost and relation between average product and average variable cost?

  Draw her budget constraint

Suppose also that her utility function is given by the equation u(M, P) = 2M + P. What combination of meat and potatoes should she buy to maximize her utility? (Hint: Meat and potatoes are perfect substitutes.)

  What must an entrepreneur do to earn a profit

What must an entrepreneur do to earn a profit? How do the actions of firms earnings profits influence the value of resources? What happens to the value of resources when losses are present? If a firm making losses goes out of business, is this bad? W..

  Assume you are a u.s. citizen and currently you can exchange

Assume you are a U.S. citizen and currently you can exchange $180 (USD) for 125 GBP (British Pounds). What is the indirect quote relating the USD to the GBP?

  Effect of increase in wage

The output effect of an increase in the wage comes about because higher wages:

  Information of oligopoly pricing

Mr. Smith is president of a firm that is the industry price leader; that is, it sets the price and other firms sell all they want at that price. The other firms act as perfect competitors.

  To increase revenue and profits of a firm

In attempt to increase revenue and profits, a firm is considering a 4 percent increase in price and an 11 percent increase in advertising.

  Explain linear programming problem

My problem needs to be presented in paragraph form and reflected in a LP equation, showing the objective function and the constraints.

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