Socially optimal amount of output

Assignment Help Microeconomics
Reference no: EM132541915

A monopolist with constant marginal cost is producing where elasticity = 3. The government is considering subsidizing the marginal costs of the monopolist. What level of subsidy should the government choose if it wants the monopolist to produce the socially optimal amount of output?

Reference no: EM132541915

Questions Cloud

Find what is the company product cost per unit : Find What is the company's product cost per unit using variable costing? Direct materials costs were $6 per unit, while direct labour and variable manufacturing
Marginal rate of substitution for consumer : Plot this consumer's indifference curves. What is the marginal rate of substitution for this consumer?
Discussion on how your discussion will be evaluated : Refer to the Discussion Forum Grading Rubric under the Settings icon above for guidance on how your discussion will be evaluated.
Compare juvenile justice system-criminal justice system : Compare the juvenile justice system and the criminal justice system decision-making process to grant probation.
Socially optimal amount of output : What level of subsidy should the government choose if it wants the monopolist to produce the socially optimal amount of output?
What is the company product cost per unit : Last month, the company produced 20,000 units and sold 8,000 units. What is the company's product cost per unit using absorption costing?
Decision-making process different for probation for parole : How is the decision-making process different for probation than for parole? What other factors are considered in the decision to grant probation?
GRM5035 Research Methods for Business Assignment : GRM5035 Research Methods for Business Assignment Help and Solution, Gulf College - Assessment Writing Service - An ability to design research proposals
Why communication skills important to organizational success : In a 250-300 word response, discuss why communication skills are important to organizational success and why recruiters focus so much on finding leads.

Reviews

Write a Review

Microeconomics Questions & Answers

  The free rider problem

Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.

  Failure of the super committee is good thing for economy

Some commentators have argued that the failure of the “Super committee” is good thing for the economy?  Do you agree?

  Case study analysis about optimum resource allocation

Case study analysis about optimum resource allocation: -  Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..

  Fixed cost and vairiable cost

Questions:  :   Which of the following are likely to be fixed costs and which variable costs for a chocolate factory over the course of a month?  Explain your choice.

  Problem - total cost, average cost, marginal cost

Problem - Total Cost, Average Cost, Marginal Cost: -  Complete the following table of costs for a firm.  (Note: enter the figures in the  MC   column  between  outputs of  0 and 1, 1 and 2, 2 and 3, etc.)

  Oligopoly and demand curve problem

Problem based on Oligopoly and demand curve,  Draw and explain the demand curve facing each firm, and given this demand curve, does this mean that firms in the jeans industry do or do not compete against one another?

  Impact of external costs on resource allocation

Explain the impact of external costs and external benefits on resource allocation;  Why are public goods not produced in sufficient quantities by private markets?  Which of the following are examples of public goods (or services)? Delete the incorrec..

  Shifts in demand and movements along the demand curve

Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..

  Article review question

Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:

  Long-term growth, international trade & globalization

Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..

  European monetary union (emu) in crisis

"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"

  Development game “settlers of catan”

Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"

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