Reference no: EM132193902

Consider that the C & A Lawnmower Firm operates in a highly competitive industry. The MB(Q) = 100, which means that the price of each service is $100. The estimate for the total cost is given by C(Q) = 100,000 + 20Q + 0.1Q2. Use this information to answer the following questions.

a. What is net benefit maximizing level of output?

b. What is the total benefit function?

c. What is the maximum net benefit?

Please include the letter with each part of your answer (a, b, c).

Consider the following benefit and cost functions: B(X) = 600X -12X2 and C(X) = 20X2. Use this information to answer the following questions.

a. What are the MB and the MC?

b. What level of X maximizes the net benefit?

c. What is the net benefit (NB)?

Please include the letter with each part of your answer (a, b, c).

Consider a market supply and demand represented by the following: Qs = 4P - 120 and Qd = 1000 - 10P. Use this information to answer the following questions.

a. Calculate equilibrium price and quantity.

b. What is the consumer surplus?

c. If the government imposes an excise tax of $2, what would be the new equilibrium price, quantity?

d. What would happen to the consumer surplus?

Please include the letter with each part of your answer (a, b, c, d).

Quarterly demand and supply for the Petram Company is given by Qd = 1000 + 0.5M + 0.25A - 100P and Qs = -750 + 100P, where Q is quantity per quarter, P is price, M is income, and A is advertising expenditure. Suppose that A = 1000 and M =20,000, and answer the following questions.

a. What is the equilibrium price and quantity?

b. What is the inverse demand?

Please include the letter with each part of your answer (a, b).