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Suppose that a monopolist sells a product to consumers with an aggregate demand that is downward sloping in quantity, D(Q) = 200 - 2Q. The total cost of producing Q units is C(Q) = 20Q + 2Q2.
a) Instead of a specific tax, an ad valorem tax, of 1/6 is imposed
i. What price-quantity pair would we expect?
ii. What are CS, PS, T, and W?
iii. What is deadweight loss?
Suppose that a rm has the production function given by f(x1,x2)=4SQRT(x1*x2) Let w1 = $64 and w2 = $1. What is the total cost of producing 20 units of output in the long-run?
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If the variable is almost normally distributed does that mean you use common distribution.
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