A good can be produced in a competitive industry at a cost of $10 per unit. There
Question:
A good can be produced in a competitive industry at a cost of $10 per unit. There are 100 consumers are each willing to pay $12 each to consume a single unit of the good (additional units have no value to them.) What is the equilibrium price and quantity sold? The government imposes a tax of $1 on the good. What is the deadweight loss of this tax?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (12 reviews)
The equilibrium price is 10 and the ...View the full answer
Answered By
John Kago
Am a processional practicing accountant with 5 years experience in practice, I also happens to have hands on experience in economic analysis and statistical research for 3 years. am well conversant with Accounting packages, sage, pastel, quick books, hansa world, etc, I have real work experience with Strata, and SPSS
4.70+
31+ Reviews
77+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Good X is produced in a competitive market using input A. Explain what would happen to the supply of good X in each of the following situations: a. The price of input A increases. b. An excise tax of...
-
Multiple Choice Questions: Use the diagram to answer questions 1 through 4. .:. 1. Currently, it is not possible to produce at a. point A. b. point B. c. point E. d. point G. e. either point E or...
-
A normal good is being produced in a constant-cost, perfectly competitive industry. Initially, each firm is in long-run equilibrium. a. Graphically illustrate and explain the short-run adjustments...
-
Given the following data: Calculate ÎH for the reaction On the basis of enthalpy change, is this a useful reaction for the synthesis of ammonia? AH - 92 kJ () + AH = -484 k (g) ON OH 88
-
Describe how a local firm might be able to utilize college/university interns to generate future applicants for anticipated job openings within the next one to two years.
-
A wave satisfying ? eq. passes from one medium in which the phase velocity for all wavelengths is v 1 to another medium in which the phase velocity is v 2 . The incident wave gives rise to a...
-
Machine learning and deep learning are both used today to create AI applications that learn from experience. What is the fundamental difference between the ways each of these technologies learn?
-
LIFT Elevator Company manufactures small hydroelectric elevators. One of the direct materials used is heavy-duty carpeting for the floor of the elevator. The direct materials quantity standard for...
-
A horizontal force of 5 newton is applied to a 2 kg block initially at rest on a rock horizontal surface. what is it\'s acceleration if the coefficient of friction is 0 . 2
-
Here are the number of wins for the 30 U.S. National Basketball Association (NBA) teams for the 20122013 NBA season. a. Create a grouped frequency table for these data. b. Create a histogram based on...
-
Suppose that the demand curve is given byD(p) = 10 p. What is the gross benefit from consuming 6 units of the good?
-
Suppose that a monopolist sells to two groups that have constant elasticity demand curves, with elasticity 1 and 2 . The marginal cost of production is constant at c. What price is charged to each...
-
What is Gauss-Jordan elimination?
-
Our financial projections assume that S'Naps will be in operation at the beginning of Year 1. We estimate that we will capture 1% of our target market (international and domestic business/leisure...
-
A temperature field T(x,t) in a one-dimensional structure (x = [0, L]) is determined by 1 ar 8T the following governing equation Based on previous experience, one a t proposes that the temperature...
-
A confectionery factory uses imported cocoa beans to make small chocolate bars. Randomly chosen chocolate bars are tasted and given a taste quality score; a numerical value ranging from 0 to 10....
-
Example (5)ASS The following information was available to R.R. Company 1- Sales at March was $ 40,000 2- Sales forecasted as follows: April May June $ 50,000 80,000 60,000 50,000 July August 40,000...
-
Use Excel to prepare in good form a statement of revenues, expenditures, and changes in fund balance for the General Fund for the year ended December 31, 2023. (See Illustration 4-5 in the textbook...
-
For y = annual household expenditure for auto maintenance and repair, what independent variables could help explain the amount of money a household spends per year for this purpose?
-
Periwinkle Company is a multinational organization. Its Parts Division is located in Lavender Land, while its Assembly Division is located in North Orchid. During the current year Periwinkle Companys...
-
Mr. Fogg is planning an around-the-world trip. The utility from the trip is a function of how much he spends on it (Y) given by U(Y) = log Y Mr. Fogg has $10,000 to spend on the trip. If he spends...
-
Sometimes economists speak of the certainty equivalent of a risky stream of income. This problem asks you to compute the certainty equivalent of a risky bet that promises a 50-50 chance of winning or...
-
Suppose Molly Jock wishes to purchase a high definition television to watch the Olympic wrestling competition in London. Her current income is $20,000, and she knows where she can buy the television...
-
Five relevant types of power include: coercive, legitimate, reward, referent, and expert. What power do you think you would find most motivating in the workplace? Why? Include an example in your...
-
Assume that you have received notice that you are being interviewed for that job. You now have to prepare for the upcoming interview. Part of your preparation is to plan for how you will respond to...
-
Based on the selected article Behind the Mask: The Politics of Employee Appraisal ,answer the following questions: What is the basic theme of the article? Try to state it in just one or two...
Study smarter with the SolutionInn App