Suppose that a monopoly faces the short-run cost function (C=1,000+2 Q^{2}) and the inverse demand curve (p=500-0.5
Question:
Suppose that a monopoly faces the short-run cost function \(C=1,000+2 Q^{2}\) and the inverse demand curve \(p=500-0.5 Q\). How does charging the monopoly a per-unit tax of \(t=100\) affect the monopoly optimum and its profits? If a profits tax were instead imposed, would it affect the monopoly optimum? What would be the rate of a profits tax that raises the same amount of tax revenue as the specific tax?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
Before the specific tax is imposed the profit maximizing monopolist chooses to produce whe...View the full answer
Answered By
Aysha Ali
my name is ayesha ali. i have done my matriculation in science topics with a+ . then i got admission in the field of computer science and technology in punjab college, lahore. i have passed my final examination of college with a+ also. after that, i got admission in the biggest university of pakistan which is university of the punjab. i am studying business and information technology in my university. i always stand first in my class. i am very brilliant client. my experts always appreciate my work. my projects are very popular in my university because i always complete my work with extreme devotion. i have a great knowledge about all major science topics. science topics always remain my favorite topics. i am also a home expert. i teach many clients at my home ranging from pre-school level to university level. my clients always show excellent result. i am expert in writing essays, reports, speeches, researches and all type of projects. i also have a vast knowledge about business, marketing, cost accounting and finance. i am also expert in making presentations on powerpoint and microsoft word. if you need any sort of help in any topic, please dont hesitate to consult with me. i will provide you the best work at a very reasonable price. i am quality oriented and i have 5 year experience in the following field.
matriculation in science topics; inter in computer science; bachelors in business and information technology
_embed src=http://www.clocklink.com/clocks/0018-orange.swf?timezone=usa_albany& width=200 height=200 wmode=transparent type=application/x-shockwave-flash_
4.40+
11+ Reviews
14+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
can someone solve this Modern workstations typically have memory systems that incorporate two or three levels of caching. Explain why they are designed like this. [4 marks] In order to investigate...
-
CANMNMM January of this year. (a) Each item will be held in a record. Describe all the data structures that must refer to these records to implement the required functionality. Describe all the...
-
An impulse of 2 . 1 N s directed south is imparted on a tennis ball with mass 6 0 g . If the ball had a velocity of 1 5 m / s north before contact, what is the velocity of the ball after contact ?
-
Taylors 2022 health insurance premiums of $7,800 are paid by her employer. During 2022, Taylor requires surgery on her vocal chords. The cost of the surgery is $10,000 and Taylors insurance covers...
-
Obtain all data necessary from the worksheet prepared for Artisan Wines in Problem 12.6A at the end of Chapter 12. Then follow the instructions to complete this problem. INSTRUCTIONS 1. Prepare a...
-
Draw the free-body diagram of member AB, which is supported by a roller at A and a pin at B. Explain the significance of each force on the diagram. (SeeFig) 390 Ib 800 Ib ft -4 8 ft t- 3 ft 30
-
In 2014, political consulting firm Cambridge Analytica developed an app designed to create digital profiles of individuals via their information. Cambridge Analytica collected the data by inviting...
-
Parent Co. invested $1,000,000 in Sub Co. for 25% of its outstanding stock. Sub Co. pays out 40% of net income in dividends each year. Instructions Use the information in the following T-account for...
-
4. Consider a quantum system Q described by a Hilbert space H. (a) Suppose we are given a subspace Ho of H and a linear map from kets in Ho to others in h. That is, Vo)), in a linear way. This map...
-
A monopoly with a constant marginal cost \(m\) has a profit-maximizing price of \(p_{1}\). It faces a constant elasticity demand curve with elasticity . After the government applies a specific tax of...
-
Introduced in the nineteenth century, bicycles are the principal means of transportation in many parts of the world. Suppose there is a \(60 \%\) markup on the marginal cost of a bicycle tire that...
-
Repeat Exercise 4.64 if X and Y are not independent and XY = 1.
-
How many substrings aab are in www, where w = aabbab?
-
school store sells pens for $0.35 each d pencils for $0.15 each. Anthony spent 2.80 to buy a total of 12 pens and pencils. How many pens did Anthony buy?
-
You write pseudocode for modules as you would for other programs. Question 2 2 options: True False
-
A corporate bond pays 8% annual coupon rate and has $1,000 par value. It will mature in 5 years and its yield to maturity is 9%. Calculate: (1) the bond's price. (2) its Macaulay duration.
-
EE101 Task. 1. Implement a C++ class named Pendulum to represent a simple pendulum. 2. The class should have private member variables for the length of the pendulum (length) and the acceleration due...
-
In a certain medium, the direction of current density J points in the radial direction in cylindrical coordinates and its magnitude is independent of both and z. Determine J, given...
-
Use the following data to answer the next two (2) questions: Product 1 Product 2 Product 3 Direct Material Cost $25,000 $30,000 $35,000 Direct Labor Cost $30,000 $40,000 $50,000 Direct Labor Hours...
-
Using a pair of graphs like those in Figure 10.10, illustrate a situation in which the United States would be an exporter of the good in question, and identify the equilibrium.
-
If bad weather causes the supply of sugar in RoW to fall, how will this affect the U. S. market if the import quota described by Figure is in place? Does this explain why the U. S. and world prices...
-
Explain how an excise tax levied on a constant- cost industry produces a deadweight loss. Use a graph to show the loss in consumer and producer surplus from the excise tax. Is the loss in total...
-
Zigma purchased 100% of Standard for $525K on January 1 st 2XX1. The information below is from the December 31, 2XX1 accounts. At the time of purchase all FMV of all assets and liabilities equal book...
-
what would the net profit be? Calculate it, show the formula, do the math, and explain. In case you do not exercise the option, what would the net profit be? Calculate it, show the formula do the...
-
Aijla suggested her company that they should consider financial statement analysis to identify potential fraud by comparing changes in items between different financial periods. What kind of analysis...
Study smarter with the SolutionInn App