Home / Questions / Consider a market where demand is: P = 70 - Q and supply is S: P = Q. Equilibrium quantity
Consider a market where demand is: P = 70 – Q and supply is S: P = Q.
Equilibrium quantity Qe is
35
36
45
56
Equilibrium price Pe is
$34
$35
$36
$37
Consumer surplus CS is
$610
$612.5
$615
$648
Producer surplus PS is
$610
$612.5
$615
$648
Total surplus TS is
$1,222
$1,223
$1,224
$1,225
Construct a budget neutral subsidy in the above market.
Post-subsidy quantity Q’ is
35
36
45
56
Post-subsidy price P’ is
$34
$35
$36
$37
Consumer surplus CS’ is
$610
$612.5
$615
$648
Producer surplus PS’ is
$610
$612.5
$615
$648
Total surplus TS is (do not forget to account for the subsidy expenditure SE)
$1,222
$1,223
$1,224
$1,225
The basic characteristic of the long run is that:
A. barriers to entry prevent new firms from entering the industry.
B. the firm has sufficient time to change the size of its plant.
C. the firm does not have sufficient time to cut its rate of output to zero.
D. a firm does not have sufficient time to change the amounts of any of the resources it employs.
The law of diminishing returns indicates that:
A. as extra units of a variable resource are added to a fixed resource, marginal product will decline beyond some point.
B. because of economies and diseconomies of scale a competitive firm's long-run average total cost curve will be U-shaped.
C. the demand for goods produced by purely competitive industries is downsloping.
D. beyond some point the extra utility derived from additional units of a product will yield the consumer smaller and smaller extra amounts of satisfaction.
Variable cost is:
A. the cost of producing one more unit of capital, say, machinery.
B. any cost which does not change when the firm changes its output.
C. average total cost multiplied by the firm's output.
D. any cost that rises with output in the short run.
Nov 05 2017 Read more Less More
In addition to the infiltration determined in Problem 16-21, ground water seepage due to gravity also occurs. Determine the thickness of a suitable drainage layer require...
May 24 2020The beta of the stock is 1.00 and expected return on the market is 10%. A share of stock sells for $40 today. The stock is expected to pay dividends of $1.0 in one year. ...
Aug 13 2020I have $250,000 in a savings account, earning a general interest rate of 2%. How long will it take for this money to double in nominal value? Solve using the Rule of 70 ...
Feb 08 2020Share Issues and Market Prices: Is Value Generated or Lost by Share Issues? (Medium)a. XYZ Corporation had 158 million shares outstanding on January 1, 2012. On February ...
May 26 2020Over the past few months, Juan and his colleagues have analyzed the current business situation and identified target markets for his firm's personal care products. Fi...
Dec 14 2019Should it lease its facilities to avoid borrowing money?
Nov 27 2019(a) The OSI protocol stack includes Session and Presentation layers in addition to its Application layer. TCP/IP applications, such as Telnet and FTP, have no such separa...
Jul 06 2020A company has been the first choice for 70% the employment seekers in a certain region. A new management of this company has implemented new policies and think that the p...
Apr 25 2020Using the data below (given in millions of $U.S.), compute GDP, national income, and net domestic product. Corporate profits……………………………… 1,200 Gross private domestic inve...
May 26 2020Suppose that De Beers is a single-price monopolist in the market for diamonds. De Beers has five potential customers: Raquel, Jackie, Joan, Mia, and Sophia. Each of the...
Mar 29 2020
Welcome to MyCourseHelp Services, World's leading Academic solutions provider with Millions of Happy Students.
