25-28. A monopolist has a short run cost function given by: TC = 0.1q² +3q + 40 q≥2 where q is output per day and TC is the total cost per day in dollars. The firm has fixed costs of $30 (already included in the TC equation above). The TC equation generates minimum average costs of $7 (per unit) at q =20. Questions 25 through 28 concern this firm. 25. Suppose that the firm faces an industry demand curve given by the equation P = 24 -0.15Q We know that the number of units produced by the firm per day in the short run is: A) 17 B 21 C) 26 D) 32 E) 36 F) 38 H) 46 I) 50 J) none of the above 26. Continuing question 25, the price charged by the firm in the short run is: A) $24.00 B) $18.80 D) $16.80 E) $15.40 G) $13.20 H) $12.00 J) none of the above C) $17.70 I) $11.20 B) $118.80 H) $36.70 10 F) $14.60 Page 11 of 16 27. Imagine now that a tax of $5 per unit is placed on the output in this industry. How much of this tax will be borne by the monopolist (i.e., what will be the seller's share)? A) $1.00 B) $1.50 C) $2.00 I) $4.50 G) $3.20 F) $2.60 D) $2.40 E) $2.50 J) none of the above H) $3.50 C) $96.70 I) $31.20 28. The tax discussed in Question 27 will cause excess burden. How much is the excess burden of the tax on the monopolist? A) $37.20 G) $63.00 G) 42 D) $86.80 E) $80.50 F) $75.60 J) none of the above
25-28. A monopolist has a short run cost function given by: TC = 0.1q² +3q + 40 q≥2 where q is output per day and TC is the total cost per day in dollars. The firm has fixed costs of $30 (already included in the TC equation above). The TC equation generates minimum average costs of $7 (per unit) at q =20. Questions 25 through 28 concern this firm. 25. Suppose that the firm faces an industry demand curve given by the equation P = 24 -0.15Q We know that the number of units produced by the firm per day in the short run is: A) 17 B 21 C) 26 D) 32 E) 36 F) 38 H) 46 I) 50 J) none of the above 26. Continuing question 25, the price charged by the firm in the short run is: A) $24.00 B) $18.80 D) $16.80 E) $15.40 G) $13.20 H) $12.00 J) none of the above C) $17.70 I) $11.20 B) $118.80 H) $36.70 10 F) $14.60 Page 11 of 16 27. Imagine now that a tax of $5 per unit is placed on the output in this industry. How much of this tax will be borne by the monopolist (i.e., what will be the seller's share)? A) $1.00 B) $1.50 C) $2.00 I) $4.50 G) $3.20 F) $2.60 D) $2.40 E) $2.50 J) none of the above H) $3.50 C) $96.70 I) $31.20 28. The tax discussed in Question 27 will cause excess burden. How much is the excess burden of the tax on the monopolist? A) $37.20 G) $63.00 G) 42 D) $86.80 E) $80.50 F) $75.60 J) none of the above
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Solve only Question 27 and 28 .....I want correct ans wrong answer then I will give you down upvote......
Transcribed Image Text:25-28. A monopolist has a short run cost function given by:
TC = 0.1q² + 3q + 40
q≥2
where q is output per day and TC is the total cost per day in dollars. The firm has fixed costs of $30
(already included in the TC equation above). The TC equation generates minimum average costs of
$7 (per unit) at q = 20. Questions 25 through 28 concern this firm.
25. Suppose that the firm faces an industry demand curve given by the equation
P = 24 -0.15Q
We know that the number of units produced by the firm per day in the short run is:
A) 17
B 21
C) 26
D) 32
E) 36
F) 38
H) 46
I) 50
J) none of the above
26. Continuing question 25, the price charged by the firm in the short run is:
A) $24.00 B) $18.80
D) $16.80
E) $15.40
C) $17.70
I) $11.20
G) $13.20 H) $12.00
J) none of the above
10
F) $14.60
C) $96.70
I) $31.20
Page 11 of 16
27. Imagine now that a tax of $5 per unit is placed on the output in this industry. How much of this
tax will be borne by the monopolist (i.e., what will be the seller's share)?
A) $1.00
B) $1.50
C) $2.00
I) $4.50
F) $2.60
G) $3.20
H) $3.50
D) $2.40 E) $2.50
J) none of the above
G) 42
28. The tax discussed in Question 27 will cause excess burden. How much is the excess burden of
the tax on the monopolist?
A) $37.20 B) $118.80
G) $63.00 H) $36.70
D) $86.80 E) $80.50 F) $75.60
J) none of the above
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