Homework Help is Here – Start Your Trial Now!
Business
Economics
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

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter11: Price And Output Determination: Monopoly And Dominant Firms
Section: Chapter Questions
Problem 3E
See similar textbooks
icon
Related questions
Question

Solve only Question 27 and 28 .....I  want correct ans wrong answer then I will give you down upvote......

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
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
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Profit Maximization
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Economics: Applications, Strategies an…
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS