5. The demand for cement is given by P= 40 - 8Q, where P is the unit price in kroner (SEK) and Q is quantity demanded (measured as tons of cement per day). A cement industry characterized by perfect competition has a short-run supply function given by P=4+Q. (Note that 4+ Q is the industry's marginal cost) im. 5b Calculate the industry's producer surplus and consumer surplus in equilibrium. Illustrate the surpluses and the equilibrium from subtask 5a in a figure. 50 Calculate the size of the unit tax that when paid by the producers leads until the socially optimal level of production is reached.

5. The demand for cement is given by P= 40 - 8Q, where P is the unit price in kroner (SEK) and Q is quantity demanded (measured as tons of cement per day). A cement industry characterized by perfect competition has a short-run supply function given by P=4+Q. (Note that 4+ Q is the industry's marginal cost) im. 5b Calculate the industry's producer surplus and consumer surplus in equilibrium. Illustrate the surpluses and the equilibrium from subtask 5a in a figure. 50 Calculate the size of the unit tax that when paid by the producers leads until the socially optimal level of production is reached.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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