ADVANCED ANALYSIS Assume the following values for the figures below. Q₁-20 bags. Q2-15 bags. Q3-27 bags. The market equilibrium price is $45 per bag. The price at a is $85 per bag. The price at cis $5 per bag. The price at fis $59 per bag. The price at g is $31 per bag. Apply the formula for the area of a triangle (Area =12x Base x Height) to answer the following questions. (a) (b) $85 $55 8 $45 Efficiency loss from underproduction $35 $5 15 20 Quantity (bags) $85 $59 $45 $31 $5 Efficiency loss from overproduction 20 27 Quantity (bags) Instructions: Enter your answers as a whole number a. What is the dollar value of the total surplus (= producer surplus + consumer surplus) when the allocatively efficient output level is produced? $ What is the dollar value of the consumer surplus at that output level? $[ b. What is the dollar value of the deadweight loss when output level Q2 is produced? What is the total surplus when output level Q2 Is produced? $ c. What is the dollar value of the deadweight loss when output level Q3 is produced? $ What is the dollar value of the total surplus when output level Q3 Is produced?

ADVANCED ANALYSIS Assume the following values for the figures below. Q₁-20 bags. Q2-15 bags. Q3-27 bags. The market equilibrium price is $45 per bag. The price at a is $85 per bag. The price at cis $5 per bag. The price at fis $59 per bag. The price at g is $31 per bag. Apply the formula for the area of a triangle (Area =12x Base x Height) to answer the following questions. (a) (b) $85 $55 8 $45 Efficiency loss from underproduction $35 $5 15 20 Quantity (bags) $85 $59 $45 $31 $5 Efficiency loss from overproduction 20 27 Quantity (bags) Instructions: Enter your answers as a whole number a. What is the dollar value of the total surplus (= producer surplus + consumer surplus) when the allocatively efficient output level is produced? $ What is the dollar value of the consumer surplus at that output level? $[ b. What is the dollar value of the deadweight loss when output level Q2 is produced? What is the total surplus when output level Q2 Is produced? $ c. What is the dollar value of the deadweight loss when output level Q3 is produced? $ What is the dollar value of the total surplus when output level Q3 Is produced?

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

Chapter5: Business And Economic Forecasting

Section: Chapter Questions

Problem 1.2CE: Plot the logarithm of arrivals for each transportation mode against time, all on the same graph....

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