Barbara is a producer in a monopoly industry. Her demand curve and total cost curve are given by Q = 160 - 4P and TC = 4Q. Barbara will produce 20 v units. Barbara will charge a price of 1024 v Barbara will make a profit of Suppose now the government imposes a tax of 4 dollars on each unit sold. With the tax: Barbara will produce 72 v units. Barbara will receive a price per unit of 20 v. Note: we're looking for the Barbara receives, not the price consumers pay (which will be higher). Barbara will make a profit of 64 In addition to the tax, suppose the government imposes a business levy (a fixed cost) of $500. With this levy: Barbara will produce v units. Barbara will charge a price of Note: we're looking for the Barbara receives, not the price consumers pay (which will be higher). Barbara will make a profit of
Barbara is a producer in a monopoly industry. Her demand curve and total cost curve are given by Q = 160 - 4P and TC = 4Q. Barbara will produce 20 v units. Barbara will charge a price of 1024 v Barbara will make a profit of Suppose now the government imposes a tax of 4 dollars on each unit sold. With the tax: Barbara will produce 72 v units. Barbara will receive a price per unit of 20 v. Note: we're looking for the Barbara receives, not the price consumers pay (which will be higher). Barbara will make a profit of 64 In addition to the tax, suppose the government imposes a business levy (a fixed cost) of $500. With this levy: Barbara will produce v units. Barbara will charge a price of Note: we're looking for the Barbara receives, not the price consumers pay (which will be higher). Barbara will make a profit of
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Need help with this Economics equation (all parts)
Transcribed Image Text:Barbara is a producer in a monopoly industry. Her demand curve and total cost curve are given by Q = 160 - 4P and TC = 4Q.
%3D
Barbara will produce 20
v units.
Barbara will charge a price of
1024 v
Barbara will make a profit of
Suppose now the government imposes a tax of 4 dollars on each unit sold. With the tax:
Barbara will produce 72
v units.
Barbara will receive a price per unit of 20
v. Note: we're looking for the Barbara receives, not the price consumers pay (which
will be higher).
Barbara will make a profit of 64
In addition to the tax, suppose the government imposes a business levy (a fixed cost) of $500. With this levy:
Barbara will produce
v units.
Barbara will charge a price of
Note: we're looking for the Barbara receives, not the price consumers pay (which will be
higher).
Barbara will make a profit of
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