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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 72 v units, Barbara will charge a price of 22 Barbara will make a profit of 1296 v

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 72 v units, Barbara will charge a price of 22 Barbara will make a profit of 1296 v

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Hello, I need some assistance answering this question and can you show me how you worked out the problem. Also, can you circle or put the answers to each question in bold so that I know which answer is for which question. Thank you

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 72 v units. Barbara will charge a price of 22 Barbara will make a profit of 1296 v Suppose now the government imposes a tax of 4 dollars on each unit sold. With the tax: Barbara will produce 64 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 1024 In addition to the tax, suppose the government imposes a business levy (a fixed cost) of $500. With this levy: Barbara will produce 64 v units. Barbara will charge a price 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 524
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. Barbara will produce 72 v units. Barbara will charge a price of 22 Barbara will make a profit of 1296 v Suppose now the government imposes a tax of 4 dollars on each unit sold. With the tax: Barbara will produce 64 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 1024 In addition to the tax, suppose the government imposes a business levy (a fixed cost) of $500. With this levy: Barbara will produce 64 v units. Barbara will charge a price 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 524
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