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Consider a monopoly firm with constant marginal costs and ask what happens to the price charged when a quantity tax is imposed, the price goes up by _ amount of the tax. O A 1/4 ов 1 оС 1/2 OD 2

Consider a monopoly firm with constant marginal costs and ask what happens to the price charged when a quantity tax is imposed, the price goes up by _ amount of the tax. O A 1/4 ов 1 оС 1/2 OD 2

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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5 Consider a monopoly firm with constant marginal costs and ask what happens to the price charged when a quantity tax is imposed, the price goes up by _ amount of the tax. O A 1/4 ов 1 оС 1/2 OD 2 6 Consider a pure exchange economy. Suppose uĄ(x, x;) = (x)ª(x3)'-e, wa = (1,0) ug(xj,x;) = min{x}, x;}, w, = (0,1), where o < a < 1, the competitive equilibrium (x},x3), (x}, x;); (1,p2)of this economy is . O A (1 – a, 1 – a), (a, a); (1, :) O B ((a,a), (1 – a, 1 – a);(1, :) ((a, a), (1 – a, 1 – a);(1,) - (1 – a,1 – a), (a, a):(1,) O D
Transcribed Image Text:5 Consider a monopoly firm with constant marginal costs and ask what happens to the price charged when a quantity tax is imposed, the price goes up by _ amount of the tax. O A 1/4 ов 1 оС 1/2 OD 2 6 Consider a pure exchange economy. Suppose uĄ(x, x;) = (x)ª(x3)'-e, wa = (1,0) ug(xj,x;) = min{x}, x;}, w, = (0,1), where o < a < 1, the competitive equilibrium (x},x3), (x}, x;); (1,p2)of this economy is . O A (1 – a, 1 – a), (a, a); (1, :) O B ((a,a), (1 – a, 1 – a);(1, :) ((a, a), (1 – a, 1 – a);(1,) - (1 – a,1 – a), (a, a):(1,) O D
7 Suppose a monopolist' s cost function is c(y) = y? + 10y and the inverse market demand function is p(y) = 100 – -ty. The monopolists' optimal output level y* and maximal profit are and O A 30; 1350 ов 20; 1200 OC 30; 2700 OD 20; 2400 8 Suppose a monopolist s cost function is c(y) = y? + 10y and the inverse market demand function is p(y) = 100 – 2y. If the monopolist is a price taker, i.e., if it considers the market to be a competitive market, the optimal output level y* and maximal profit are_ and_. O A 36; 1296 ов 33; 1350 ос 32;B 1664 OD 30; 1500
Transcribed Image Text:7 Suppose a monopolist' s cost function is c(y) = y? + 10y and the inverse market demand function is p(y) = 100 – -ty. The monopolists' optimal output level y* and maximal profit are and O A 30; 1350 ов 20; 1200 OC 30; 2700 OD 20; 2400 8 Suppose a monopolist s cost function is c(y) = y? + 10y and the inverse market demand function is p(y) = 100 – 2y. If the monopolist is a price taker, i.e., if it considers the market to be a competitive market, the optimal output level y* and maximal profit are_ and_. O A 36; 1296 ов 33; 1350 ос 32;B 1664 OD 30; 1500
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