Hello my dear tutor! I just want to ask for help whether the answers in the given pictures are correct. If it's not, please help me recheck and resolve it. Please refer to the given pictures below for the answers. After verifying the given answers shown in the subsequent picture. PLEASE TALLY AND FILL UP AND PROVIDE THE NECESSARY INFORMATION FROM THE TABLE BELOW. Answer also number 2. NOTE: Type only your answers. Please do not handwritten your answers. 1.) Fill-up the following table relating to monopoly operations and regulations given the following total cost and inverse demand functions: No RegulationMC-Pricing(MC = P*)w/ Lump SumTax (T = 75)w/ Specific Tax(t = 10)Profit Equation Q* P* TR at Q* TC at Q* Profit at Q* Tax Revenue Consumer Surplus Producer Surplus Deadweight Loss 2.) Choose one type of regulation you analyzed in number 1 and graphically illustrate the results. NOTE: Type only your answers. Please do not handwritten your answers. Lumpsum tax (T = 75)TC =Q² + 100 + 75TC = Q² + 175Profit maximisation : MC = MR= MR= 120MC2Q20|*= 30Р*= 120 – Q *P *= 12030 = 90Total Revenue = P* Q *= 90x30 = 2700Total Cost =(30)² + 100= 900 + 100 =1000Profit= TR – TC2700 – 10001700Tax Revenue = 75Consumer Surplus(Demand curve ' s Y intercept – Price) x QuantityCS(120 - 90) (30)450} (60) (30)} (90 – 60) (40 – 30)Producer Surplus = 90x30= 1800-DWL == 150-Specific Tax (t=10)Q² + 10Q + 1002Q + 10ТС %3MCMR = 120МС 3D MR2Q + 10 = 12020*= 27.5P *= 12027. 5 = 92. 5TR = 92.5x27. 5 = 2543. 75TC = 27.5² + 10(27. 5) + 100 = 1131. 25Profit= 2543. 751131. 25 = 1412. 5Tax Revenue =100= 10x27. 5= 275(120 – 92. 5) (27.5) = 378. 125(92. 5 – 65) (27.5) + (65 – 10) (27. 5) = 1512. 5} (92. 5 – 55) (40)CS =PS =-DWL == 750 Step 1Given that:TC =Q² + 100P= 120No RegulationMonopolist maximises profit where MC = MRƏTCMC =õeƏTRa(120Q – Q²)MR == 120 – 2QõeМС — MR= 120 – 2Q*= 30P *= 120 – Q *= 120Total Revenue = P* Q *P *30 = 90= 90x30 = 2700Total Cost =(30)2 + 100 = 900 + 100 = 1000Profit3 TR — TС= 2700 – 1000= 1700Таx Revenuе — 0Consumer Surplus(Demand curve ' s Y intercept –Price) x QuantityCS =(120 - 90) (30)= 450{ (60) (30)| (90 – 60)(40 – 30)Producer Surplus= 90x301800DWL == 150MC = P*МС 3D Р120 – Q3Q =120*= 40P *= 12040 = 80|TR = 80x40 = 3200TC402 + 100 := 1700Profit= 3200 – 1700= 1500Тах Revenuие —D 0}(120 – 80) (40)(80)(40) = 1600CS == 800PS =DWL= 0

Given information P=120-Q TC=Q2+100

Answered: Fill-up the following table relating to…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

Hello my dear tutor!

I just want to ask for help whether the answers in the given pictures are correct. If it's not, please help me recheck and resolve it. Please refer to the given pictures below for the answers.

After verifying the given answers shown in the subsequent picture. PLEASE TALLY AND FILL UP AND PROVIDE THE NECESSARY INFORMATION FROM THE TABLE BELOW. Answer also number 2.

NOTE: Type only your answers. Please do not handwritten your answers.

1.) Fill-up the following table relating to monopoly operations and regulations given the following total cost and inverse demand functions:

	No Regulation	MC-Pricing *(MC = P)**	w/ Lump Sum Tax (T = 75)	w/ Specific Tax (t = 10)
Profit Equation
Q*
P*
TR at Q*
TC at Q*
Profit at Q*
Tax Revenue
Consumer Surplus
Producer Surplus
Deadweight Loss

2.) Choose one type of regulation you analyzed in number 1 and graphically illustrate the results.

NOTE: Type only your answers. Please do not handwritten your answers.

Lumpsum tax (T = 75)
TC =
Q² + 100 + 75
TC = Q² + 175
Profit maximisation : MC = MR
= MR
= 120
MC
2Q
20
|
*
= 30
Р*
= 120 – Q *
P *
= 120
30 = 90
Total Revenue = P* Q *
= 90x30 = 2700
Total Cost =
(30)² + 100
= 900 + 100 =
1000
Profit
= TR – TC
2700 – 1000
1700
Tax Revenue = 75
Consumer Surplus
(Demand curve ' s Y intercept – Price) x Quantity
CS
(120 - 90) (30)
450
} (60) (30)
} (90 – 60) (40 – 30)
Producer Surplus = 90x30
= 1800
-
DWL =
= 150
-
Specific Tax (t=10)
Q² + 10Q + 100
2Q + 10
ТС %3
MC
MR = 120
МС 3D MR
2Q + 10 = 120
20
*
= 27.5
P *
= 120
27. 5 = 92. 5
TR = 92.5x27. 5 = 2543. 75
TC = 27.5² + 10(27. 5) + 100 = 1131. 25
Profit
= 2543. 75
1131. 25 = 1412. 5
Tax Revenue =
100
= 10x27. 5
= 275
(120 – 92. 5) (27.5) = 378. 125
(92. 5 – 65) (27.5) + (65 – 10) (27. 5) = 1512. 5
} (92. 5 – 55) (40)
CS =
PS =
-
DWL =
= 750

Step 1
Given that:
TC =
Q² + 100
P
= 120
No Regulation
Monopolist maximises profit where MC = MR
ƏTC
MC =
õe
ƏTR
a(120Q – Q²)
MR =
= 120 – 2Q
õe
МС — MR
= 120 – 2Q
*
= 30
P *
= 120 – Q *
= 120
Total Revenue = P* Q *
P *
30 = 90
= 90x30 = 2700
Total Cost =
(30)2 + 100 = 900 + 100 = 1000
Profit
3 TR — TС
= 2700 – 1000
= 1700
Таx Revenuе — 0
Consumer Surplus
(Demand curve ' s Y intercept –
Price) x Quantity
CS =
(120 - 90) (30)
= 450
{ (60) (30)
| (90 – 60)(40 – 30)
Producer Surplus
= 90x30
1800
DWL =
= 150
MC = P*
МС 3D Р
120 – Q
3Q =
120
*
= 40
P *
= 120
40 = 80
|
TR = 80x40 = 3200
TC
402 + 100 :
= 1700
Profit
= 3200 – 1700
= 1500
Тах Revenuие —D 0
}(120 – 80) (40)
(80)(40) = 1600
CS =
= 800
PS =
DWL
= 0

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions