Fill-up the following table relating to monopoly operations and regulations given the following total cost and inverse demand functions:Total Cost: TC = Q2 + 100;Inverse Demand: P = 120 – Q No regulationMC-Pricing (MC=P*)w/ Lump Sum Tax (T=75)w/ Specific Tax (t=10)Profit Equation120Q-2Q2-Q2-100120Q-2Q2-Q2-100120Q-2Q2-Q2-100-75120Q-2Q2-Q2-100-10QQ*30403027.5P*90809092.5TR at Q*2700320027002543.75TC at Q*1000170010751131.25Profit at Q*1700150016251412.5Tax RevenueNilNil75275Consumer Surplus450800450756.25Producer Surplus1800320018001512.5Deadweight loss150Nil150125.95Choose one type of regulation you analyzed and graphically illustrate the results.

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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

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

Total Cost: TC = Q² + 100;
Inverse Demand: P = 120 – Q

No regulation	MC-Pricing (MC=P*)	w/ Lump Sum Tax (T=75)	w/ Specific Tax (t=10)
Profit Equation	120Q-2Q2-Q2-100	120Q-2Q2-Q2-100	120Q-2Q2-Q2-100-75	120Q-2Q2-Q2-100-10Q
Q*	30	40	30	27.5
P*	90	80	90	92.5
TR at Q*	2700	3200	2700	2543.75
TC at Q*	1000	1700	1075	1131.25
Profit at Q*	1700	1500	1625	1412.5
Tax Revenue	Nil	Nil	75	275
Consumer Surplus	450	800	450	756.25
Producer Surplus	1800	3200	1800	1512.5
Deadweight loss	150	Nil	150	125.95

Choose one type of regulation you analyzed and graphically illustrate the results.

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