**Given:**- MB = 80 - Q- MC = 20 + Q- P = 30**Equilibrium with Nonmarginal Pricing**What is the Market Price, Quantity, Consumer Surplus, Producer Surplus, Total Surplus, and Deadweight Loss?To solve the problem of finding the equilibrium with nonmarginal pricing, follow these steps:1. **Market Price (P):** It's provided as 30.2. **Quantity at Equilibrium (Q):** Set MB = MC to solve for Q: \[ 80 - Q = 20 + Q \] \[ 60 = 2Q \implies Q = 30 \]3. **Consumer Surplus (CS):** The area above the price level and below the demand curve (MB). Calculate using the formula for the area of a triangle: \[ CS = \frac{1}{2} \times (80 - 30) \times 30 = \frac{1}{2} \times 50 \times 30 = 750 \]4. **Producer Surplus (PS):** The area below the price level and above the supply curve (MC). Calculate using the formula for the area of a triangle: \[ PS = \frac{1}{2} \times (30 - 20) \times 30 = \frac{1}{2} \times 10 \times 30 = 150 \]5. **Total Surplus (TS):** The sum of consumer surplus and producer surplus: \[ TS = CS + PS = 750 + 150 = 900 \]6. **Deadweight Loss (DWL):** With a price set below the equilibrium level, calculate the loss in total surplus due to inefficiency. The loss occurs because the quantity produced is less than in a competitive market scenario, but without additional information, exact calculation isn't possible here. This scenario exemplifies fundamental economic principles and aids in understanding the implications of nonmarginal pricing in markets.

market price can be defined as the price which is determined by the market forces ,which means price…

Answered: GIVEN: MB = 80 - Q МС %3D 20 + Q P = 30…

GIVEN: MB = 80 - Q МС %3D 20 + Q P = 30 %3D Equilbrium with Nonmarginal Pricing What is the Market Price, Quantity, Consumer Surplus Producer Surplus Total Surplus and

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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