Can you help me to draw a graph too.When Big Top maximizes profit, what is the consumer surplus and producer surplus and is the circus efficient? Explain why or why not. PriceQuantityTotal CostTotal RevenueMarginal RevenueMarginal Costs2001,000000181001,6001,800186162002,2003,200146143002,8004,200106124003,4004,80066105004,0005,0002686004,6004,800-2667005,2004,200-6648005,8003,200-106

Consumer surplus is the difference between the amount the consumers are willing to pay and what they…

Answered: When Big Top maximizes profit, what is…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Can you help me to draw a graph too.

When Big Top maximizes profit, what is the consumer surplus and producer surplus and is the circus efficient? Explain why or why not.

Price	Quantity	Total Cost	Total Revenue	Marginal Revenue	Marginal Costs
20	0	1,000	0	0	0
18	100	1,600	1,800	18	6
16	200	2,200	3,200	14	6
14	300	2,800	4,200	10	6
12	400	3,400	4,800	6	6
10	500	4,000	5,000	2	6
8	600	4,600	4,800	-2	6
6	700	5,200	4,200	-6	6
4	800	5,800	3,200	-10	6

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If Big Top is regulated to charge a price equal to average total cost, what is the quantity of tickets sold, the price of a ticket, and economic profit?
If Big Top is regulated to produce the efficient output, what is the quantity of tickets sold, what is the price of a ticket, and what would be the consumer surplus?
Draw a graph to illustrate the circus market if regulators set a price cap that enables Big Top to break even. Show the deadweight loss in your graph.

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