If the inverse demand curve is p= 180 - Q and the marginal cost is constant at $20, how does charging the monopoly a specific tax of t= 56 per unit affect the monopoly optimum and the welfare of consumers, the monopoly, and society (where society's welfare includes the tax revenue)? What is the incidence of the tax on consumers? byunits and the profit-maximizing price by S (Enter numeric responses using As a result of the tax, the profit-maximizing quantity real numbers rounded to two decimal places.) Consumer surplus by The monopoly's surplus (producer surplus) by S[ Finally, society's welfare by S The consumer incidence of the tax is %.
If the inverse demand curve is p= 180 - Q and the marginal cost is constant at $20, how does charging the monopoly a specific tax of t= 56 per unit affect the monopoly optimum and the welfare of consumers, the monopoly, and society (where society's welfare includes the tax revenue)? What is the incidence of the tax on consumers? byunits and the profit-maximizing price by S (Enter numeric responses using As a result of the tax, the profit-maximizing quantity real numbers rounded to two decimal places.) Consumer surplus by The monopoly's surplus (producer surplus) by S[ Finally, society's welfare by S The consumer incidence of the tax is %.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
![Should a firm shut down if its weekly revenue is $850, its variable cost is $300, and its fixed cost is $900, of which S600 is avoidable if it shuts down? Why?
The firm should
to save S (Enter a numeric response using an integer.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fee95dda3-1bbf-4a94-a227-711f7d10ba68%2F2beb20ea-3d3b-4d4e-a243-fb01ce64cd2b%2F16b48r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Should a firm shut down if its weekly revenue is $850, its variable cost is $300, and its fixed cost is $900, of which S600 is avoidable if it shuts down? Why?
The firm should
to save S (Enter a numeric response using an integer.)
![If the inverse demand curve is
p= 180 - 0
and the marginal cost is constant at $20, how does charging the monopoly a specific tax of t= 56 per unit affect the monopoly optimum and the welfare of
consumers, the monopoly, and society (where society's welfare includes the tax revenue)? What is the incidence of the tax on consumers?
As a result of the tax, the profit-maximizing quantity
by
units and the profit-maximizing price
by S. (Enter numeric responses using
real numbers rounded to two decimal places.)
Consumer surplus
by $
The monopoly's surplus (producer surplus)
V by S
Finally, society's welfare
by S
The consumer incidence of the tax is %.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fee95dda3-1bbf-4a94-a227-711f7d10ba68%2F2beb20ea-3d3b-4d4e-a243-fb01ce64cd2b%2Fyb43u2_processed.jpeg&w=3840&q=75)
Transcribed Image Text:If the inverse demand curve is
p= 180 - 0
and the marginal cost is constant at $20, how does charging the monopoly a specific tax of t= 56 per unit affect the monopoly optimum and the welfare of
consumers, the monopoly, and society (where society's welfare includes the tax revenue)? What is the incidence of the tax on consumers?
As a result of the tax, the profit-maximizing quantity
by
units and the profit-maximizing price
by S. (Enter numeric responses using
real numbers rounded to two decimal places.)
Consumer surplus
by $
The monopoly's surplus (producer surplus)
V by S
Finally, society's welfare
by S
The consumer incidence of the tax is %.
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