SOLVE 9 and 10. A perfectly competitive industry has a large number of potential entrants. Short-Run totalcost is STC-0.1q²+40 and all firms have identical cost structure. They all minimize cost atthe same point where Min AC-MC and are at their long run equilibrium.1-Find the quantity and the cost of every firm at that point.If total market demand is P = 12-6002.2-Find the total quantity demanded in the market and the corresponding number of firms.3-Derive the market supply curve and calculate the total Welfare (CS+PS) in this market.Due to an increase in Income consider that demand shifted to P = 15-6000.4-What will be the new market equilibrium price and quantity? What will be the output/firmin the short-run?Since entry and exit is possible in the long-run cost.5-What should the new number of firms become to satisfy this quantity and derive the newmarket supply?Go back to the original case where P = 12-600 and if the government imposes a $2/unittax on this market.7-What should be the new equilibrium price and quantity? Who pays more of the tax thesuppliers or the consumers?8-Calculate the new social welfare, the government revenue and the DWL.Instead of the tax the government decides to open the market for international competitionwhere the price is $2 and impose a $1/unit tariff.9-Calculate the increase in the original welfare and then the reduction in welfare due to thetariff.10-Calculate the government revenue and the DWL from the tariff.

9. Find the domestic supply curve from the first part and plot a well-labelled diagram to find the…

Instead of the tax the government decides to open the market for international competition where the price is $2 and impose a $1/unit tariff. 9-Calculate the increase in the original welfare and then the reduction in welfare due to the tariff. 10-Calculate the government revenue and the DWL from the tariff.

Instead of the tax the government decides to open the market for international competition where the price is $2 and impose a $1/unit tariff. 9-Calculate the increase in the original welfare and then the reduction in welfare due to the tariff. 10-Calculate the government revenue and the DWL from the tariff.

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

Q: What is the value of Y if C = 200, a = 20, and b = 0.9?

A: Consumption is known as the expenditure incurred by the individuals on the purchase of goods and…

Q: The company that you manage has invested $5 million in developing a new product, but the development…

A: If it would cost $1 million to finish development and make the product, you should go ahead and do…

Q: Instructions: Round your responses to one decimal place. If you are entering any negative numbers be…

A: The labor force participation fee affords insights into the level of economic pastime and the…

Q: Refer to the table below: Year 1950 1960 1970 1980 1990 2000 2010 2020 Participation Rates (Age 16…

A: The formula for calculating percentage change in an economic variable X between two periods:…

Q: Could you show the work for getting X = 6 and Y = (9-X)/2

A: The profits will be maximized when the derivative of the profit function with regard to an input…

Q: Consider Figure 4 below showing the average cost (AC), average variable cost (AVC), and marginal…

A: Given information Perfect competitive firm Condition for equilibrium P=MC When Price is P1 P1=MC and…

Q: Use properties of logarithms to expand the logarithmic expression as much as possible. Where…

A: The log function can be solved by applying the logarithm functions formula. Expanding the log…

Q: Thank you for helping me understand but for the step 2 calculations, is the final answer 4.768 or…

A: The issue you raised has to do with the ideas surrounding the time value of money. Here, you are…

Q: why is 1 the numerator over x + 2000 when you set it as u

A: The term "u" represents the variable x after it has been shifted by 2000 units to the right. This…

Q: Prepare the scatter diagram, clearly showing any outliers.

A: Introduction: Production costs include all direct and indirect costs incurred by a company when…

Q: Find f'(x). 4 f(x) = 2x° (x* - 2) f'(x) = D %3D

A: Given: fx=2x5x4-2

Q: Using Kendall's notation, wh- Draw the rate diagram or the

A: Answer 1) Average rate of arrival = no. of shoppers incoming per hour =lembda= five customers per…

Q: My calculation of (600-0.4(100))/0.7 = 800. How do you get 828.57

A: Given that, Demand function of dental service: P = 600-0.7Q where, P is price of dental service…

Q: New ads have been proposed and cost the company $5000 to run in each time slot. If the extra sales…

A: To determine how many ads should be run, we need to find the number of ads that will maximize the…

Q: n one sentence, what does it mean for an estimator to be consistent? (Hint: you do not need to…

A: What does it mean for an estimator to be consistent.

Q: u (x1, x2) = x1x2 What is the value of MRS(4, 20)? (Don't forget to include a minus sign in your…

A: Given Utility function:u(x1,x2)=x1x2 .... (1) We have to calculate the marginal rate of…

Q: Compute the MUx, MUy, AUx and AUy. Compute the MUx, MUy, AUx and AUy. Given:…

A: MUx= TUn-TUn-1MUy=TUn-TUn-1AUx= TUxQAUy=TUyQ

Q: Aroha has to choose among three possible activities to do on Sunday morning. She ranks her…

A: The opportunity cost of doing any activity is the sacrificed value of the next best alternative.…

Q: I need answer typing clear urjent no chatgpt used i will give upvotes both answers

A: given : θ=−0.101sin(4.95t)+0.3cos(4.95t) (a) : when θ=0°, from the given equation…

Q: What is the difference between an unbiased estimator and a consistentestimator?

A: An estimator is said to be unbiased when the value of the estimator in sampling distribution is same…

Q: For the straight line defined by the points (4,53) and (6,91), determine the slope (m) and…

A: Slope of a straight line is calculated as a ratio of change in y and change in x. It is the…

Q: (Exercise 1.8) If A(3) =$3000 and in = 0.01n, find A(5).

A: Calculate the amount in the account after 3 years. We do this by multiplying the initial amount,…

Q: Jack and Diane work at a bakery. Jack can make either five batches of cookies or two cakes per hour,…

A: Here we will use the concept of absolute advantage. The worker who have advantage in producing cakes…

Q: Yvette is a hard working fourth-year university student. One Tuesday, she decides to work nonstop…

A: The choices made at the margin are an economic concept. It means that decisions are made by…

Q: The initial population of a town is 5 000, and it grows with a doubling time of 8 years. What will…

A: We can use the following formula to calculate the population after a certain number of years: P* = P…

Q: I need the answer to four, but it requires number 3.

A: 3. The MPC shows the change in consumption if disposable income changes. Marginal propensity to…

Q: 0.1×1502+0.2×1002+0.3×502' mean is '0.1×1502+0.2×1002+0.3×502 = 2250 + 2000 + 750' or…

A: Abatement costs are the costs connected with removing negative byproducts created during…

Q: Suppose we are again given 20 tulip bulbs that are very similar in appearance. Information on this…

A: Probability characterizes the likelihood of the event of an occasion. There are some real…

Q: Suppose you are shopping online for a new toy for your dog. As you look at the product reviews, you…

A: The objective of this question is to calculate the standard deviation of the number of stars given…

Question

SOLVE 9 and 10.

A perfectly competitive industry has a large number of potential entrants. Short-Run total
cost is STC-0.1q²+40 and all firms have identical cost structure. They all minimize cost at
the same point where Min AC-MC and are at their long run equilibrium.
1-Find the quantity and the cost of every firm at that point.
If total market demand is P = 12-6002.
2-Find the total quantity demanded in the market and the corresponding number of firms.
3-Derive the market supply curve and calculate the total Welfare (CS+PS) in this market.
Due to an increase in Income consider that demand shifted to P = 15-6000.
4-What will be the new market equilibrium price and quantity? What will be the output/firm
in the short-run?
Since entry and exit is possible in the long-run cost.
5-What should the new number of firms become to satisfy this quantity and derive the new
market supply?
Go back to the original case where P = 12-600 and if the government imposes a $2/unit
tax on this market.
7-What should be the new equilibrium price and quantity? Who pays more of the tax the
suppliers or the consumers?
8-Calculate the new social welfare, the government revenue and the DWL.
Instead of the tax the government decides to open the market for international competition
where the price is $2 and impose a $1/unit tariff.
9-Calculate the increase in the original welfare and then the reduction in welfare due to the
tariff.
10-Calculate the government revenue and the DWL from the tariff.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step 5

Step 6

Step 7

Step by step

Solved in 7 steps

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

Kobmison Crusoe spends 4 hours a day catching fish and picking coconuts. He can always cateh 2 umioer of coconuts he eats per day and Fis the number of ish he eats per day, How many fish will he choose to eat per day? F= 2LF or -2/.
None
How do you solve a problem similar to this? I’m confused on how to solve to find the quantity when you have the other variables. (Q1-15)-Q1/ ((Q1-15)+Q1)/2 = -30.30
f (x, y) = 3x² + y³ + 4xy² +8 Of(x,y) dr Of(x,y) dy What is the value of when x = 4 and y = 5? (Note: the answer may not be a whole number, so please round to the nearest hundredth) (Note: the numbers may change between questions, so read carefully)
I need typing clear urjent no chatgpt use i will give 5 upvotes full explanattion
243 1 2 1 10 5 6 find the cofactors of the matrix
The table provides data on the price of an umbrella, the amount of rainfall, and the number of umbrellas bought per day. Price (dollars per umbrella) 20 30 40 2 inches 30 20 15 2) 3 inches. Label the point 2. 3) 4 inches. Label the point 3. Umbrellas (number per day) 3 inches 40 30 25 4 inches 60 45 30 Draw points to show the price when the quantity is 30 umbrellas and the rainfall is 1) 2 inches. Label the point 1. Draw a curve through these points to illustrate the relationship between rainfall and price when the quantity is constant at 30 umbrellas. 40- 30 20- 10- 0 Price (dollars per umbrella) Rainfall (inches per day) >>> Draw only the objects specified in the question.
No written by hand solution
Q. 4
use the data to compute the probability that an adult in the tri state region smokes kentucky 47 176 indiana 32 134 ohio 39 182 total 118 492
Question 4 Calculate the expected value of rolling a fair 13-sided dice. Add your answer 12 ZIE 10 11 16. 8 10 8 8 12 X
If Cov(X,Y) = 639, then what is Cov(19X,10Y)? Suppose Cov(X,Y) = 43. What is Cov(0.23X, 0.33Y)? Suppose Cov(X,Y) = 872. What is Cov(0.99X, 0.86Y)?