Microeconomics
Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
Question
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Chapter 14, Problem 21QE

a)

To determine

The quantity of output chosen by the firm.

b)

To determine

The average fixed cost of the monopolistic competitor.

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Consider the following demand and supply functions:Qd= 10-PQs=1+2pFind the equilibrium price and quantity, Producers and Consumer surpluses.Consider the tax size 3. What would be new CS and PS, TS and DL? (hint – it would be easierif you draw them)
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