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- A firm faces the following linear inverse demand for its product P = 60 - 2Q. a)Find the firm's total revenue function TR (Q).b)Find the expression for the firm's marginal revenue.c)Assumingthat the marginal cost of production is given by MC=8. What will be the equilibrium output and pricePDF document.pdf The given by demand function Diberi fungsi permintaan P = 74-Q ² and the supply function is dan Fungsi Penawaran adalah P-(Q, +2)* Calculate the consumer's and producer's surplus under pure competition Kira lebihan per gguna dan lebihan pengeluar dibawah persaingan sempurnaA flour mill buys its wheat from two different farms, then processes the wheat into flour. Wheat from Farm X costs the mill $7 per bushel, and wheat from Farm Y costs the mill $15 per bushel. The selling price (in dollars per bushel) for the mill's wheat can be modeled by p(x, y) = 500 x y where x is the demand for the flour milled from Farm X's wheat and y is the demand for flour milled from Farm Y's wheat. Assume that x and y may be zero (so the mill only buys from one of the suppliers) and that the mill can by 1/2 of a bushel. Then the maximum profit is attained when x = y = bushels bushels The amount of the flour mill's maximum profit is $
- Under perfect competition, if the market demand function is Qdx = 120-20Px and the market supply function is Qsx = 20Px, what units are the total consumer surplus and producer surplus?In this problem, p is in dollars and x is the numbey of units. If the demand function for a product isp = 9/(x + 1) and the supply function is p = 1 + 0.2x, find the consumer's surplus under pure competition. (Round your answer to the nearest c 24Suppose that a local government is considering placing a tax on the rental of rooms on Airbnb. Before the tax, the total revenue earned by hosts using Airbnb was $10,000,000 per year. a) If the government imposes a 10% tax on these rooms, will they earn more or less than $1,000,000 in tax revenue if the market is assumed to be perfectly competitive? b) Will local residents who rent their homes (as tenants) benefit from this policy? (Use a diagram to explain) c) Does your answer to a) or b) change if there are a fixed (and small) number of rooms available to rent in the area?
- Consider product Y with industry supply given by p = 40 + q and industry demand given by p = 20 - 2q. What is consumer surplus?The market for paperback detective novels is perfectly competitive. Market Demand is given by Q=393-7P. Market Supply is given by Q=3P-9. Suppose 55 units are bought to the market. Consider the Marginal Cost of production for these 55 units. What is the maximum Marginal Cost of production of these 55 units? Enter a number only, do not include the $ sign. Hint: 55 doesn't have to be the market quantity.The average revenue function for a commodity is p = 50 – 4q. Find edp when: demand = 5 units ; price = Rs. 6. Find consumer’s surplus at price = Rs. 6
- Imagine you are the owner of the Omaha Surfboard Company. You have a branch in Omaha and in Long Beach CA. After some market research you find the following surfboard demand for each market, Omaha Demand: Qo = 1000 – 10P Long Beach Demand: QL = 1000 – 5P Combined/Total Demand: Q = 2000 – 15P Your marginal cost is constant at $40. a. Find your price and quantity if you treated the market as a single entity with a single price. What is your profit? (Hint: find Marginal Revenue and set equal to MC) b. If you treat each market separately, what is P and Quantity in each market, and final profit?demand equations QD = 3550 - 20P supply equations QS = 1800 + 30P Calculate initial consumer surplus for the above firm.If the demand function is P = 74 – Qå and the supply function is P = (Q, + 2)². Calculate the consumer's surplus and producer's surplus under the perfect competition.