Assume that there is a monopolist operating in autarky with a demand curve ? =100−2?. This monopolist has a marginal cost of ? =20. There are no fixed costs. 1) At what price and quantity will the monopolist sell in autarky? What are the monopolist profits? 2) The (small) country opens up for trade, and the world price is $30. How much does the monopolist produce? What are the profits? How much is imported? 3) The country then imposes a tariff of $5 per unit. What is the price in the country? In the world? How much is produced? How much is imported? Calculate government revenue. 4) The country repeals the tariff and imposes an import quota of 10 units. What is the price in the country? How much does the monopolist produce? What are the monopolist profits? How much is consumed? If the government auctions off import licenses, how much money does the government raise? Please pay attention to the details I gave and answer only with this details. Please don't copy and paste answers from Google!
Assume that there is a monopolist operating in autarky with a demand curve ? =100−2?. This monopolist has a marginal cost of ? =20. There are no fixed costs.
1) At what
2) The (small) country opens up for trade, and the world price is $30. How much does the monopolist produce? What are the profits? How much is imported?
3) The country then imposes a tariff of $5 per unit. What is the price in the country? In the world? How much is produced? How much is imported?
Calculate government revenue.
4) The country repeals the tariff and imposes an import quota of 10 units. What is the price in the country? How much does the monopolist produce? What are
the monopolist profits? How much is consumed? If the government auctions off import licenses, how much money does the government raise?
Please pay attention to the details I gave and answer only with this details.
Please don't copy and paste answers from Google!
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