Consider the following Table: Q TC 100 140 90 150 80 160 3 70 170 60 180 5 50 190 6. 40 200 30 210 8 20 220 9 10 230 10 240 which contains the demand schedule for a service and the long-run total cost TC of providing it (the cost of producing the quantity zero is a quasi-fixed cost). a. In order to answer the following questions, you may need to calculate variables like ATC, MC, R, etc. Copy and paste the preceding table in the Answers section below, including calculations of the values of all the variables that you will find relevant. b. What quantity will be socially efficient to produce in this industry? How many firms should be in the industry in order to have the efficient quantity produced? Why? What will be th industry's profit if the efficient quantity is to be sold? (Hint: ATC may help to explain this). c. What quantity would you expect that it will be produced in this industry and at what price will be sold if the government does not intervene in order to modify the market outcme? outcome be efficient? What will be the total industry's profit and the deadweight loss, if any?

Consider the following Table: Q TC 100 140 90 150 80 160 3 70 170 60 180 5 50 190 6. 40 200 30 210 8 20 220 9 10 230 10 240 which contains the demand schedule for a service and the long-run total cost TC of providing it (the cost of producing the quantity zero is a quasi-fixed cost). a. In order to answer the following questions, you may need to calculate variables like ATC, MC, R, etc. Copy and paste the preceding table in the Answers section below, including calculations of the values of all the variables that you will find relevant. b. What quantity will be socially efficient to produce in this industry? How many firms should be in the industry in order to have the efficient quantity produced? Why? What will be th industry's profit if the efficient quantity is to be sold? (Hint: ATC may help to explain this). c. What quantity would you expect that it will be produced in this industry and at what price will be sold if the government does not intervene in order to modify the market outcme? outcome be efficient? What will be the total industry's profit and the deadweight loss, if any?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter22: Supply: The Costs Of Doing Business

Section: Chapter Questions

Problem 14E

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