If the pre-tax cost function for John's Shoe Repair is C(q) = 100 + 10q - q2 + (1⁄3q)2, and it faces a specific tax of = 10, what condition determines the profit-maximizing output if the market price is p? Can you solve for a single, profit-maximizing q in terms of p?
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If the pre-tax cost function for John's Shoe Repair is C(q) = 100 + 10q - q2 + (1⁄3q)2, and it faces a specific tax of = 10, what condition determines the profit-maximizing output if the market
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- If the pre-tax cost function for John's Shoe Repair is C(q)=100+10q-q^2+1/3q^3, and it faces a specific tax of t=10, what is the profit-maximizing condition if the market price is p? Can you solve for a single, profit maximizing q in terms of p?In this problem, p is the price per unit in dollars and q is the number of units.If the demand and supply functions of a product are p = 6500 − 5q − 0.7q2 and p = 500 + 10q + 0.3q2, respectively, find the tax per unit t that will maximize the tax revenue T. t = $ /itemThe demand and supply functions for product x are given, respectively, by the equations: P = 83.6 - 0.037 Q P = 15.7 + 0.056 Q. A P10 tax per units is levied to the manufacturer. What is the price paid by the buyer before the imposition of tax?
- About 35,000 general aviation multiengine airplanes are licensed to operate in the United States. If an additional $1,000-per-year tax was levied on each plane to raise general revenue, economic thinking suggests the A) annual revenue from this tax would be less than $35,000,000.B) number of airplanes would increase dramatically.C) annual revenue from this tax would be more than $35,000,000.D) annual revenue from this tax would be $35,000,000.The short-run market demand and supply curves for good X are as follows: QD = 20 - 4P QS = 7 + 2.5P Find the equilibrium price and quantity before the imposition of the tax. What is the price actually paid by the demanders (Pd) due to a quantity or specific tax of $1 per unit collected from the buyers? What is the price actually received by the suppliers (Ps) due to a quantity or specific tax of $1 per unit collected from the buyers? What is the after- or post-tax quantity? What is the total revenue after the imposition of the quantity or specific tax? How much of the tax do consumers pay (in percent)? How much of the tax do producers pay (in percent)?The demand and supply functions for product M are P = 83.6 - 0.037 Q P = 15.7 + 0.056 Q. A P10 tax per units is levied to the producer. Question: What is the P received by the seller after the imposition of tax? and how much will be the tax burden on the part of the producer after the imposition of tax? How much will be the tax burden in the part of buyer on the other hand?
- Lump-Sum Tax The city government is considering two tax proposals: • A lump-sum tax of $300 on each producer of hamburgers. • A tax of $1 per burger, paid by producers of hamburgers. please helpA rice producing company faces the following demand function: Pd = 300 – 0.10Q. The firm’s accountant believes that the supply function of the company is given as: Ps = 100 + 0.10Q where P denotes price of a kilogram of rice GH¢ and Qd and Qs are the quantities demanded and supplied respectively. Based on this information: If the government now decides to impose a per unit tax of GH¢ 15 per unit on the quantity supplied and the company adjusts the supply function appropriately to include tax: Determine the new equilibrium price and quantity in the market for the company. Who pays a larger portion of the tax revenue? What is the total tax revenue to government? Calculate the deadweight loss to society. What type of elasticity of demand exists in the market? What type of elasticity of supply exists in the market after the tax imposition? Present graphically the results of the above questions. Given the type of price elasticity of demand in the market, what should the producer do to…Given a demand curve of P = 136 - 4Qd and supply of P = 42 + 8Qs, find the total cost to society of a lump sum tax of 12 dollars, assuming the government is as efficient in resource use as households.
- There are a variety of taxes that a person pays when buying an airline ticket. One tax is called the LUST fuel tax. LUST stands for leaking underground storage tank. The LUST tax is to establish a trust fund to provide money for oversight and corrective action against owners of leaking underground storage tanks and provides money for cleanup of LUST sites where the owner or operator is unknown. Is it efficient for customer’s of airlines to beforced to pay the tax?The market for N-95 masks is perfectly competitive. Market Demand is given by Q=464-2P and Market Supply is given by Q=5P. The government imposes a per-unit tax of $2. How much tax revenue does the government collect? Enter a number only, drop the $ sign. Note: you don't need to know who pays the tax to answer this question.The estimated demand function for avocados is Q = 160 – 40p, where p is price of avocados. The estimated supply function for avocados is Q = 50 + 15p. Using algebra, determine how price and quantity change when a €0.55 per lb specific tax is imposed on this market.
