is the sole supplier of solar panels in SuI supply solar panels at a constant marginal cost MC of $10 per panel. There are two different categories of customers of solar energy, business and residential. • The businesses' demand for solar panels is QB(P) = 240 – 3P. • The residential demand for solar panels is QR(P) = 80 – 5P. olaris has no fixed costs and can a) Tax per unit (TU): The government decides to tax Solaris at $2 per panel sold. Find the new optimal price Py and quantity Q#u that Solaris chooses, and compute its profit ny. Finally, compute the tax revenue TRTU. (10 points)

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter14: Pricing Techniques And Analysis
Section: Chapter Questions
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Solaris is the sole supplier of solar panels in Sunuylandia. Solaris has no fixed costs and can
supply solar panels at a constant marginal cost MC of $10 per panel.
There are two different categories of customers of solar energy, business and residential.
• The businesses' demand for solar panels is QB(P) = 240 – 3P.
• The residential demand for solar panels is QR(P) = 80 – 5P.
a) Tax per unit (TU): The government decides to tax Solaris at $2 per panel sold. Find
the new optimal price Py and quantity Qu that Solaris chooses, and compute its
profit ny. Finally, compute the tax revenue TRTU.
(10 points)
Transcribed Image Text:Solaris is the sole supplier of solar panels in Sunuylandia. Solaris has no fixed costs and can supply solar panels at a constant marginal cost MC of $10 per panel. There are two different categories of customers of solar energy, business and residential. • The businesses' demand for solar panels is QB(P) = 240 – 3P. • The residential demand for solar panels is QR(P) = 80 – 5P. a) Tax per unit (TU): The government decides to tax Solaris at $2 per panel sold. Find the new optimal price Py and quantity Qu that Solaris chooses, and compute its profit ny. Finally, compute the tax revenue TRTU. (10 points)
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