Q: You are an assistant to a senator who chairs an ad hoc committee on reforming taxes on…
A: Qd = 300 - 4P (Initial Demand Curve Equation) QS = 3P - 120 (Initial Supply Curve Equation)…
Q: I need help. If you can explain the process and not just give the solution, I would appreciate it,…
A: Marginal price (MC) is calculated by taking the amendment in total cost between 2 levels of output…
Q: The total revenue curve of a firm is R(q) = 40q – 12q² and its 400 average cost A(q) =9 – 12.85q +…
A:
Q: Blivets and p is measured in dollars. We Get Total revenue(measured in thousands of dollars)…
A: NOTE : Since there are multiple sub parts of the question, we shall solve the first three sub parts…
Q: Total revenue for producing 10 units of output is $5. Total revenue for producing 11 units of output…
A: Marginal revenue can be defined as the additional revenue with each unit change in quantity.…
Q: . An electricity producer has a constant marginal cost of production equal to $40 per…
A: Hi! thanks for the question but as per the guidelines we answer up to three sub-parts at one time.…
Q: A company has two wings producing two products - Product 1 and Product 2. P and P2 are price per…
A: Product 1: P1=155q2+26q22-q12q2 Product 2: P2=295q1+18q12-q22q1 Total Cost: C=100q1q2 Relative…
Q: Company XYZ projects their revenues for the given quarter to be modeled by the function R(z) = 12z -…
A: Breakeven is achieved at the output level where total revenue equals total cost.
Q: The price-demand and cost functions for the production of microwaves are given as p = 215 80 and…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: Suppose a municipal water utility must pay $360,000 per month for its quasi-fixed capital inputs,…
A: Long Run Average Cost refers to the cost per unit of output produced in the long run by a firm or…
Q: The table shows the marginal cost C'00, the marginal revenue R'(x) for producing x items. The third…
A: Marginal cost(MC) is the addition to cost in producing one more unit of output. Marginal revenue(MR)…
Q: In this Assignment, you will define and calculate the remaining six major cost elements of a…
A: “Hey, since there are multiple questions posted, we will answer the first question. If you want any…
Q: If the revenue function is equal to R(q) = 0.6q, the cost function is equal to c(q)= q/5 + ln(3q+1)…
A: Answer: Introduction: The cost and revenue function will grow at the same rate at the output level…
Q: You are an assistant to a senator who chairs an ad hoc committee on reforming taxes on…
A: The supply demand function for telecommunication services is given below.
Q: Question 1 A computer retailing company specializes in the sale of jump drives to community colle…
A: Given The demand function for jump drives is p=2x2+10x+1000 .........(1) The average…
Q: The price-demand equation and the cost function for the production of table saws are given,…
A: (Since there are many subparts in the question, we are going to answer the first three subparts…
Q: The figure shows graphs of the total cost function and the total revenue function for a commodity.…
A: The function that represents the total cost as being the sum of the variable costs and the fixed…
Q: Allocative efficiency is an economic concept regarding efficiency at the social or societal level.…
A: Here answer is “Has no motivation to operate at an output level where P=MC, once a barrier is in…
Q: In 2002 Boeing reduced employment by 33,000 workers due to reduced demand for aircraft. What does…
A: The marginal revenue product(MRP) is the extra revenue that the firm can earn by employing an…
Q: Which of the following is a typical example of a fixed cost of production in a business firm? A.…
A: Fixed Cost is one time cost which is incurred at the setting up of a business. The difference…
Q: Refer to the figure below to answer the questions. 1.) A corn producer's profit is RM200 and is…
A: The marginal revenue is the additional revenue earned from the sale of one more unit of good. Total…
Q: The total revenue curve of a firm is R(q) = 40q − 12q2 and its average cost A(q) =1/30q2 − 12.85q +…
A: R(q) = 40q − 12q2 A(q) = 1/30 q2 − 12.85q + 20 + 400/q Total cost = A(q) * q
Q: The manager of a company has determined that the cost function for the production can be described…
A: Revenue=Price×QuantityMarginal Cost=dCdQAverage Cost=CQ
Q: Suppose a firm has the following expenditures per day: $250 for wages and salaries, $50 for…
A: The total cost of production refers to the market value of inputs used by the firm in its production…
Q: Consider a firm with a total cost function TC = q^2 + 20q + 225. a) In a diagram, measuring quantity…
A: TC is the total cost of production of an economy. It is made up of variable cost. While MC is the…
Q: Habib Bank Limited estimates equation of demand of its product as: Q = 55 – 0.5P - (where P =…
A: Given: The demand equation for Habib Bank Limited is: Q = 55 – 0.5P The total cost of production is:…
Q: Average and marginal profit Let C(x) represent the cost ofproducing x items and p(x) be the sale…
A: Given C(x) = -0.02x2 + 50x + 100, p(x) = 100 - 0.1x, a = 500
Q: The city government is considering two tax proposals: • A lump-sum tax of $300 on each producer of…
A: By increasing the lump sum tax, the: Average total cost will increase. Average fixed cost will…
Q: There are 100 consumers on the market for product X. The individual demand function is the same and…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: For many, the principle “marginal revenue equal marginal cost" condition for profit maximization is…
A: Profit is maximized at the output where marginal revenue is equal to marginal cost. Marginal revenue…
Q: The cost function is c =q². Therefore, marginal cost equals 2q. Quantity refersto square metre of…
A: Here we have:- demand function=p=20-Q and cost function=TC=q2 Marginal cost=MC=2q since the firm is…
Q: Consider the following cost function: Total Cost = 50+5Q^3 and demand curve Price= 5000-275*Q Given…
A: The profit is maximum at MR=MC MR=5000-550Q ....... An MR curve is double sloped than an inverse…
Q: A company has two wings producing two products - Product 1 and Product 2. P and P2 are price per…
A:
Q: A producer faces a fixed cost of Rs. 50 and a variable cost Rs. 5 per unit of output when he…
A: A producer faces a fixed cost = Rs. 50 Variable cost = Rs. 5 per unit of output. Total cost= fixed…
Q: You cannot equate coffee roaster explicit costs with coffee farmers’ explicit benefits, despite…
A: a. Though the coffee roasters increase their explicit cost by sharing prices with farmers, but it is…
Q: You are an assistant to a senator who chairs an ad học committee on reforming taxes on…
A: Hey champ, Welcome to this platform. Here you will get the answer with better quality in minimum…
Q: If the Marginal Cost for a product is found to be MC= 8x+60 , and the Marginal Revenue is given as…
A: The marginal cost(MC) is the cost of manufacturing one more unit of output(o/p). Whereas the…
Q: In the following problem, c represents the average cost per unit, which is a function of the number…
A: Given: c=0.001q2-0.5q+50+7000/q q=15,q=25
Q: The price-demand equation for the production of bluetooth speakers is: p = 250 - 1/20x, for 0 is…
A: Profit function: π =TR -TC; where π is profit, TR is total revenue and TC is total cost Revenue…
Q: This question deals with cost curves and isoprofit curves. Keep in mind that the formula for a…
A: The isoprofit curve is a line joining various combinations of quantity (Q) and price (P) that would…
Q: The local government in Karachi is considering two tax proposals: A lump-sum tax of Rs. 300 on each…
A: A tax is imposed by the government on an economic activity such as production or consumption of a…
Q: Given Cost and Revenue functions C(q)=q^3-11q^2+55q+5000 and R(q)=−3q^2+2400q, what cost is incurred…
A: Hi there , as per our guidelines we are only allowed to solve up-to 3 sub parts of a question at a…
Q: A firm will break even (no profit and no loss) as long as revenue just equals cost. The value of x…
A: Given, Number of quantity of item produced or sold = x Cost function = C(x) Revenue function = R(x)…
Q: The FIA Formula 1 World Championship to be held during the 2021 Mexico City Grand Prix has a total…
A: To calculate the optimal number of tickets sold in the Red and Green Zone, we calculate the profit…
Q: Which of the following statements is correct with respect to profit maximization? PLEASE EXPLAIN…
A: In economics, an individual will enter into a transaction if he is able to generate profit from it.…
The local government in Karachi is considering two tax proposals:
- A lump-sum tax of Rs. 300 on each producer of Ice-cream.
- A tax of Rs. 1 per unit of Ice-cream, paid by producers of Ice-cream.
- Which cost
curves ; average fixed cost, the average variable cost,average total cost , and marginal cost would shift as a result of the lump-sum tax? Why?
2.Which cost curves; average fixed cost, the average variable cost, average total cost, and marginal cost would shift as a result of the per-unit tax? Why?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 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. Which of the following statements is true as a result of the lump-sum tax? Check all that apply. Average total cost will increase. Average fixed cost will increase. Marginal cost will increase. Average variable cost will remain unchanged. Which of the following statements is true as a result of the per-burger tax? Check all that apply. Average total cost will increase. Marginal cost will remain unchanged. Average fixed cost will increase. Average variable cost will increase.The city government is considering two tax proposals: • A lump-sum tax of $300 on each producer of hamburgers. • A tax of $1 per burger, paid by producers of hamburgers. Which of the following statements is true as a result of the lump-sum tax? Check all that apply. Average fixed cost will decrease. Average variable cost will increase. Average total cost will increase. Marginal cost will remain unchanged. Which of the following statements is true as a result of the per-burger tax? Check all that apply. Average total cost will remain unchanged. Average fixed cost will decrease. Marginal cost will increase. Average variable cost will increase.2.4 Water is produced and sold by the government. Demand for water is represented by the linear function Q=50-2P. The total cost function for water production is also a linear function: TC(Q)= 100+ 100. You will also need to work out both the average cost of production, denoted by AC(Q), equal to the total cost of producing a quantity of output divided by that quantity of output, TC(Q)/Q, and the marginal cost of production, denoted by MC(Q), which is the additional cost incurred to produce one more unit. a. What fee should the government charge per unit of water in order to reach the efficient allocation? b. How much should it charge if it wishes to maximize profit from the sale of water? C. What is the value of the efficiency loss that results from charging the price in part b rather than the price determined in part a?
- Glen Eira City Council wants to impose a tax to fish and chips shops. It is considering two types of tax:- a lump sum of 500$ on each fish and chips owner- a tax of 2$ per kg of fish and chips sold, paid by each fish and chips owner(a) Which cost curve would shift as a consequence of each type of tax? (AFC, AVC, (b) Consider the following table of long-run total cost for three different fish andATC, MC)?Consider a firm with a total cost function TC = q^2 + 20q + 225. a) In a diagram, measuring quantity along the horizontal axis, draw the firm’s Marginal Cost and Average Cost curves. Suppose that the government introduces a $10 per unit seller tax. b) What is the firm’s new total cost function? In the same diagram as above, illustrate how the tax affects the firm’s MC and AC curves. Does the tax affect the firm’s MC? Does it affect the firm’s minimum efficient scale? Suppose instead that the government introduces a new licensing fee that raises the firm’s recurring fixed cost to 400. C) In a new diagram draw the firm’s MC and AC before and after the introduction of the licensing fee. Does the fee affects’ the firm’s MC? Does it affect the firm’s minimum efficient scale?With the tax at $10 per unit of output, at what output is the value for the new AC at it’s minimum? With the level of fixed cost at 50,000 at what output is the value for the new AC at its minimum?
- Does the minimum efficient scale necessarily have to be where the marginal cost is minimal? Can taxes be Pareto improving? How?You cannot equate coffee roaster explicit costs with coffee farmers’ explicit benefits, despite coffee roasters paying the farmers for their beans. What are some of the factors that account for this discrepancy? Why does the roaster care about the profitability of the coffee farmer? Why would they offset their reduced production costs by increasing the amount they pay to farmers?(29. At 100 output, marginal revenue is less than marginal cost) True False 30. In relation to question number 29, producer should produce more up to 440. True False
- If the revenue function is equal to R(q) = 0.6q, the cost function is equal to c(q)= q/5 + ln(3q+1) + 1, the marginal cost function is Cm(q) = 3q+16/15q+5, at what levels of production are the cost and revnue functions growing at the same rate?Indicate how each of the following would shift the (1) marginal- cost curve, (2) average-variable-cost curve, (3) average- fixed-cost curve, and (4) average-total-cost curve of a manufacturing firm. In each case, specify the direction of the shift. A reduction in business property taxes.Suppose a tax is set at t’ in the figure. How many units of emissions are ABATED and is abatement achieved cost effectively? Suppose a regulation has just been implemented requiring that coal-fired power plants pay a tax of $80 on each unit of emissions (1 unit is 1 metric ton). Before the tax was imposed, a plant called Old River Power had an emissions level of 100 units. Given a marginal abatement cost function of 200 – 2E, under the tax policy what will Old River Power pay the regulator in emissions taxes?
