A

monopolist faces demand function P=100-Q.

The

Total Cost of production of the firm is 500+28Q+Q

Suppose the

government enforces a ceiling price P*. It is found that the deadweight loss

under regulated equilibrium is same as the deadweight loss under unregulated

equilibrium. Based on this information, calculate P*

Total Cost function of a representative firm in a perfectly competitive market is

If market price is =41 then calculate the output of this firm

Suppose the production function of a firm is where symbols have their usual significance as discussed in class. Per unit price of L is 15 and per unit price of K is 1920. 

The firm wants to produce 2 units of output. Calculate the Total Cost in long run.

A

monopolist faces demand function P = 100-Q

The

Total Cost of production of the firm is 500+28Q+Q

Suppose the government regulates the

monopolist by imposing a ceiling price = 25.

Calculate

the Deadweight Loss under the regulated regime

A

monopolist faces demand function P=100-Q.

The

Total Cost of production of the firm is 500+28Q+Q

Suppose the government regulates the

monopolist by imposing a ceiling price = 80.

Calculate

the Producer Surplus of the firm.

A

monopolist faces demand function P = 100-Q

The

Total Cost of production of the firm is 500+28Q+Q

Suppose the government regulates the

monopolist by imposing a ceiling price = 25.

Calculate Total Revenue – Total Cost of the firm

under the regulated regime