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PRINCIPLES OF ECONOMICS ECON F211
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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