Ask Question, Ask an Expert


Ask Microeconomics Expert

1. Sam Smith owns the internet radio company which has subscribers in Houston and Dallas. Demand functions for the 2 markets are:

Q(Houston) = 50-0.35P(Dallas)

Q(Dallas) = 80-0.40P(Houston) Quantities are in thousands of subscriptions per year.

The cost of providing internet radio service is TC = 800+50Qt

a. What price must Sam charge and how many subscribers would he have if he treats Houston and Dallas as one market?

b. What is the total quantity of subscribers for one market?

c. What is the quantity in the Houston market?

d. What is the quantity in the Dallas market?

e. What prices must Sam charge and what are the associated quantities if he wishes to maximize profits?

2. Coal produces a large amount of pollution in Kentucky. As a consultant to the governor your job is to find out the best public policy in regards to this monopoly.

Demand curve for coal is:

P= 600-12Q (qty in thousands of units)

Long run cost of producing coal exhibits constant returns to scale so LAC=LMC=$125. Additionally the production of one unit of coal generates one unit of pollution where marginal external cost (MEC) is estimated to be $90 per additional unit of pollution.

a. What is the equilibrium price and quantity if there is no government intervention?

b. What is the equilibrium price and quanity if the industry operates as a perfectly competitive industry?

c. What is the equilibrium price and quantity if a tax equal to the MEC of pollution is charged (with the industry operating as a monopoly)?

d. What is the equilibrium price and quantity if regulation is imposed to have the industry operate as a perfectly competitive industry and a tax equal to the MEC is charged?

3. The market for corn in Brazil has a demand and supply of the following:


QS= -14+3P (quantities in thousands of bushels per day)

a. If the domestic market is perfectly competitive, determine the equilibrium price and quantity of corn.

b. find out consumer surplus and producer surplus

c. Imagine if there are no trade barriers and world price of corn is $4, confirm that the country would import corn

i. Show QD, Q and level of imports

ii. Is Brazil better off with free trade? As compared to the consumer surplus and producer surplus

d. Brazil government believes in free trade but feels political pressure to help its own corn growers. So, Brazil government decides to provide $2 per bushel subsidy to their growers.

i. Is Brazil better off with subsidy as compared to situation in part C?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91473

Have any Question? 

Related Questions in Microeconomics

Discussion questionon the surface hinduism appears

Discussion Question On the surface, Hinduism appears radically different from Abrahamic religions like Islam and Judaism. However, Hindu teachings state that there is a single divine essence in the universe. Consider too ...

Assignmentafter reading chapters 1-3 of shanes finding

Assignment After reading chapters 1-3 of Shane's Finding Fertile Ground, refer back to Table 1.1: Percent of New Firms in Selected Industries That Have Become Inc 500 Firms(p. 3). Identify two specific companies by name: ...

Why do we not classfied money as factors of

Why do we not classfied money as factors of production

Economic principles written assignment- there are two parts

Economic Principles Written Assignment- There are two parts, A and B, to this assignment. You need to answer both. Part A: Disruptive Technologies A major focus of economics is the analysis of markets and the impact of r ...

To begin you initial post research one of the health

To begin you initial post, research one of the health profession licensing agencies in your state. Analyze and comment on the role this professional licensing group plays in the creation of policy within the profession a ...

Topic 1 perfectly competitive market structurea perfectly

Topic 1: Perfectly Competitive Market Structure A perfectly competitive market structure has key features. 1. There are many buyers and sellers so neither side of the market has market power. 2. The product provided to t ...

Applications and best practicesi always like to hear the

Applications and Best Practices I always like to hear the feedback from students about what are some of the challenges they face in the economic concepts. This makes the class advance in the future. From your perspective ...

Assignmentafter read two articles then answer the questions

Assignment After read two articles then answer the questions below Cellini: - How does Cellini criticize Bandinelli's sculpture Hercules and Cacus (1534)? - What technical difficulties does Cellini encounter in making hi ...

Assignment external financinggenesis energys newly

Assignment: External Financing Genesis Energy's newly established operations management team decided to seek outside assistance in developing a long-term operating plan that also addresses the financial issues identified ...

Short-run economic fluctuationscreate a 3 -slide microsoft

Short-Run Economic Fluctuations Create a 3 -slide Microsoft PowerPoint presentation that will be presented to the organization's Executive Committee. The presentation should cover the following items: • Identify the thre ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate