04 Jun Question 1 Econ 100 Winter 2015
Question
1
Econ 100 Winter 2015
Problem set 6
Due March 6, 2015
1. The figure below shows supply and demand curves for the market for milk. What is the
deadweight loss if the government imposes a quota limiting the supply of milk to 500
Gallons?2
2. Suppose an industry has potential firms with identical technologies with TC = 200 + 2Q2
.
The demand curve in this industry is D(p) = 18 – ¼ p.
a. What is the AC minimizing quantity for a single firm?
b. If demand is 18 – 1/4p, how many firms could this market support if it were
perfectly competitive? Explain.3
3. (3 parts) Now assume that there is one monopoly firm in this market, and we will treat
its costs as sunk. So the costs are TC = 2Q2 and D(p) = 18 – ¼ p (meaning inverse
demand p = 72 – 4q).
a. What is the profit maximizing quantity for this monopolist to produce?
b. What is the price at this quantity?
c. What is the deadweight loss from production (remember: there are no fixed
costs)?4
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.