1. Suppose the market supply and demand for milk can be expressed as:Q^S = 3PQ^D = 100 - 2P,If the government imposes a $5 unit tax to be collected from sellers, how much tax revenue is collected? What fraction is paid by sellers? (10%)

3. James has a monopoly on a board game called "Fly High" and faces a demand curve given by $ Q_T = 100 - P $, where $ Q_T $ equals the combined total number of games produced per hour in the company's two factories ($ Q_T = q_1 + q_2 $). If factory 1 has a marginal cost function given by $ MC_1 = q_1 - 5 $ and factory 2 has a marginal cost function given by $ MC_2 = 0.5q_2 - 5 $, how much total output will James choose to produce and how will he divide this output between its two factories in order to maximize profits? (10%)

1. Suppose the market supply and demand for milk can be expressed as:

$$Q^S = 3P$$

$$Q^D = 100 - 2P,$$

If the government imposes a $5 unit tax to be collected from sellers, how much tax revenue is collected? What fraction is paid by sellers? (10%)

相關申論題

相關試卷

1. Suppose the market supply and demand for milk can be expressed as:$$Q^S = 3P$$$$Q^D = 100 - 2P,$$If the government imposes a $5 unit tax to be collected from sellers, how much tax revenue is collected? What fraction is paid by sellers? (10%)

相關申論題

相關試卷

1. Suppose the market supply and demand for milk can be expressed as:

$$Q^S = 3P$$

$$Q^D = 100 - 2P,$$

If the government imposes a $5 unit tax to be collected from sellers, how much tax revenue is collected? What fraction is paid by sellers? (10%)