This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Suppose the inverse supply curve in a market is Q = 6p2. If price decreases from 5 to 4, the change ... (Read 76 times)

TFauchery

  • Hero Member
  • *****
  • Posts: 500
on: Jul 1, 2018
Suppose the inverse supply curve in a market is Q = 6p2. If price decreases from 5 to 4, the change in producer surplus is
 
  A) 150.
  B) -54.
  C) -6.
  D) -122.

Question 2

Explain why a monopoly that knows the demand curve of identical consumers can set a two-part price with the lump sum tariff equal to the total amount of potential consumer surplus.
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

mk6555

  • Sr. Member
  • ****
  • Posts: 310
Reply #1 on: Jul 1, 2018
Answer to Question 1

D

Answer to Question 2

The producer wants to set the lump sum price equal to the competitive level of consumer surplus. This maximizes the producer surplus. The consumer surplus measures the difference between the consumer's value of the good and the price paid for each unit. Thus, the consumers are willing to pay up to the total amount of consumer surplus.


TFauchery

  • Hero Member
  • *****
  • Posts: 500
Reply #2 on: Jul 1, 2018
Thank you :)


mk6555

  • Sr. Member
  • ****
  • Posts: 310
Reply #3 on: Jul 1, 2018
Happy to help you


« previous next »
 

Did you know?

A serious new warning has been established for pregnant women against taking ACE inhibitors during pregnancy. In the study, the risk of major birth defects in children whose mothers took ACE inhibitors during the first trimester was nearly three times higher than in children whose mothers didn't take ACE inhibitors. Physicians can prescribe alternative medications for pregnant women who have symptoms of high blood pressure.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

Did you know?

In 1844, Charles Goodyear obtained the first patent for a rubber condom.

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Did you know?

Anti-aging claims should not ever be believed. There is no supplement, medication, or any other substance that has been proven to slow or stop the aging process.

The titration curve of acetic acid The titration curve of acetic acid
Zonal wind speeds on Uranus. Shaded areas show the southern collar and its future northern counterpa Zonal wind speeds on Uranus. Shaded areas show the southern collar and its future northern counterpa
Blood PH Curve Hemoglobin Blood PH Curve Hemoglobin
A Dose-Response Curve A Dose-Response Curve
Stock Market Tracks Growth in GDP Stock Market Tracks Growth in GDP
Consider the production function ( ) 0.5 0.5 Y = AK L . Suppose both saving rate (s) and the ... Consider the production function ( ) 0.5 0.5 Y = AK L . Suppose both saving rate (s) and the ...
Video: Spinal Cord Injury Animation

For a complete list of videos, visit our video library