Micro Econ
1. The state of California recently considered passing a tax on the services of doctors in that state in order to raise revenue to pay for universal health coverage for California residents. Suppose the average open heart surgery costs $100,000, and at that price 23,339 surgeries are performed each year. Fully explain what the most likely outcome would be in this market if a tax on surgeries is implemented. Use a graph if it will help.
2. Price Changes and
Responses by Consumers | Price | Quantity Demanded | Quantity Supplied | $4.89 | 311 | 255 | $4.29 | 388 | 214 | $5.39 | 198 | 309 | $5.19 | 268 | 300 | $5.00 | 279 | 279 |
Price Changes and
Responses by Consumers | Price | Quantity Demanded | Quantity Supplied | $4.89 | 311 | 255 | $4.29 | 388 | 214 | $5.39 | 198 | 309 | $5.19 | 268 | 300 | $5.00 | | |
Price Changes and
Responses by Consumers | Price | Quantity Demanded | Quantity Supplied | $4.89 | 311 | 255 | $4.29 | 388 | 214 | $5.39 | 198 | 309 | $5.19 | 268 | 300 | $5.00 | 279 | 279 |
1. Assume that electricity production has been done by several regional firms in the US, each operating as a pure monopoly. 2. Explain and graphically illustrate how the electrical monopolist would determine its profit maximizing price and output level. * Identify the area of consumer and producer surplus for the profit maximizing monopoly. * Identify the deadweight loss for the monopolist. 1. Now assume the federal government imposes a regulation on the monopoly. 2. Show and explain how the electrical monopolist would determine its profit-maximizing price and output level. * Identify the area of consumer surplus and producer surplus for the profit maximizing monopoly. * Identify the deadweight loss for the regulated monopolist. 1. Now the federal government decides to deregulate the market for electricity nationwide. 2. Show and explain how de-regulation will impact
2. Price Changes and
Responses by Consumers | Price | Quantity Demanded | Quantity Supplied | $4.89 | 311 | 255 | $4.29 | 388 | 214 | $5.39 | 198 | 309 | $5.19 | 268 | 300 | $5.00 | 279 | 279 |
Price Changes and
Responses by Consumers | Price | Quantity Demanded | Quantity Supplied | $4.89 | 311 | 255 | $4.29 | 388 | 214 | $5.39 | 198 | 309 | $5.19 | 268 | 300 | $5.00 | | |
Price Changes and
Responses by Consumers | Price | Quantity Demanded | Quantity Supplied | $4.89 | 311 | 255 | $4.29 | 388 | 214 | $5.39 | 198 | 309 | $5.19 | 268 | 300 | $5.00 | 279 | 279 |
1. Assume that electricity production has been done by several regional firms in the US, each operating as a pure monopoly. 2. Explain and graphically illustrate how the electrical monopolist would determine its profit maximizing price and output level. * Identify the area of consumer and producer surplus for the profit maximizing monopoly. * Identify the deadweight loss for the monopolist. 1. Now assume the federal government imposes a regulation on the monopoly. 2. Show and explain how the electrical monopolist would determine its profit-maximizing price and output level. * Identify the area of consumer surplus and producer surplus for the profit maximizing monopoly. * Identify the deadweight loss for the regulated monopolist. 1. Now the federal government decides to deregulate the market for electricity nationwide. 2. Show and explain how de-regulation will impact