58 838
Assignments Done
98,8%
Successfully Done
In March 2018
Your physics homework can be a real challenge, and the due date can be really close — feel free to use our assistance and get the desired result.
Be sure that math assignments completed by our experts will be error-free and done according to your instructions specified in the submitted order form.

# Answer on Microeconomics Question for James

Question #23035
1. Consider a competitive firm. Its marginal cost function is MC(q)=2q and the market price is $20. How much output will this firm produce? 2. Consider a competitive firm. Its cost function is c(q)=2q 2 and the market price is$20. How much
output will this firm produce?
3. Consider a competitive firm. Its cost function is c(q)=2q and the market price is $10. Write down the revenue and the marginal revenue function. 5. Why does a tax create a deadweight loss? What determines the size of this loss? Expert's answer 1. Consider a competitive firm. Its marginal cost function is MC(q)=2q and the market price is$20. How much output will this firm produce?
MR = MC = P,
MC = 2q = 20,
q = 10

2. Consider a competitive firm. Its cost function is c(q)=2q2 and the market price is $20. How much output will this firm produce? MC = c&#039;(q) = (2q2)&#039; = 4q, 4q = 20, q = 5 3. Consider a competitive firm. Its cost function is c(q)=2q and the market price is$10. Write down the revenue and the marginal revenue function.
TR = P*q = 10q, MR = TR&#039; = 10

5. Why does a tax create a deadweight loss? What determines the size of this loss?
A tax creates deadweight loss by artificially increasing price above the free market level, thus reducing the equilibrium quantity. This reduction in demand reduces consumer as well as producer surplus. The size of the deadweight loss depends on the elasticities of supply and demand. As the elasticity of demand increases and the elasticity of supply decreases, i.e., as supply becomes more inelastic, the deadweight loss becomes larger.

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!