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maxonik [38]
3 years ago
6

If the inverse demand curve P = 180 – Q and the marginal cost is constant at ​$20​, how does charging the monopoly a specific ta

x of ​$14 per unit affect the monopoly optimum and the welfare of​ consumers, the​ monopoly, and society​ (where society's welfare includes the tax​ revenue). What is the incidence of the tax on​ consumers?

Business
1 answer:
german3 years ago
4 0

Answer:

$65

Explanation:

The inverse demand function is as follows:

P = 120 - Q

TR = 120Q - Q²

MR = \frac{dTR}{dQ}

MR = 120 - 2Q

The marginal cost is constant at $10.

The profit maximizing point is where MR = MC

MR = MC

102 - 2Q = 10

Q = 55

P = 120 - Q = $65

check additional details in the attached files

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kicyunya [14]

Answer: The answers are provided below.

Question:

Here is the complete question:

Marian, a top graduate from Loyola in Humanities, was hired by a major corporation into a management position. Marian finished the corporation's management training program top in her group, and is performing above the norm in her position. She is really enjoying her work.

As a woman she feels isolated, as there are no other women managers and few women in her area. One night at a company party she heard a conversation between two of her male co-workers and their supervisor. They were complaining to him about Marian's lack of qualifications and her unpleasant personality. They cursed affirmative action regulations for making the hiring of Marian necessary.

Marian is very upset and wants to quit.

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a. Should Marian quit?

b.Are her co-workers correct in their evaluation?

c. Should Marian confront the co-workers?

d. Should Marian file a discrimination suit?

e. Should Marian go to the supervisor?

f. What else could Marian do?

Explanation:

a. No, Marian does not have to quit her job but should rather face the situation. She came top in her group during the management training and she deserves to stay in her position and continue to perform well. She is doing well at her role and the opinion of others does not matter.

b. No, Marian co-workers are not correct with regards to their evaluation. She has sufficient and good qualifications which was the reason she got the job and she is also performing well. Also, Marian does not have an unpleasant personality but rather feels isolated because she is the only woman. Her colleagues should help her out in order to deal with the situation.

c. Yes, Marian should go and confront her co-workers. The co-workers have a wrong image of Marain in their minds and she should speak to them and clear the issues. This will help her to be more social with her male colleagues are also build a better working relationship.

d. No, Marian should not file a discrimination suit. The comments made by her co-workers were not discriminatory but rather she was misunderstood at work due to her reserved personality. She should relate better with her colleagues, be social and also build a bond with her colleagues.

e. Marian should go to her supervisor only when she was not successful when she confronted her colleague. She should confront her co-workers first and if that doesn't work, she can then go to her supervisor.

f. Marian should become social and be more friendly with her colleagues. She should talk and relate with her male colleagues. She can discuss work related issues with them and sometimes offer a helping hand. This would help build a bond.

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3 years ago
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