Q1. What is the most important case that the tax as Supreme Court has well sales?
Q2. Discuss why tickets scalping at sports events where individuals buy several tickets in advance as well as sell them for very high costs just before a game may be desirable from efficiency point of view. Usually this activity is frowned on by governments as well as the promoters of such type of events. Explain why?
Q3. Supply of flat screen TV is very elastic. From falling production costs Consumer or producer illustrate who benefits most?
Motors co., believes it faces the following segmented demand as well as function:
P = 150 - 0.5Q when 0 ≤ Q ≤ 50
P = 200 - 1.5Q for Q > 50
a) Indicate both verbally as well as graphically why such a segmented demand as well as function is likely to exist. What type of industry structure is indicated by this relationship?
b) Calculate the marginal revenue functions facing Chill man. Add these to your graph from Part (a)
c) Chill man's total cost function is
TC1 = 500 + 15Q + .5Q2
Calculate the marginal cost function. What is Chill man's profit-maximizing cost as well as output combination?