Jenney

Consider the problem of a rational consumer with an experienced utility function given by 8x√+m. Let p=$1 p/unit denote the market price of good x. Suppose that, initially, the firm selling the good matches his purchases as follows: for every x units that...

Consider a market in which aggregate demand is given by 1000−10p, and aggregate supply is given by 10p, where p denotes the market price. QUESTION: What is the maximum amount of revenue that the government can raise using a per-unit sales tax on consumers...

Consider an oligopolistic market with two firms. Each of them produces using a cost function given by c(q)=q^2. The aggregate demand in the market is given by 1000−p. Suppose that, in order to increase production, the government gives the firms a $100 per...