得分阅卷教师 三、Calculation:(每题20分，共40分) 1.A firm faces the following average revenue (demand)curve: P=120-0.02Q where Q is weekly production and P is price,measured in cents per unit.The firm's cost function is given by C=60Q+25,000.Assume that the firm maximizes profits. a.What is the level of production,price,and total profit per week? b.If the government decides to levy a tax of 14 cents per unit on this product, what will be the new level ofproduction,price,and profit? e market demand function is given by an tion for the aggrega dealg1lt he pllle geeraled he n ost of prod cleaning process creates external damages given by the marginal external cost curve MEC=Q. Calculate the output and price of dry cleaning if it is produced under sent regulation the socially c pricend output of dry as ab b Determine the tax that would result in a competitive market producing the socially efficient output. e Calculate the output and price of dry cleaning if it is produced under monopolistic conditions without regulation d Determine the tax that would result in a monopolistic market producing the socially efficient output. e Assuming that no attempt is made to monitor or regulate the pollution,which market structure yields higher social welfare?Discuss. 三、Calculation：（每题 20 分，共 40 分） 1. A firm faces the following average revenue (demand) curve: P = 120 - 0.02Q where Q is weekly production and P is price, measured in cents per unit. The firm’s cost function is given by C = 60Q + 25,000. Assume that the firm maximizes profits. a. What is the level of production, price, and total profit per week? b. If the government decides to levy a tax of 14 cents per unit on this product, what will be the new level of production, price, and profit? 2 In a market for dry cleaning, the inverse market demand function is given by  P = 100− Q and the (private) marginal cost of production for the aggregation of all dry cleaning firms is given by  MC =10 + Q . Finally, the pollution generated by the dry cleaning process creates external damages given by the marginal external cost curve  MEC = Q. Calculate the output and price of dry cleaning if it is produced under competitive conditions absent regulation. a Determine the socially efficient price and output of dry cleaning. b Determine the tax that would result in a competitive market producing the socially efficient output. c Calculate the output and price of dry cleaning if it is produced under monopolistic conditions without regulation. d Determine the tax that would result in a monopolistic market producing the socially efficient output. e Assuming that no attempt is made to monitor or regulate the pollution, which market structure yields higher social welfare? Discuss. 得分 阅卷教师