Amonopolist faces the following inverse demand curve: pp(q) = 400 – 4q and its cost function is given by c(q) = 2q2 + 40. 1. what is the firm's elasticity of demand? 2. recall that a monopolist's supply curve is its marginal cost curve. express the firm's supply curve as a function of q, ps(q). 3. what price and quantity levels maximize total welfare? how is this welfare allocated between consumers and producers? 4. calculate the monopoly price and quantity traded for the firm. calculate the consumer surplus, producer surplus, profit and dead weight loss (dwl) at the monopoly price. 5. compute the lerner's index. suppose the government decides to regulate the industry in which the firm operates with the objective of increasing consumer surplus. it tells the firm that it will be paid $80 dollars for each unit it sells. 6. how much does the firm produce? how much does this subsidy cost the government?

Blanchard and peale am i in compliance with the law? what contribution does this choice of action make to the company, the shareholders, the community, and others? what are the short- and long-term consequences of this decision? 1. make sure you have a grasp of all of the facts available. 2. list any information you would like to have but don't and what assumptions you would have to make, if any, in resolving the dilemma. 3. take each person involved in the dilemma and list the concerns they face or might have. 4. develop a list of resolutions for the problem. 5. evaluate the resolutions for costs, legalities, and impact. 6. make a recommendation on the actions that should be taken. "contemplating any business act, an employee should ask himself whether he would be willing to see it immediately described by an informed and critical reporter on the front page of his local paper, there to be read by his spouse, children, and friends." is it legal? is it balanced? how does it make me feel?