PROBLEM 1: The demand curve for a particular good is given by its marginal private benefit function.
Let MPB = 24 - 2q, where q is the quantity demanded. Let the marginal private cost
function be MPC = q. Suppose that marginal social benefit is always double the marginal
private benefit
1. Graph the functions, and mark out the (i) the market equilibrium, (ii) the efficient
equilibrium.
2. Algebraically determine the market level of output and the optimal level of
output.
3. What is the welfare loss at the market equilibrium compared to the efficient
equilibrium? Show your answer on the graph and calculate it numerically.
4. What tax level would achieve the optimal level of output? What will be the
corresponding tax revenue? Show the optimal tax level and tax revenue on the
graph, and also calculate these numbers using algebra.

The production manager of rordan corporation has submitted the following quarterly production forecast for the upcoming fiscal year: 1st quarter 2nd quarter 3rd quarter 4th quarter units to be produced 10,800 8,500 7,100 11,200 each unit requires 0.25 direct labor-hours, and direct laborers are paid $20.00 per hour. required: 1. prepare the company’s direct labor budget for the upcoming fiscal year. assume that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. 2. prepare the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is not adjusted each quarter. instead, assume that the company’s direct labor workforce consists of permanent employees who are guaranteed to be paid for at least 2,500 hours of work each quarter. if the number of required direct labor-hours is less than this number, the workers are paid for 2,500 hours anyway. any hours worked in excess of 2,500 hours in a quarter are paid at the rate of 1.5 times the normal hourly rate for direct labor.

In each of the following cases, find the unknown variable. ignore taxes. (do not round intermediate calculations and round your answers to the nearest whole number, e. g., 32.) accounting unit price unit variable cost fixed costs depreciation break-even 20,500 $ 44 $ 24 $ 275,000 $ 133,500 44 4,400,000 940,000 8,000 75 320,000 80,000

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