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I have 1 final paper that I just can't past and need immediate help with craeting graphs and explaining the answer. Thanks



micro eco last assignment.docx

1. The state of California recently considered passing a tax on the services of doctors in that state
in order to raise revenue to pay for universal health coverage for California residents. Suppose
the average open heart surgery costs $100,000, and at that price 23,339 surgeries are performed
each year. Fully explain what the most likely outcome would be in this market if a tax on
surgeries is implemented. Use a graph if it will help.
2.
Price Changes and
Responses by Consumers
Price Quantity Demanded Quantity Supplied
$4.89

311

255

$4.29

388

214

$5.39

198

309

$5.19

268

300

$5.00

279

279

Price Changes and
Responses by Consumers
Price Quantity Demanded Quantity Supplied
$4.89

311

255

$4.29

388

214

$5.39

198

309

$5.19

268

300

$5.00
Price Changes and
Responses by Consumers
Price Quantity Demanded Quantity Supplied
$4.89

311

255

$4.29

388

214

$5.39

198

309

$5.19

268

300

$5.00

279

279

1. Assume that electricity production has been done by several regional firms in the US,
each operating as a pure monopoly.
2. Explain and graphically illustrate how the electrical monopolist would determine its
profit maximizing price and output level.
Identify the area of consumer and producer surplus for the profit maximizing monopoly.
Identify the deadweight loss for the monopolist.
1. Now assume the federal government imposes a regulation on the monopoly.
2. Show and explain how the electrical monopolist would determine its profit-maximizing
price and output level.
Identify the area of consumer surplus and producer surplus for the profit maximizing
monopoly.
Identify the deadweight loss for the regulated monopolist.
1. Now the federal government decides to deregulate the market for electricity
nationwide.
2. Show and explain how de-regulation will impact price and output in the now perfectly
competitive market for electricity production. (Hint: You should use a monopoly graph to
show where the perfectly competitor would operate.)
Identify the area of consumer surplus and producer surplus for the profit maximizing
monopoly.
3. Getting a flu shot reduces not only your chance of getting the flu but also the chance that you
will pass it on to someone else.
a. Draw a diagram showing the supply and demand curves of inoculating different proportions of
the population. Assume that the marginal cost of each flu shot is constant and is equal to the
marginal social cost, and that the demand curve is downward sloping.
b. Will the marginal social benefit curve be higher, lower, or the same as the demand curve?
Why? Draw the marginal social benefit curve into your diagram.
c. In your diagram, show the market equilibrium quantity and the socially optimal quantity of flu
shots. Is the market equilibrium quantity of flu shots socially efficient?
Why or why not?
d. Many university health centers offer free flu shots to students and employees. Does this
solution necessarily achieve efficiency? Explain, using your diagram.

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