Question

how much should george charge if he must charge a single price to all customers? $ 34at this price, how many portraits will george produce each day? 5 portraitswhat will be his economic profit? $ 110 per day b. how much consumer surplus is generated each day at this price? $ c. what is the socially efficient number of portraits? portraits d. george is very experienced in the business and knows the reservation price of each of his customers. if he is allowed to charge any price he likes to any consumer, how many portraits will he produce each day? 5 portraits.what will his economic profit be? $ per day e. in this case, how much consumer surplus is generated each day? $

Answer 1

George charges a single price of $34 to all customers and produces 5 portraits per day. His economic profit is $110 per day. There is no consumer surplus at this price. The socially efficient number of portraits and the consumer surplus if George is allowed to charge any price cannot be determined without more information.

Based on the given information, George charges a single price of $34 to all customers and produces 5 portraits each day. His economic profit is $110 per day.

Consumer surplus is the difference between what customers are willing to pay and what they actually pay. Since George charges a fixed price to all customers, there is no consumer surplus generated at this price.

The socially efficient number of portraits would depend on the value that society places on each portrait and the cost of producing them. Without this information, we cannot determine the socially efficient number of portraits.

If George is allowed to charge any price he likes, he will still produce 5 portraits each day. His economic profit would depend on the price he decides to charge and the costs of producing the portraits.

Without more information, we cannot determine the consumer surplus generated each day if George is allowed to charge any price.