Consider a town in which only two residents, Clancy and Eileen, own wells that produce water safe for drinking. Clancy and Eileen can pump and sell as much water as they want at no cost. For them, total revenue equals profit. The following table shows the town's demand schedule for water. Price (Dollars per gallon) Quantity Demanded Total Revenue (Gallons of water) (Dollars) 6.00 0 0 5.50 45 $247.50 5.00 90 $450.00 4.50 135 $607.50 4.00 180 $720.00 3.50 225 $787.50 3.00 270 $810.00 2.50 315 $787.50 2.00 360 $720.00
Q: A consumer has 4 units of x and 1 unit of y. The price of x is 3, and the price of y is 6. Suppose…
A: Utility function : U = xyEndowment : x = 4 , y =1 Price of x = 3 , Price of y = 6 Endowment…
Q: QUESTION 12 The relationship between the marginal utility that George gets from eating a bag of…
A: MU(Marginal Utility) is the change in TU(Total Utility) when an additional unit of the product is…
Q: Please answer these 3 question and give proper solution and write the solution on a paper thank you…
A: The first question is asking for the future worth of the maintenance cost for 8 years given an…
Q: Price Level AD₂ AD1 AD3 ° Real Domestic Output, GDP Refer to the accompanying graph. What…
A: The desire of an individual to buy a product according to the willingness and ability to purchase…
Q: Exercise 3.2 A three-man board, composed of A, B, and C, has held hearings on a personnel case…
A: The game theory term refers to one of the branches in mathematics (and economics) that…
Q: We are evaluating a project that costs $2,190,000, has a 8-year life, and has no salvage value.…
A: Project cost = $2,190,000Useful life = 8 yearsDepreciation = 2190000 / 8 = $273,750Sales = 91,200…
Q: What is the total amount to be repaid on a fixed rate mortgage of $135,000 for 30 years if the…
A: An interest rate tells you how high the cost of borrowing is, or high the rewards are for saving
Q: You are Brandon Johnson. The city needs money. You are contemplating 2 sources of revenue: levying…
A: The objective of the question is to understand the demand curves for gas and CTA fare, calculate…
Q: y 1. Draw a large (half a sheet of lined paper) budget constraint (feasible set) with income on the…
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: Suppose that the government instituted a per-unit tax on the output of a monopoly firm. A. graph…
A: B) The quantity level of that product will decline as the price level rises to the new equilibrium…
Q: You plan to invest $1,000 in a corporate bond fund or in a common stock fund. The following table…
A: Ultimately, the decision to invest in the common stock fund should be based on a careful assessment…
Q: Which of the following is included in the measurement of unemployment rate? Question 4Answer a. A…
A: The objective of the question is to identify which of the given options is considered unemployed…
Q: Unless quality and price are regulated by government, travelers would have no chance for a fair…
A: The issue is that the travel market is not regulated by the government concerning the quality and…
Q: The real GDP in 2010 was $1,800 billion and $1,944 billion in 2011.What is the growth rate in real…
A: The objective of the question is to calculate the growth rate in real GDP from 2010 to 2011.
Q: Generalized costs Charge = MPCLRT MSCLRT 2* MSC MPCC Automobile What is the optimal traffic volume…
A: We have to set the most efficient traffic demand in respect to automobiles and light rapid transit…
Q: Compare three alternatives on the basis of their capitalized costs at /= 9.00% per year and select…
A: Capitalized cost (CC) refers to the PW (present worth) of an alternative that is going to last…
Q: There are 10 households in Lake Wobegon, Minnesota, each with a demand for electricity of Lake…
A: Deadweight loss is the loss of consumer surplus and producer surplus when market does not work…
Q: None
A: The elasticity of supply basically refers to the percentage change in the quantity supplied of a…
Q: 4. Total economic surplus The following graph plots the supply and demand curves in the market for…
A: Total surplus is the overall social welfare achieved after both consumers and producers maximize…
Q: no handwritten notes!
A: ViewpointsClassicalKeynesianMonetaristExpansionary fiscal policy is either an unnecessary or…
Q: Q6. The table below gives the demand schedule for a good. Price level Quantity Demanded 100 40 80 60…
A: Demand schedule signifies different quantity demanded for one producer at its diffreent price…
Q: Suppose Antonio and Trinity are playing a game that requires both to simultaneously choose an…
A: Based on the payoff matrix you've provided: Explanation:In this game, the only dominant strategy is…
Q: Nominal GDP in this economy is trillion. If the velocity of money is 2, the money supply in this…
A: Macroeconomics examines the working, composition, and dynamics of an economy. To comprehend and…
Q: PLZ PLZ DRAW THE GRAPH OR EXPLAIN HOW TO DRAW IT PLZ!!! You learned that 3 factors could cause…
A: The foreign exchange market deals with the demand and supply of foreign exchange. Foreign exchange…
Q: A. Home has a comparative advantage in cloth. B. neither country has a comparative advantage in…
A: Comparative advantage describes the idea of comparing how much it costs in terms of what could have…
Q: Refer to the graph shown, which depicts a perfectly competitive firm that maximizes profit. If the…
A: In a perfectly competitive market, there are many buyers and sellers in the market. Firms sell…
Q: According to your text, the US should not return to a gold standard because a gold standard is least…
A: The central bank manages the supply of money in the economy via monetary tools such as adjustments…
Q: In a competitive market, suppose the introduction of a new technology in the production of electric…
A: The problem is to analyze how the introduction of cost-reducing and speed-enhancing technology in…
Q: [5] The supply curve is horizontal at the price of 3. At this price quantity demanded is 40 units of…
A: Consumer is an economic indicator measuring the consumer benefit from purchasing a product. The…
Q: casey recently inherited $100,000 from her grandma rather than invest the money in a mututral fund…
A: The given data are-
Q: A basket of goods in 2005 costs $625; the same basket of goods cost $800 in 2010.What is the…
A: The objective of the question is to calculate the percentage change in the price level of a basket…
Q: "Analyze the impact of a significant increase in international oil prices on a country's…
A: Inflation is an economic concept that refers to the rate at which the general level of prices for…
Q: Which of the following characteristic(s) of competitive markets is(are) necessary for a perfectly…
A: This issue lies in evaluating the subset of described traits that could be vital for a…
Q: 048 12 17 BAGELS Complete the following table by determining Charles's marginal rate of substitution…
A: It measures how much of one good person C is willing or ready to give up to obtain an additional…
Q: An increase in the price level shifts the AE curve A. downward and shifts the AD curve leftward. B.…
A: The aggregate expenditure (AE) model depicts the level of spending in an economy to the level of…
Q: What are the likely consequences of a government implementing a policy of austerity during a period…
A: The issue is to decide the probable results of an administration carrying out a strategy of…
Q: NPV Calculate the net present value (NPV) for the following 12-year projects. on the acceptability…
A: The present value of an ordinary annuity is a financial concept that represents the current value of…
Q: In Japan, suppose the CPI for the year 2010 is 150 and the CPI for 2011 is 135. Japan has…
A: The objective of the question is to determine whether Japan has experienced inflation or deflation…
Q: If a single firm with constant marginal costs of £8 monopolizes a market with a demand of Q=100-2P…
A: Consumer and producer surplus is a concept related to economic welfare. Higher consumer surplus is…
Q: The following graph gives the labor market for the fast-food industry of the imaginary city of…
A: A labor market is a set up where the forces of labor demand and labor supply operate to determine…
Q: U.S. International Transactions Table 20XX ($ bill.) 1. Merchandise exports 2. Merchandise imports…
A: Official Reserve Transaction Balance provides the net change of official reserves for each country…
Q: The federal government decides to stimulate the economy and increases government expenditure on new…
A: Govеrnmеnt spеnding rеfеrs to thе general еxpеnditurеs madе by using a govеrnmеnt inside a specific…
Q: What is the likely effect of a central bank engaging in open market operations to sell government…
A: The issue is to recognize the reasonable impact of a national bank's open market tasks, explicitly…
Q: That's right! To do expansionary fiscal policy, we decrease taxes. Our economists estimate that…
A: MPC is marginal propensity to consume. It is the change in consumption due to the change in income…
Q: RBW produces light sticks for one of their legendary girl groups, Kara. Suppose that RBWuses…
A: Dear student, I am waiting for your feedback.I have given my 100% to solve your queries.If you…
Q: The current debt stock for Kenya is estimated to range above Kshs. 9.4 trillion. Required: a)…
A: The economy of the desert continent thrives on various sectors, including tourism, mining, and…
Q: A regional automobile dealership sent out fliers to perspective customers indicating that they had…
A: How many fliers the automobile dealership sent out?31,748 fliers What is the expected value of the…
Q: Which of the following are objectives that the Bank of Canada tries to achieve when setting monetary…
A: Economic growthPrice stabilityExplanation:Step 1:Let's evaluate the options:Interest rate stability:…
Q: f 1 Appendix - showing an indifference curve. Quantity of Y C B Quantity of X The slope of the…
A: option (c) is correct See solution in image Explanation:
Q: "Everything has Already Happened" is a debate topic in a economics class. State points the proposing…
A: Economic analysis is the methodical way to deal with determining the optimum utilization of scarce…
Trending now
This is a popular solution!
Step by step
Solved in 5 steps with 6 images
- 3. Breakdown of a cartel agreement Consider a town in which only two residents, Jake and Latasha, own wells that produce water safe for drinking. Jake and Latasha can pump and sell as much water as they want at no cost. For them, total revenue equals profit. The following table shows the town's demand schedule for water. Price Quantity Demanded Total Revenue (Dollars per gallon) (Gallons of water) (Dollars) 5.40 0 0 4.95 40 $198.00 4.50 80 $360.00 4.05 120 $486.00 3.60 160 $576.00 3.15 200 $630.00 2.70 240 $648.00 2.25 280 $630.00 1.80 320 $576.00 1.35 360 $486.00 0.90 400 $360.00 0.45 440 $198.00 0 480 0 Suppose Jake and Latasha form a cartel and behave as a monopolist. The profit-maximizing price is per gallon, and the total output is gallons. As part of their cartel agreement, Jake and Latasha agree to split production equally. Therefore, Jake's profit is , and Latasha's profit is . Suppose that Jake and…6. Breakdown of a cartel agreement Consider a town in which only two residents, Sean and Yvette, own wells that produce water safe for drinking. Sean and Yvette can pump and sell as much water as they want at no cost. For them, total revenue equals profit. The following table shows the town's demand schedule for water. Price Quantity Demanded Total Revenue (Dollars per gallon) (Gallons of water) (Dollars) 6.00 5.50 45 248 5.00 90 450 4.50 135 608 4.00 180 720 3.50 225 788 3.00 270 810 2.50 315 788 2.00 360 720 1.50 405 608 1.00 450 450 0.50 495 248 5403. Breakdown of a cartel agreement Consider a town in which only two residents, Daniel and Gabrielle, own wells that produce water safe for drinking. Daniel and Gabrielle can pump and sell as much water as they want at no cost. For them, total revenue equals profit. The following table shows the town's demand schedule for water. Price (Dollars per gallon) Quantity Demanded Total Revenue (Gallons of water) (Dollars) 4.20 0 0 3.85 40 $154.00 3.50 80 $280.00 3.15 120 $378.00 2.80 160 $448.00 2.45 200 $490.00 2.10 240 $504.00 1.75 280 $490.00 1.40 320 $448.00 1.05 360 $378.00 0.70 400 $280.00 0.35 440 $154.00 0 480 0 Suppose Daniel and Gabrielle form a cartel and behave as a monopolist. The profit-maximizing price is $ output is per gallon, and the total gallons. As part of their cartel agreement, Daniel and Gabrielle agree to split production equally. Therefore, Daniel's profit is and Gabrielle's profit is $
- 3. Breakdown of a cartel agreement Consider a town in which only two residents, Musashi and Rina, own wells that produce water safe for drinking. Musashi and Rina can pump and sell as much water as they want at no cost. For them, total revenue equals profit. The following table shows the town's demand schedule for water. Price Quantity Demanded Total Revenue (Dollars per gallon) (Gallons of water) (Dollars) 3.60 3.30 35 $115.50 3.00 70 $210.00 2.70 105 $283.50 2.40 140 $336.00 2.10 175 $367.50 1.80 210 $378.00 1.50 245 $367.50 1.20 280 $336.00 0.90 315 $283.50 0.60 350 $210.00 0.30 385 $115.50 420 Suppose Musashi and Rina form a cartel and behave as a monopolist. The profit-maximizing price is $ per gallon, and the total output is gallons. As part of their cartel agreement, Musashi and Rina agree to split production equally. Therefore, Musashi's profit is %2$ , and Rina's profit is $3. Breakdown of a cartel agreement Consider a town in which only two residents, Carlos and Deborah, own wells that produce water safe for drinking. Carlos and Deborah can pump and sell as much water as they want at no cost. For them, total revenue equals profit. The following table shows the town's demand schedule for water. Price Quantity Demanded Total Revenue (Dollars per gallon) (Gallons of water) (Dollars) 3.60 3.30 35 $115.50 3.00 70 $210.00 2.70 105 $283.50 2.40 140 $336.00 2.10 175 $367.50 1.80 210 $378.00 1.50 245 $367.50 1.20 280 $336.00 0.90 315 $283.50 0.60 350 $210.00 0.30 385 $115.50 420 per gallon, and the total Suppose Carlos and Deborah form a cartel and behave as a monopolist. The profit-maximizing price is $ output is gallons. As part of their cartel agreement, Carlos and Deborah agree to split production equally. Therefore, Carlos's profit is 24 and Deborah's profit is $ orice and sell half of the monopoly Suppose that Carlos and Deborah have been successfully…6. The cartel Consider a town in which only two residents, Rajiv and Simone, own wells that produce water safe for drinking. Rajiv and Simone can pump and sell as much water as they want at no cost. For them, total revenue equals profit. The following table shows the town's demand schedule for water. Price (Dollars per gallon) 6.00 Quantity Demanded Total Revenue (Gallons of water) (Dollars) 0 0 5.50 45 247.50 5.00 90 450.00 4.50 135 607.50 4.00 180 720.00 3.50 225 787.50 3.00 270 810.00 2.50 315 787.50 2.00 360 720.00 1.50 405 607.50 1.00 450 450.00 0.50 495 247.50 0 540 0 Suppose Rajiv and Simone form a cartel and behave as a monopolist. The profit-maximizing price is $ per gallon, and the total output is gallons. As part of their cartel agreement, Rajiv and Simone agree to split production equally. Therefore, Rajiv's profit is $ and Simone's profit is $ Suppose that Rajiv and Simone have been successfully operating as a cartel. They each charge the monopoly price and sell half of…
- 3. Breakdown of a cartel agreement Consider a town in which only two residents, Van and Amy, own wells that produce water safe for drinking. Van and Amy can pump and sell as much water as they want at no cost. For them, total revenue equals profit. The following table shows the town's demand schedule for water. Price Quantity Demanded Total Revenue (Dollars per gallon) (Gallons of water) (Dollars) 6.00 5.50 45 $247.50 5.00 90 $450.00 4.50 135 $607.50 4.00 180 $720.00 3.50 225 $787.50 3.00 270 $810.00 2.50 315 $787.50 2.00 360 $720.00 1.50 405 $607.50 1.00 450 $450.00 0.50 495 $247.50 540 Suppose Van and Amy form a cartel and behave as a monopolist. The profit-maximizing price is S per gallon, and the total output is gallons. As part of their cartel agreement, Van and Amy agree to split production equally. Therefore, Van's profit is s and Amy's profit is $ Suppose that Van and Amy have been successfully operating as a cartel. They each charge the monopoly price and sell half of the…Breakdown of a cartel agreement Consider a town in which only two residents, Sean and Yvette, own wells that produce water safe for drinking. Sean and Yvette can pump and sell as much water as they want at no cost. For them, total revenue equals profit. The following table shows the town's demand schedule for water. Price Quantity Demanded Total Revenue (Dollars per gallon) (Gallons of water) (Dollars) 5.40 0 0 4.95 40 $198.00 4.50 80 $360.00 4.05 120 $486.00 3.60 160 $576.00 3.15 200 $630.00 2.70 240 $648.00 2.25 280 $630.00 1.80 320 $576.00 1.35 360 $486.00 0.90 400 $360.00 0.45 440 $198.00 0 480 0 Suppose Sean and Yvette form a cartel and behave as a monopolist. The profit-maximizing price is $ __________ per gallon, and the total output is __________ gallons. As part of their cartel agreement, Sean and Yvette agree to split production equally. Therefore, Sean's profit is $ __________ , and Yvette's profit is __________ .…Quèstion 13 Figure#5 $10 MC ATC $7 $6 $5 $4 $3 $2 $1 MR $0 0 10 20 30 40 50 60 70 80 90 100 Quantity Refer to Figure#5. This figure depicts a situation in a monopolistically competitive market. In long run, how much output will the monopolistic competition produce and will charge at what price? Price 9876 5A32
- 4. An amusement park has 1 000 visitors every Saturday and charges $55 per person to enter the park. Research shows that for every $1 decrease in price, 25 more people will come to the park, and for every $1 increase in price, 25 fewer people will come to the park. The park has a maximum capacity of 1 600 people, and they must have more than 800 visitors to break even. What price should they charge to maximise their revenue, to the nearest dollar?Quantity (in gallons) Total Price Revenue $8 $0 50 7 350 100 600 150 750 200 4 800 250 3 750 300 600 350 1 350 400 Imagine a small town in a remote area where only two residents, Maria and Miguel, own dairies that produce milk. Their respective dairies are equal in size. Each week Maria and Miguel work together to decide how many gallons of milk to produce and what price to charge. To keep things simple, suppose that Maria and Miguel can produce as much milk as they want without cost so that the marginal cost is zero and there are no fixed costs. The weekly town demand schedule and total revenue schedule for milk is shown in the table above. Suppose the town enacts new antitrust laws that prohibit Maria and Miguel from operating as a cartel. Assuming that each producer can only modify quantity in increments of 50, which of the following is consistent with the Nash equilibrium for this scenario? Maria will charge a price of $5 for each gallon. Miguel will sell 100 gallons. Milk will…3. The cartel of copper exporting countries is called COPEC. As part of an international trade agreement, the United States has agreed to buy all the copper that COPEC wants to sell to the United States at a constant price of $100 per tonne. COPEC also sells copper in Europe at a price of $150 per tonne. COPEC acts just like a monopolist; if it finds it is profit maximising to sell in the United States at $100 per tonne and simultaneously to sell in Europe for $150 a tonne, what is the price elasticity of demand of COPEC's copper in the European market? Carefully explain all the steps in the derivation of the value of the elasticity including the underlying economic theory approach behind it.