10. If the firm is regulated such that it earns zero economic profit, the firm will sell pairs of shoes at a price of per pair. a) Q₁; P₁ b) Q2; P1 c) Q4; P3 d) Q3; P2 Price P MC ATC Demand MR Q₁ Q2 Q3 Q4 Quantity
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- True or False: (D). A monopoly earns total revenue of $5000 when it sells 500 units of output and total revenue of $5400 when it sells 600 units of output. Thus, the marginal revenue of the 600th unit is $9. (E). We call a market where there is only one buyer for a good or service a monopoly. (F). There are a few firms selling differentiated products in a monopolistically competitive industry. (G). When a demand curve is a downward sloping straight line, the slope of the marginal revenue curve is twice as steep as the demand curve.Refer to Figure 14-10. When market price is P1, which area represents a profit- maximizing firm’s total profit or loss? a.(P2 –P1)×Q2;profit b.(P2 –P1)×Q1;loss c.(P3 –P1)×Q2;loss d.(P3 –P1)×Q1;profitCreative Homework!Shorr Project Assume that you area marketing consultant for one of the clients in ilem14.16. You believe that the business would benefitfrom nontraditional marketing. Develop seve<al ideasfor social-media tactics that you feel would be successful for the client
- 7. If a firm practices first-degree price discrimination, the firm must: (a) have customers with identical demand curves. (b) have complete information about each customer's unique demand curve before the customer buys the product. (c) be able to identify each customer's demand curve after the customer buys the product. (d) lack market power but know how its customers differ by their willingness to pay for the product. (e) (b) and (d) (f) (a) and (c) (g) (a) and (b) (h) (c) and (d) Answer: 7b.A company produces a special new type of TV The company has fixed costs of 5497,000, and it costs $1100 to produce each TV The company projects that if it charges a price of $2200 for the TV, it will be able to sell 800 TVs. If the company wants to sell 850 TVs, however, it must lower the price to $1900. Assume a linear demand. What price should the company charge to earn a profit of $883,0007 It would need to charge $ (Round answer to nearest dollar. If more than one answer, separate with a comma)(J) Pure monopolies are said to be allocatively inefficient because price is equal to marginal cost. price is greater than marginal cost. price is less than marginal cost. they produce whereMR>MC
- Suppose you own a tax preparation services company, with fixed costs of $3,000/month and marginal costs of $25/appt.If the price is $60/appt, 500 appointments would be sold. If the price is $50/appt, 760appointments would be sold. a.)Use these figures to calculate the price elasticity of demand for your services. b.)Calculate the monthly profits and profit margins (profit/revenue) associated with the price of $60/appt and $50/appt. c.)Given these calculations, what price should you charge for your services, $50/apptor $60/appt? ExplainSuppose that the restaurant industry in Honolulu is monopolistically competitive and is currently in Stage 2 equilibrium (firms currently make zero profit). The graph below shows the cost curves for a typical restaurant in this industry. (a) Draw a demand curve and an MR that is consistent with this market being in Stage 2 equilibrium. (b) Show the equilibrium price Now suppose an highly-infectious new virus comes to the island, causing demand for restanrant meals to shift in. (c) What would you expect this change in restaurant demand when the number of firms is fixed? Explain. (d) What would you expect the change in demand to do to the number of meals sold, prices and profits of firms in the long run if firms can enter and exit? What happens to the mumber of restaurants?Continuing with the Table of Certificate Programs, complete the calculations for Total Revenue by determining how many customers will purchase at each of the segments' bundle prices. Online Self Certifications for Social Work License Certification in Online Counseling Segment 1. 1000 Segment 2 Segment 3 Segment 4 4a) 4b) 4c) Customers 4d) 1000 1000 1000 $190 $150 $95 $35 TR Counseling a b с d Certification as a Group Home Counselor $70 $90 $160 $195 TR Group Home e f g h Bundle $260 $240 $255 $230 TR Bundle 4a 4b 4c 4d
- Research has found that used-car salesmen often offer women buyers a higher price than male buyers. This is most likely because: (a) the second-hand car market allows first-degree price discrimination. (b) the second-hand car market allows second-degree price discrimination. (c) the second-hand car market allows third-degree price discrimination. (d) used-car salesmen usually find it easier to determine the reservation prices of male buyers than of women buyers.The following graph depicts the costs incurred by a Local egg seller, Rahim. Rahim is faced with strong competitors who are selling exactly the same product. Use the graph to answer the following questions- Price/Cost per egg MC 12 ATC MR3 AVC MR2 MR1 Quantity 100 200 300 400 a)lf the market price per egg is 8tk, in order to maximize profit how many eggs does Rahim sell? b)lf the price stays at 8tk, what happens in the long run? choose from the following options. option 1: Rahim stops selling eggs. option 2 : New firms enter into the egg market option 3: all existing sellers suffer from an economic loss. c)lf the price falls down to 3tk price, which of the following option does Rahim have in short run? option1: Temporarily shutting down the business business option 2 : staying in generating no profit option 3: indifferent between staying in and going Out of the market. butYour niece owns a different type of chicken restaurant. She specializes in chicken and noodles and chicken pot pie. Her pot pie is the better seller. However, when its cold outside, the chicken and noodles is the better seller. She goes through about 100 chickens every two days. It takes about 60 chickens to make 600 pot pies. The other 40 chickens are used to make about 320 chicken and noodle dishes. When its cold outside it takes 70 chickens to meet the demand for chicken and noodles. Construct a production possibilities model that graphically illustrates this problem.