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Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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
Transcribed Image Text:Given:
P = Phones
M = Music Players
Surplus inventory = 2P + 8M
At what values does the graph reach the minimum surplus inventory?
12
11
10
9-
Music
54
Players
8
3
2
1
-1
1
2
3
4
5
6
7
8
9 10 11 12 13
-1
Phones
Phones =
Music Players =
Surplus inventory =
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- Name some farm that can cause a shift in the supply curve in markets for goods and services.arrow_forwardFour films called Elm, Maple, Oak, and (Shelly, produce wooden chairs. However, they also produce a great deal of garbage (a mixture of glue, varnish, sandpaper, and wood scraps). The first row of Table 12.6 shows the total amount of garbage (in tons) that each film currently produces. The other rows of the table show the cost of reducing garbage produced by the first five tons, the second five tons, and so on. First, calculate the cost of requiring each firm to reduce the weight of its garbage by one-fourth. Now, imagine that the government issues marketable permits for the current level of garbage, but the permits will shrink the weight of allowable garbage for each film by one-fourth. What will be the result of this alternative approach to reducing pollution?arrow_forwardA firms marginal cost curve above the average variable cost curve is equal to the films individual supply curve. This means that every time a firm receives a price from the market it will be willing to supply the amount of output where the price equals marginal cost. What happens to the films individual supply curve if marginal costs increase?arrow_forward
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