Microeconomics (2nd Edition) (Pearson Series in Economics)
2nd Edition
ISBN: 9780134492049
Author: Daron Acemoglu, David Laibson, John List
Publisher: PEARSON
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Question
Chapter 12, Problem 3P
To determine
Author or publisher, the better off from the higher price.
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Textbook publishers hope to maximize profits. Authors, however, face very different incentives. Authors are typically paid royalties, which are a specific percentage of total revenue from the sale of a book. And so, for example, if an author's contract says that she will receive 20 percent of the revenues from the sale of a text and the publisher's total revenues are $100,000, the author's royalties will be $20,000. Who will prefer a higher price for the text, the publisher or the author?
The widget market is competitive and includes no transaction costs. Five suppliers are willing to sell one widget at the following prices: $18, $14, $12,
$6, and $3 (one seller at each price). Five buyers are willing to buy one widget at the following prices: $12, $14, $18, $28, and $34 (one buyer at
each price).
For each price shown in the following table, use the given information to enter the quantity demanded and quantity supplied.
Quantity Demanded Quantity Supplied
(widgets)
(widgets)
Price
($ per widget)
$3
$6
$12
$14
$18
$28
$34
In this market, the equilibrium price will be
per widget, and the equilibrium quantity will be
4
5
0
3
1
2
widgets.
You are running a chocolate factory and need to decide on the price to sell the chocolate as well as the quantity to produce. Demand curve; Q = 8.5 - 0.05 * P. The cost curve is C = 100 + 38Q.
The business is a profit maximizer.
1) What is the best price to charge each week?
2) What is the best quantity to make each week?
3) What are the expected profits
Is it possible to get this in an excel with equation formulas
Chapter 12 Solutions
Microeconomics (2nd Edition) (Pearson Series in Economics)
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